International Graphite Ltd (ASX:IG6, FRA:H99, OTC:IGRPF) has moved to establish a European graphite processing hub in Italy through a joint venture with Alkeemia S.p.A., positioning the company to supply high-value graphite products into industrial, energy storage, advanced manufacturing and defence markets.
The company has entered a Joint Venture and Shareholders’ Agreement with Alkeemia, one of Europe’s leading chemical manufacturers, for a proposed graphite processing operation at Porto Marghera near Venice.
The project combines IG6’s graphite processing expertise with Alkeemia’s established industrial infrastructure, including land, utilities, warehousing, laboratory services, control rooms, permitting systems, logistics access and an operational workforce.
Agreement highlights
Under the agreement, Alkeemia will hold 51% of the joint venture and IG6 49%, while profit sharing will be split equally at 50% each.
IG6 said the project could form part of a new European critical minerals processing platform independent of China, with the proposed facility located alongside Alkeemia’s planned graphite purification operations.
IG6’s capital contribution is estimated at A$12 million for the initial stage of the project, which is designed to produce about 10,500 tonnes per annum of graphite products.
The evaluation outlined a 12-month snapshot based on current market conditions, not a financial forecast, showing IG6’s 50% share could equate to sales revenue of A$20.1 million, all-in sustaining costs of A$7.9 million and EBITDA of A$12.2 million.
The broader project figures were estimated at A$40.2 million in sales revenue, A$15.8 million in all-in sustaining costs and A$24.4 million in EBITDA.
All-in sustaining costs were estimated at A$1,510 per tonne, including feedstock, processing, maintenance, general and administration and sustaining capital.
Strategic location in Europe
The Porto Marghera site provides direct access to port, rail and road networks, with the facilities located close to container shipping berths, waste and water treatment plants and warehousing.
Graphite concentrate feedstock would be imported in 1-tonne bulk bags transported in 20-foot containers. The port currently handles about 350,000 containers per year, while the project would require up to 1,000 containers annually.
The use of Alkeemia’s existing site and operating platform is expected to provide capital and cost advantages over potential new entrants.
Alkeemia holds a 99-year lease on the operating site and has recently completed an about €80 million capital investment program to upgrade its hydrofluoric acid platform and add an additional HF production line.
Addressing Europe’s supply gap
The proposed development comes as Europe seeks to reduce reliance on Chinese graphite supply.
IG6 noted that almost all processed graphite consumed in Europe is imported from China, while the European Union’s Critical Raw Materials Act designates graphite as a Strategic Raw Material and targets 40% of EU consumption of strategic raw materials to be processed domestically by 2030.
The company said the planned facilities, together with Alkeemia’s purification plans, could provide European customers with more choice and supply chain certainty for high-purity graphite products.
Alkeemia is constructing a 200-tonne-per-year graphite purification pilot plant at Porto Marghera, with IG6 allocated 50% of the initial capacity for testwork.
Looking ahead, the company is targeting commercial purification output of 20,000 tonnes per year by 2030.
Testwork supports development plan
IG6's testwork had been conducted across a range of commercially available feedstocks using independent consultants, equipment suppliers and the company’s Collie R&D and Graphite Processing Facility in Western Australia.
More than 1,200 kilograms of graphite concentrate has been micronised at Collie, with testwork producing graphite products within target specifications for industrial applications and confirming operating conditions.
The work has informed flowsheets, material and energy balances, process descriptions, equipment lists and capital and operating cost estimates.
The first phase of the project is based on a fully enclosed production building, 2 micronising lines and 1 jet mill, with equipment selected to produce up to 10,800 tonnes per year.
A second phase, not included in the evaluation, could expand capacity to about 15,000 tonnes per year and is proposed to be funded from joint venture cash flow.
Funding pathway
IG6 said project financing discussions were ongoing with its corporate advisers, with a focus on project-level financing that minimises shareholder dilution.
The company is also investigating potential support from cornerstone investors, Italian Government sources, European Union critical minerals funding programs and strategic industry participants.
Alkeemia will contribute land access and manage or provide key site services including permitting, warehousing, laboratories, control rooms, waste management, logistics and operational workforce support.
What's ahead
The joint venture is targeting a final investment decision in Q3 2026, subject to funding and completion of required agreements.
Permitting is expected in the second half of 2026, construction is planned to start in Q3 2026 and first production is targeted for the second half of 2027.
IG6 said it would update the market as project financing arrangements are finalised.
About Alkeemia S.p.A
Alkeemia S.p.A. is one of Europe’s leading producers of hydrofluoric acid and fluoro derivatives, operating from its integrated production platform at Porto Marghera near Venice.
The company has recently completed an about €80 million capital investment program at the site and is developing graphite purification capability to support Europe’s emerging battery and critical minerals supply chains.