Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) announced that it has approved funding to move forward with early-stage development of its next-generation graphene production facility in Queensland, Australia.
The company’s board has approved an investment of A$900,000 for the early works of its proposed Gen 2.0 Graphene Manufacturing Technology plant, which is expected to cost approximately A$2.3 million in total.
The funding, secured via GMG’s C$5.8 million bought deal financing in March 2025, will support initial engineering, design, and procurement of long lead items.
"We are very excited to move ahead with our next generation technology for graphene production - it is a significant milestone for the company,” GMG managing director Craig Nicol said.
“We expect to see better quality graphene at even lower costs and much higher production rates."
The Gen 2.0 Plant will be located at GMG’s existing natural gas-to-graphene facility in Richlands, a suburb of Brisbane.
GMG aims to bring the plant online by June 2026, initially producing up to one tonne of graphene annually. Production is expected to scale to 10 tonnes per year following upgrades to the plant’s packaging systems.
The facility will feature advanced automation and be largely powered by renewable energy, supported by energy storage and hydrogen-enriched tail gas generation.
The plant will utilize an enhanced version of GMG’s proprietary plasma technology, which has underpinned its graphene production for over seven years. This upgraded system is projected to deliver up to 20 times the output per unit compared to earlier versions, while significantly lowering both capital costs and production expenses.
The facility is expected to meet different graphene requirements for GMG’s various products, including THERMAL-XR, G LUBRICANT, SUPA G, and the Graphene Aluminium-Ion Battery.
GMG sees the potential to deploy similar plants internationally, particularly in regions like North America, where low-cost natural gas is readily available.
"This is the next exciting step before we look to expand to likely North American-based expansion plants, where ‘cookie-cutter’ projects can be rolled out with only minor changes for production expansion with lower-cost gas and other benefits being in the North American market,” GMG chairman Jack Perkowski said.
Shares of GMG moved nearly 6.4% higher in early Toronto trade, reaching around C$0.67.