International Graphite is set to develop an expandable graphite processing facility (EGF) in Europe, with Germany being the preferred location.
Expandable graphite is produced when natural flake graphite is treated with intercalating agents. It is commonly used as a flame retardant in construction materials, as insulation in electronics, and in batteries and green steel electrodes.
In recognising the importance of expandable graphite across several industries, International Graphite has signed a cooperation agreement with Arctic Graphite and Graphite Investment Partners for the EGF’s development.
The EGF will target a production rate of around 3000 tonnes per annum and a target capital cost estimate of €5 million ($8.9 million). It is expected to be operational in 2027.
It will become International Graphite’s second downstream graphite processing facility, following its commercial micronising facility in Collie, Western Australia, which is anticipated to be operational in late 2026.
“Successful execution of the development, financing, construction and operations phases of the EGF and our Collie micronising facility (where construction activities have commenced) would see our company operating two production centres capable of producing approximately 10,000 tonnes per annum of graphite products,” International Graphite managing director and chief executive officer Andrew Worland said.
As per the agreement, International Graphite will manage the technical, commercial, economic and environmental assessment of the EGF’s development, construction and operation. Technical specialists ProGraphite and Hensen will provide expertise.
The assessment will be based on third-party feedstock. Subject to the assessment’s results, International Graphite and Arctic Graphite will form a 50:50 joint venture to finance, build and operate the EGF.
Graphite Investment Partners, a key shareholder of Arctic Graphite, has agreed to cover at least 50 per cent of the EGF’s capital cost estimate. It has issued International Graphite a non-binding letter of interest to arrange up to $10 million in funding.
“Graphite is subject to supply disruption as much as any other commodity,” Graphite Investment Partners principal Aidan Nania said.
“The demand fundamentals for expandable graphite are compelling. There is little or no production of expandable graphite in the EU (European Union), although the EU accounts for approximately 30 per cent of global consumption outside China.
“We are very pleased to progress our EGF project with International Graphite, who bring a range of synergies to assist in capturing the market opportunity for domestic production of expandable graphite in Europe.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
