How International Graphite Plans to Build a Global Graphite Empire by 2027

A Global Graphite Vision

International Graphite Limited (ASX, IG6) is positioning itself as a vertically integrated player in the industrial graphite sector, aiming to deliver production and cashflow by 2027. Central to this vision is the development of a world-class graphite mine in Western Australia alongside downstream processing capabilities both domestically and in Europe.

The company recently announced a 50% joint venture with Arctic Graphite and Norwegian mining contractor Leonhard Nilsen & Sonner AS to establish an expandable graphite plant in Germany. This facility targets an initial output of approximately 3,000 tonnes per year by 2027, with a capital expenditure of around €5 million (A$9 million). The JV brings together industry leaders and leverages proven processing technologies to serve the growing European market, which currently imports the majority of its 100,000–120,000 tonnes annual graphite consumption.

Expanding Domestic Processing Capacity

Back in Australia, International Graphite is expanding its Collie micronising and spheroidising facility, aiming to nearly double output from 4,000 to 7,500 tonnes per year. This expansion, split into two stages with a combined CAPEX of $8 million, is expected to boost annual revenue from $14.1 million to $28 million and improve internal rates of return from 43% to 72%. The Collie facility, Australia's first commercial graphite processing and R&D plant, has been operational for several years and is certified to ISO 9001, 2015 standards.

Springdale, A World-Class Mining Asset

At the heart of International Graphite’s upstream strategy is the Springdale Graphite Project in Western Australia. The project boasts a substantial mineral resource of 28 million tonnes at 9% total graphitic carbon, with a scoping study estimating a capital cost of A$76 million and an annual concentrate output of 46,000 tonnes. Testwork confirms battery-grade purity exceeding 99.95%, positioning Springdale as a critical supplier for lithium-ion battery anode materials. A memorandum of understanding with Japan’s Marubeni Corporation further underscores the project's strategic importance.

Market Dynamics and Supply Chain Risks

The graphite market is experiencing rapid growth, driven by a 15-25% increase in electric vehicle and energy storage demand projected through 2035. However, supply chains remain vulnerable, with China dominating over 75% of graphite mining and processing. Recent geopolitical developments; including export restrictions by China, US tariffs on Chinese anode materials, and supply disruptions in Africa; have heightened the urgency for secure, tier-one jurisdiction sources like those International Graphite is developing.

International Graphite’s strategy to integrate mining, processing, and high-value product manufacturing across Australia and Europe aims to capture premium pricing and mitigate supply risks. The company has secured over $30 million in potential funding from government grants, US Department of Defense submissions, and investment partners, supporting its ambitious growth plans.

Looking Ahead

With production targets set for 2027 and a clear path to becoming a global mine-to-market graphite company, International Graphite is leveraging its operational expertise, strategic partnerships, and tier-one assets to meet growing industrial and battery market demands. Execution risks remain, but the company’s integrated approach and diversified funding sources position it well to capitalize on the evolving graphite landscape.