International Graphite has joined forces with Arctic Graphite AS – a subsidiary of Norwegian construction giant LNS – and Graphite Investment Partners to establish a new expandable graphite production facility in Germany.
The project will support Europe’s efforts to secure critical minerals in the face of rising geopolitical tensions and supply chain risk.
Graphite Investment Partners Principal Aidan Nania said: “Graphite is subject to supply disruption more than any other commodity. The demand fundamentals for expandable graphite are compelling. There is little or no production of this product in the EU which accounts for approximately 30 per cent of global consumption outside of China.”
GIP has committed to arranging funding for at least 50% of the estimated capital cost of the facility (approximately €5.0 million) and has issued a non-binding letter of interest to arrange up to $10 million in total funding.
The new plant is targeted to produce around 3,000 tonnes of product a year and to be operational in 2027.
International partners
The facility would be owned in a 50/50 joint venture between International Graphite and Arctic Graphite. Arctic’s shareholders include Leonhard Nilsen & Sonner AS (LNS) one of Norway’s biggest earthmoving and mining contractors with graphite experience as previous owner and operator of Norway’s Skaland graphite mine.
International Graphite will manage initial technical, commercial, economic and environmental assessment. Pending the outcome of the assessment, International Graphite and Arctic plan to form a joint venture to finance, build and operate the plant.
The development will also leverage the graphite processing and product marketing expertise of internationally renowned technical partners ProGraphite GmbH and Hensen Graphite and Carbon.
Hensen has expressed interest in becoming a shareholder in the plant, subject to due diligence and other procedures.
This will be International Graphite’s second processing facility and a key milestone in the Company’s global growth strategy to strengthen allied supply chains amid rising geopolitical risk and supply disruptions from China and Africa.
Mine to market supply
International Graphite has been piloting downstream graphite processing in Australia for the past six years and is currently building Australia’s first commercial graphite micronising plant at Collie, in Western Australia. The development has strong support from the Australian and Western Australian governments and is expected to commence production in 2027.
The company hopes to establish an international network of processing facilities that will ultimately produce a range of graphite products, from micronised and expandable to advanced battery anode material, using natural graphite from a mine at the Company’s 100% owned Springdale graphite resource, also in Western Australia.
International Graphite Managing Director and CEO Andrew Worland said the German agreement with Arctic and GIP, and the support of associates of the calibre of ProGraphite and Hensen, was a terrific endorsement of International Graphite’s strategy.
“Our partners have a deep knowledge of the European graphite market and supply chain. We all recognise the strategic advantage of establishing smaller scale, lower capital cost projects in tier one jurisdictions that can be brought to production quickly and developed with expansion capability.
“The new German plant gives us the opportunity to expand into Europe where the market is astutely aware of the benefits of investing in innovative industrial processing technologies and companies.
“The cashflow and market knowledge we will generate from the German plant, along with our Collie Micronising Facility, will springboard the Company’s growth into global graphite markets.”
Expandable graphite
Expandable graphite is used as a flame retardant in construction materials, as insulation in electronics, and in batteries and green steel electrodes. Demand is accelerating as fire safety, energy efficiency, and high-performance computing drive growth across key industries.