Australia’s first vertically integrated graphite-to-anode demonstration facility has begun operations in Townsville, with Graphinex producing battery-grade material for international markets.
The facility processes graphite from the Esmeralda project near Croydon in north-west Queensland, creating a single supply chain from extraction to anode production. In a statement, the Queensland Government said the project had been designated a Prescribed Project in 2025 to streamline approvals and support investment, with more than 200 jobs expected.
The development comes as global graphite supply expands. According to GlobalData’s Global Graphite Mining to 2035 report, natural graphite production is projected to rise by 25.1% in 2026 to approximately 2.1 million tonnes, following output of around 1.7 million tonnes in 2025 . Over the longer term, production is forecast to grow at a compound annual rate of 9.8% to reach about 4.9 million tonnes by 2035 .
A Letter of Interest from the Export-Import Bank of the United States (EXIM) for $1.3bn supported the project, which the state government described as the largest single commitment under the US–Australia Critical Minerals Framework.
Queensland Premier David Crisafulli said the state was positioned to advance projects aligned with international funding. “The US has opened the door, and Queensland is ready to walk through it with shovel-ready critical minerals projects,” he said.
GlobalData’s report indicates that supply remains concentrated, with China accounting for 74.9% of global graphite production in 2025, although its share is expected to decline to 29.6% by 2035 as new producers emerge . Australia is forecast to increase its share of global output to around 7.4% over the same period .
Queensland Minister for Natural Resources and Mines Dale Last said the project demonstrated the state’s ability to produce higher-value materials, describing it as an example of “pit-to-processing-to-product”.
Demand for graphite is being driven by battery manufacturing. GlobalData’s report notes that electric vehicle sales exceeded 35.8 million units in 2025 and are expected to reach 40.8 million in 2026, supporting continued growth in lithium-ion battery supply chains .
Graphinex managing director Art Malone said the Townsville facility established “a fully integrated, secure pathway from resource to advanced manufacturing”.
The Queensland Government is seeking federal support for additional projects, including upgrades to the Mt Isa rail line, expanded processing capacity in Townsville, pilot programmes in Mackay, and increased tungsten production at Mt Carbine.
