International Graphite has partnered with Norwegian critical minerals developer Arctic Graphite and investment firm Graphite Investment Partners (GIP) to establish an expandable graphite processing facility in Germany.
This collaboration aims to strengthen Europe’s domestic supply of expandable graphite, a material in growing demand due to its use in various products including flame retardants and insulating foils.
International Graphite managing director and CEO Andrew Worland said that the initiative involving Arctic and GIP, supported by associates such as LNS, ProGraphite and Hensen, validates the company’s corporate strategy.
Worland said: “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.
“The partnership brings together the highest calibre of graphite technical and operational expertise, corporate and financial capability and graphite market experience.”
Arctic has conducted a preliminary economic assessment with ProGraphite and Hensen, indicating a positive financial outlook for the new facility.
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By GlobalDataThe assessment estimates a production capacity of 3,000 tonnes per annum (tpa) and a capital cost of €5m ($5.8m).
The goal is to optimise “capital efficiency” and “scalability” using third-party feedstock.
Upon successful assessment outcomes, International Graphite and Arctic plan will form a 50/50 joint venture (JV) to finance, construct and operate the facility.
GIP has committed to securing essential permits, supply and marketing agreements, and at least 50% of the capital cost estimate through non-dilutive funding.
If the JV proceeds and GIP fulfils its deliverables, International Graphite will, subject to shareholder approval, issue shares to GIP, equating to a 12.5% stake in the company.
Additionally, GIP has expressed a non-binding interest in arranging A$10m ($6.5m) in funding for the facility’s capital costs and the construction of another graphite operation, the Collie Micronising Facility, contingent upon due diligence and agreed terms.
The expandable graphite processing facility and Collie Micronising Facility are expected to begin production by 2027 and together will be capable of producing approximately 10,000tpa of “high-value” graphite products.
Expandable graphite is produced by treating natural flake graphite with intercalating agents, which, when heated, cause the material to expand. This process results in a lightweight, insulating carbon structure.
Currently, Europe imports most of its expandable graphite, highlighting the need for an independent supply source within the continent.
