International Graphite Ltd (ASX:IG6) has taken a major step forward, not only for its own mine-to-market battery manufacturing ambitions but for the Australian graphite and critical mineral industry at large, with the wet commissioning of its new graphite micronising plant yesterday at Collie, south of Perth in Western Australia.
"Congratulations to International Graphite on this important next step,” State Premier of Western Australia Roger Cook said.
"It's great to see how funding through the State Government's Collie Futures Fund is encouraging businesses like International Graphite to choose Collie as a base.
"As part of a Just Transition, my Government is committed to working with the community and industry to set up Collie for a strong future, and create quality local jobs across a range of industries."
An Australian first
The battery qualification-scale microniser at IG6’s Collie plant is the largest in Australia, boasting a capacity of 200 tonnes per annum.
It will be the first microniser to produce graphite products in Australia for customer acceptance testing, marking an exceptionally important moment of growth in Australia’s domestic graphite processing capacity.
“We are delighted to have successfully produced commercial-grade micronised products from this new facility, the first of its type in Australia,” International Graphite managing director and CEO Andrew Worland said.
“We see commercial micronising as an important initial step in our strategy to produce advanced battery anode materials at Collie using concentrate feed from our 100%-owned Springdale Graphite Project, near Hopetoun in Western Australia.
“Micronising graphite, initially using third-party concentrates, will enable the company to develop a customer base, gain operating experience, build markets for future by-products, and generate cashflow ahead of the launch of the proposed integrated Springdale-Collie operations.”
CEO and managing director Andrew Worland presented to the public and stakeholders at the Collie plant commissioning yesterday.
From mine to market
International Graphite has a plan – it’s leveraging its exceptional Springdale graphite asset combined with the team’s extensive understanding of the critical mineral and the newly built Collie processing plant to offer a fully integrated battery-grade graphite supply chain within Australian shores.
The Springdale Graphite Project, which boasts a mineral resource estimate of 49.3 million tonnes at 6.5% total graphitic carbon (TGC), is the second-largest graphite deposit in Australia.
Exploration at Springdale has been limited to about 10% of the tenement areas so far, meaning the project has plenty more potential for growth despite its already massive size.
That sizable resource will eventually feed the micronising plant at Collie, where the company will produce micronised graphite usable in everything from lubricants, polymers, plastics and ceramics to lightweight structural materials and fire-resistant building materials.
Building the batteries of tomorrow
As well as being a critical component of lithium-ion battery cathodes, micronised graphite is also a precursor for anode material in battery-powered technologies, particularly electric vehicles and green energy storage.
Lithium-ion batteries consist of large amounts of graphite by weight, using up to ten times more graphite than lithium and generally requiring about 75 kilograms per standard electric vehicle.
Something like 90% of processed graphite currently originates from China. Given the country introduced export restrictions on graphite in December, a domestic supply is more vital than ever.
International Graphite’s new plant is the pilot for a commercial micronising facility that will have a capacity twenty times greater, capable of micronising 4,000 tonnes of graphite per annum.
IG6 plans to be operating the commercial-sized plant at Collie within 18 months, expecting to spend about $12.5 million on a plant that could be green lit as early as the middle of this year.
Placing Australia at centre of critical minerals boom
International Graphite’s ambition to create a fully integrated graphite supply from Western Australia would be the first of its nature in the Western world, offering Australia and specifically Western Australia a competitive advantage during a time of rapidly growing demand.
“We see breaking into the micronised graphite market as an important step in developing our Springdale – Collie mine to market strategy,” Worland said.
“Demand for batteries will continue to grow. There are already more than 240 battery gigafactories operating worldwide and up to 400 expected to open by 2030.
“All of them will need a secure source of graphite materials.
“Australian companies like us are in the box seat to deliver. We have the assets, the technical capability and Western Australia has an unparallelled reputation as a top resource supplier with outstanding ESG credentials.”
The company’s determination has drawn high levels of support from both the Western Australian and Federal Australian governments, as the most western state attempts to transition away from its reliance on coal, and Australia at large recognises the immediate importance of critical mineral security.
Together, Australian governments have contributed $6.7 million in grant funding to IG6 so far.
Yesterday, 30 industry and government representatives from around Western Australia visited the Collie facility to view the new equipment.
"This is an exciting milestone for International Graphite, and an exciting signpost in Collie's journey as we build resilience through economic diversification,” Regional Development Minister for Western Australia Don Punch said.
"The Cook Government is investing in new and emerging industries in Collie to create job and training opportunities for local people across a range of industries, ensuring a strong future for the community."
Main image: A sample of IG6's micronised graphite at the Collie plant in Western Australia.