International Graphite Ltd has advanced its efforts to win US government backing for its integrated ‘mine to market’ graphite strategy, with positive US Department of Defense feedback on its proposal for up to US$7.5 million in feasibility study funding.
The company on Monday revealed that its white paper submission to the DoD’s Industrial Base Consortium (DIBC), titled “Addressing Shortfalls in the US Graphite Supply Chain and Defense Industrial Base,” has met the criteria for “award/basket consideration”.
While not a funding guarantee, the designation indicates the proposal has cleared an important hurdle and will now be evaluated for potential award.
Adding supply chain strength
The proposal seeks funding to support feasibility studies for International Graphite’s vertically integrated supply chain model, encompassing mining at the 100%-owned Springdale Graphite Project and downstream processing at its facility in Collie, Western Australia.
Managing director and CEO Andrew Worland said the proposal aligns with the US push to secure resilient supply chains for critical minerals, especially graphite, which is essential for electric vehicle batteries, defence technologies and energy transition industries.
“[The] USA is searching for quality critical minerals and is determined to lock in secure sources to meet projected commercial and defence demand,” Worland said.
“It will be hard-pressed to find a more reliable source of graphite than Australia and, in particular, Western Australia,” he added. “It’s only natural that Australia and the US should cooperate to strengthen the critical minerals supply chain.”
Pivot from Chinese exports
International Graphite is positioning itself as a secure, ESG-focused supplier amid global concerns about overreliance on Chinese graphite exports. In October 2023, China imposed export permits on certain graphite products, further accelerating Western efforts to diversify supply.
The company’s operations are underpinned by its Springdale resource near Hopetoun, where recent drilling confirmed high-grade mineralisation, and by its advanced processing capability at Collie, which is ISO 9001:2015 certified and recently produced battery anode material samples for customer qualification.
A Front End Engineering and Design (FEED) study confirmed the viability of a 4,000 tonnes per year micronised graphite facility at Collie. With capital costs estimated at A$6.3 million, the project delivers a pre-tax net present value of A$25.8 million and a 43% internal rate of return.
The facility will process graphite for industrial and battery anode markets, and planning has commenced for potential capacity expansion.
Strategic partnerships
The proposal to the DoD was submitted under Open Announcement-24-01-064, which aims to bolster the US defence industrial base through strategic partnerships and funding opportunities. However, International Graphite noted the DIBC cautioned that positive feedback does not imply a funding commitment or signal the outcome of future solicitations.
International Graphite is listed on the ASX and the Frankfurt Stock Exchange and is a member of the European Battery Alliance and the European Raw Materials Alliance.
The company said it will continue to progress its mine-to-market strategy and keep the market informed of any material developments from the DIBC process.