International Graphite clears US DoD funding hurdle for Springdale battery anode proposal

International Graphite (ASX: IG6) has cleared the first hurdle in its bid to obtain US government endorsement for its plans to develop a new source of battery anode graphite to support the global transition to clean energy.

The company’s innovative plans have already won significant government support in Australia and it is now following up on a similar opportunity in the US, which is on the hunt for new sources of the critical mineral.

The company has recently lodged a proposal for up to $11.7 million in feasibility study funding from the US Department of Defense to support its integrated graphite ‘mine-to-market’ strategy in Western Australia.

White paper proposal

International Graphite submitted its white paper proposal “Addressing Shortfalls in the US Graphite Supply Chain and Defense Industrial Base” to the US Defense Industrial Base Consortium (DIBC), which has now delivered some positive feedback.

The white paper outlined how US funding could help support the completion of feasibility studies confirming the viability of the company’s Springdale graphite project and downstream processing facilities at Collie, both in southern WA.

Those assets are the key to the company’s mine-to-market strategy, which it believes could help the US diversify its graphite supply chains in favour of one of the most stable, secure and reliable jurisdictions in the world.

Requirements met

Positive feedback from the DIBC noted that the International Graphite proposal met the requirements needed for “Award/Basket Consideration”.

As a result, the DIBC will now consider the proposal for award funding.

“USA is searching for quality critical minerals and is determined to lock in secure sources to meet projected commercial and defence demand,” International Graphite chief executive officer Andrew Worland said.

“It’s only natural that Australia and the US should co-operate to strengthen the critical minerals supply chain.”

Critical mineral

Graphite is a critical mineral in the global shift to clean energy and battery-powered technologies.

International Graphite has recently received positive assessments of its global development plans.

A test work program coordinated by Japan’s Marubeni Corporation, one of the world’s biggest integrated trading and investment conglomerates, returned battery-grade results from Springdale graphite concentrates.