International Graphite partners with Arctic Graphite and GIP to develop Germany-based expandable graphite plant to boost EU supply independence.
International Graphite Limited has formalized a Co-operation Agreement with Arctic Graphite AS, a Norwegian developer focused on critical minerals, and Graphite Investment Partners LLC (GIP) to establish a new expandable graphite processing facility in Germany. This collaboration aims to strengthen the European Union鈥檚 domestic graphite supply chain amidst increasing demand and growing concerns over import reliance, particularly from China.
Andrew Worland, Managing Director and CEO of International Graphite, welcomed the strategic alliance, emphasizing that the involvement of respected organizations such as LNS, ProGraphite, and Hensen validates International Graphite鈥檚 operational strengths and forward-looking strategy. He noted that the new partnership reflects a shared commitment to developing smaller, scalable projects with lower capital intensity in top-tier jurisdictions that can move swiftly into production and be expanded over time.
鈥淭he technical expertise, operational knowledge, financial capability, and deep graphite market experience of our partners mark a significant milestone,鈥� said Worland. 鈥淯pon successful implementation of this initiative, along with our under-construction Collie Micronising Facility in Australia, we anticipate producing a combined total of approximately 10,000 tonnes per annum of graphite-based products.鈥�
GIP Principal Aidan Nania highlighted the urgency of expanding production capacity in the EU. 鈥淭he risk of supply chain disruption in the graphite market is real, and expandable graphite demand is rising sharply. Despite the EU accounting for nearly 30% of global demand outside China, local production remains negligible. This project represents a crucial opportunity.鈥�
Expandable graphite is derived by treating natural flake graphite with chemical agents, enabling dramatic volume expansion when heated鈥攗p to 300 times its original size. This highly insulative and lightweight material is critical in applications such as flame retardants, thermal foils, and other industrial components. Currently, the majority of Europe鈥檚 requirements are met through imports, leaving the continent vulnerable to geopolitical and logistical risks.
The proposed facility, to be known as the Expandable Graphite Facility (EGF), will initially target a production capacity of around 3,000 tonnes per year. A capital cost estimate of 鈧�5 million has been outlined in a preliminary economic assessment conducted jointly by Arctic, ProGraphite, and Hensen. The project will rely on third-party feedstock to enhance flexibility and minimize development risks.
International Graphite will lead technical, environmental, and commercial assessments for the EGF, supported by ProGraphite and Hensen. Upon positive evaluation, a 50:50 joint venture between International Graphite and Arctic Graphite is planned for financing, construction, and operation.
GIP has committed to facilitating essential project deliverables including permitting, offtake agreements, and arranging non-dilutive funding for at least 50% of the capital cost鈥攃overing construction through to ramp-up at half capacity. Subject to shareholder approval and deliverable completion, International Graphite may issue equity equating to a 12.5% ownership stake in the company to GIP or its nominees.
Additionally, GIP has submitted a non-binding letter of interest to raise $10 million in funding for both the EGF and the Collie Micronising Facility. All financial support remains contingent upon due diligence and mutually agreed terms.
