Greenwing Resources Advances Graphmada Expansion Amid Global Graphite Supply Shifts

Proven Asset Poised for Growth

Greenwing Resources Ltd (ASX, GW1) has taken a significant step forward with the commencement of a Stage 2 Scoping Study for its 100%-owned Graphmada Graphite Mine in Madagascar. This advanced asset, which holds a fully permitted mining lease and a proven production record, is being evaluated for a potential restart and expansion. The study will leverage existing infrastructure and the company’s substantial mineral resource base to explore pathways for increased output.

Graphmada has a history of producing graphite concentrates that meet all commercial specifications, with successful exports to key markets including the United States and the European Union. The mine’s previous production included a diverse range of graphite flake sizes, from super jumbo to fine flake suitable for battery anodes, underscoring its versatility and market relevance.

Resource Growth and Market Opportunity

Since its initial development phase, Greenwing has materially increased the Graphmada Mineral Resource to 61.9 million tonnes at 4.5% fixed carbon, as reported in a 2022 update. The Stage 2 study aims to target a larger-scale operation with a roughly equal split between fine and large flake graphite products, responding to evolving market demands.

The timing of this expansion is critical. Global demand for battery-grade graphite is projected to surge by over 230% by 2034, driven by the electrification of transport and energy storage technologies. Meanwhile, supply outside China is expected to fall short from 2027 onwards, creating a strategic imperative for diversified sources.

Strategic Importance Amid Geopolitical Shifts

Graphmada’s strategic value is heightened by tightening export controls and tariffs on graphite from dominant suppliers, particularly China. The U.S. government’s imposition of a 93.5% tariff on Chinese anode materials and the European Union’s Critical Raw Materials Act, which limits single-country dependence, highlight the urgency of securing alternative graphite supplies.

Greenwing is actively pursuing funding subsidies from the EU, Japan, and other government agencies that prioritize critical mineral supply chain diversification. This aligns with the classification of graphite as a critical mineral by these jurisdictions, positioning Graphmada as a potential cornerstone in the global battery materials supply chain.

Financial and Operational Progress

To support its development plans, Greenwing has generated approximately AUD 150,000 from the sale of surplus equipment and continues to monetize excess plant and spare parts. These efforts bolster the company’s balance sheet as it advances the scoping study and engages with potential strategic partners and offtake groups seeking non-Chinese graphite sources.

Executive Director Peter Wright emphasised Graphmada’s unique status as a fully permitted, past-producing asset with a clear pathway to market. The company’s next steps include completing the Stage 2 Scoping Study, ongoing equipment sales, and deepening engagement with stakeholders to secure funding and commercial agreements.