Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) announced that its board has approved A$1.2 million in capital expenditure to advance the next stage of design, engineering and long-lead procurement for its planned next-generation graphene manufacturing facility.
The company said the funding will support feasibility-level design, engineering work and procurement activities for its planned "Fulcrum" facility, which will be located at a newly leased warehouse in Richlands, Australia, near its existing headquarters and Gen 2.0 production plant.
GMG said the new facility is intended to modularize its recently commissioned Gen 2.0 plant and support its strategy of developing what it describes as a "Factory for Graphene Factories."
The planned facility will include an area to assemble Graphene Modular Production Units (MPUs) as well as an operating area capable of housing up to five Gen 2.1 MPUs, each with an estimated production capacity of up to 20 tonnes of graphene per year.
Once fully completed and optimized, the Fulcrum facility is expected to have annual production capacity of up to 100 tonnes of graphene. GMG said the site is also designed to assemble and commission up to 12 additional MPUs annually, representing a further 240 tonnes of annual graphene production capacity that could be deployed elsewhere.
The company said the project is expected to take several years to complete, with future funding and operational milestones subject to separate board approvals. GMG added it continues to optimize its Gen 2.0 plant for graphene quality, production rates, packaging and self-power generation, with that work expected to continue through the end of 2026.
GMG also said it is evaluating locations and conducting regulatory approval studies for potential graphene production facilities in the United States and Canada. Under its current plans, modular production units would be assembled and commissioned at the Fulcrum facility before being relocated to North America for commercial operations.
GMG CEO Craig Nicol said the investment marks the next phase of the company's production scale-up strategy, with the Fulcrum facility intended to support modular manufacturing and future international deployment.
“The Fulcrum Facility is intended to become the hub for assembling and commissioning Graphene MPUs, enabling us to accelerate capacity growth while maintaining quality and cost discipline,” Nicol said.
“At the same time, we are progressing optimisation of our existing operations and preparing for expansion into North America, positioning GMG to meet increasing demand across our energy savings and energy storage product lines."
GMG chairman Jack Perkowski said the board's approval reflects confidence in the company's modular manufacturing approach and long-term expansion plans, adding that the facility is designed to support scalable graphene production and international growth.
“By combining modular production, efficient capital deployment, and increasingly self-powered energy systems, GMG is building a platform that can support disciplined expansion into key global markets,” Perkowski said.
“We believe this approach strengthens our ability to deliver sustainable growth and long-term value for shareholders."