International Graphite Partners with Arctic AS to Boost Europe’s Clean Energy Future

International Graphite (ASX: IG6) has signed a new partnership deal that will see it play an important role in the development of Europe’s future clean energy and defence requirements.

In a significant milestone for the Western Australia-based graphite specialist, International Graphite has revealed it is working with a subsidiary of Norwegian construction giant Leonhard Nilsen & Sønner AS (LNS) to develop an expandable graphite facility (EGF) in Germany.

After already achieving government recognition for its vertically integrated mine-to-market graphite and battery anode material production operation in WA, the company is now taking the next step in a carefully planned global expansion.

Arctic Graphite Collaboration

Under the new collaboration, International Graphite and Arctic Graphite AS – which LNS owns 50% of – will support the development of a European critical metals supply chain.

Arctic shareholder Graphite Investment Partners has agreed to co-ordinate funding for at least 50% of the estimated $8.95 million capital cost of the facility and has issued a non-binding letter of interest to arrange up to $10 million in total funding.

The partners expect to commence operations at the new plant in 2027 and meet around 10% of Europe’s expandable graphite consumption, producing approximately 3,000 tonnes of product a year.

International Graphite will manage initial technical, commercial, economic and environmental assessment for the EGF, with future plans including the creation of a 50/50 joint venture with Arctic to finance, build and operate the facility.

Deep European Knowledge

International Graphite chief executive officer Andrew Worland highlighted the quality of the European supporters of the project, which include technical specialists ProGraphite and Hensen, along with LNS.

“Our partners have a deep knowledge of the European graphite market and supply chain and share our vision to establish smaller scale, lower capital cost projects in tier one jurisdictions that can be brought to production quickly and developed with further expansion capability,” he said.

“The partnership brings together the highest calibre of graphite technical and operational expertise, corporate and financial capability and graphite market experience.”

The partners have identified Germany as the preferred location for the facility.

Critical Minerals Supply Chain

The main focus of the project will be to support Europe’s efforts to secure critical minerals in the face of rising geopolitical tensions and supply chain risk.

The EU is currently highly dependent on imports of graphite, extracting less than 0.1% of its total needs, with China supplying around 40%.

With the rapid expansion of electromobility and energy storage technologies, analysts forecast the EU’s demand for graphite will reach 480,000 tonnes in 2030.

International Graphite expect both the EGF and Collie Micronising Facility to become operational in 2027, with a combined annual capacity of approximately 10,000 tonnes of high-grade graphite products.