International Graphite (ASX: IG6) Finalises Land Purchase for Collie Processing Facility

International Graphite Limited (ASX: IG6) has, in a recent ASX announcement, confirmed the completion of its industrial land purchase in Collie, Western Australia, advancing plans for the International Graphite Collie Facility. This milestone positions the company to develop Australia’s first commercial-scale graphite micronising operation, addressing a critical gap in domestic processing capability as manufacturers actively seek alternatives to overseas supply chains.

The company acquired three lots totalling 6,000 square metres in the Collie Light Industrial Area from DevelopmentWA, the Western Australian Government’s central development agency. The land parcel is located directly opposite IG6’s existing R&D facility, which currently houses Australia’s first pilot graphite micronising plant.

This settlement transitions the project from a planning phase to a construction-ready status. Western Power has approved the essential power supply, and a development application is in its final stages with the Shire of Collie. Furthermore, major plant and equipment items have been ordered, with designers working to finalise detailed facility specifications.

The timing positions IG6 as a pioneer in Australia for commercial-scale graphite processing. The company is among the first businesses to establish operations in the new industrial precinct, developed by the Western Australian Government to attract new industry and support regional economic diversification.

CEO Andrew Worland highlighted the opportune timing of this investor update: “The International Graphite Collie Facility is coming online at a pivotal moment for global graphite supply. Interest from manufacturers has been strong, with many seeking reliable alternatives to tenuous overseas supply. Several companies are now assessing our products.”

The land acquisition validates IG6’s timeline towards commercial production and represents a critical inflection point as the company moves from research and development to revenue-generating operations. The location in a government-supported precinct demonstrates alignment with Australia’s Critical Minerals Strategy, positioning the company to capture value from the growing demand for supply chain sovereignty.

What is Graphite Micronising and its Industrial Role?

Graphite micronising involves reducing graphite to ultra-fine particles, typically between 1 and 10 microns in size. These particles are essential for industrial applications including batteries, lubricants, refractories, and advanced materials where particle size distribution directly affects product performance and consistency.

Different applications require specific particle sizes to meet customer specifications and achieve desired material properties. For instance, battery manufacturers require precisely controlled particle distributions to optimise electrode performance. Lubricant producers need specific surface characteristics dependent on particle geometry, while refractory applications demand particular thermal properties linked to particle structure.

Australia currently produces graphite ore but lacks domestic processing capacity. Raw material is typically shipped overseas for processing and then re-imported as a finished product. This creates supply chain vulnerabilities and limits the value captured from Australian resources, with most margin accruing to offshore processors.

The International Graphite Collie Facility represents a significant scale-up from pilot operations at IG6’s existing R&D facility. The pilot plant has operated since 2023, enabling product development, customer sample production, and process optimisation. However, commercial volumes for market supply require dedicated infrastructure on a larger scale.

Global graphite processing is concentrated in China, which controls approximately 70% of the world’s micronised graphite supply. This concentration creates supply chain vulnerabilities for Western manufacturers, particularly in battery materials and defence applications where supply security is paramount. Geopolitical tensions and export restrictions have heightened awareness of these risks, driving manufacturers to actively seek non-Chinese suppliers.

Key terminology for investors:

• Micronising: A mechanical process that reduces graphite to ultra-fine particle sizes required for industrial applications.
• Flake Graphite: Natural crystalline graphite extracted from ore, which requires processing before industrial use.
• Downstream Processing: Value-added manufacturing steps that convert raw materials into finished products.
• Vertical Integration: Controlling multiple stages of the supply chain from raw material to finished product.

IG6’s vertical integration plan—controlling the supply chain from mine to finished product—aims to create competitive advantages beyond simple margin capture. Integrated operations enable quality control throughout production and the ability to optimise the entire value chain.

Why Does Collie Offer Key Advantages for Graphite Processing?

Collie is a recognised WA Super Town, a designation given by the Western Australian Government to towns identified for major future growth. The town serves as a significant base for industrial activity in the state’s south-west region, with established infrastructure supporting manufacturing operations.

The Collie Light Industrial Area is a new precinct developed by DevelopmentWA to attract industry and support economic diversification. The International Graphite Collie Facility is among the first operations to establish in this precinct, positioning the company as an anchor tenant in a growth area.

The location offers several key advantages that reduce capital requirements and operational costs. Power infrastructure is already established, with Western Power having approved the facility’s essential power supply. Industrial power availability often represents a major bottleneck for processing facilities, making this approval valuable.

Road and rail connectivity supports logistics for both raw material inputs and finished product distribution. The site provides access to Perth and port facilities through existing transport networks, removing the need for costly infrastructure development. Proximity to multiple transport modes creates operational flexibility and competitive freight options.

The site’s position directly opposite IG6’s existing R&D facility enables operational synergies. Staff, equipment, and technical knowledge can be shared between the pilot plant and the commercial facility, reducing costs and facilitating technology transfer. This proximity creates an integrated campus approach to graphite processing.

Andrew Worland noted the land value implications: “Premium land in WA’s south-west is becoming scarce. In developing this site we expect to generate value well above the capital invested.” This reflects growing industrial demand in the region as manufacturers seek alternatives to high-cost metropolitan locations.

How Does Government Support Bolster the Project?

The Western Australian Government has provided a $12.5 million package of grants over the past three years to progress the development of IG6’s Collie and Springdale projects. This public investment signals government confidence in the importance of domestic graphite processing.

This support aligns with Australia’s Critical Minerals Strategy, which prioritises downstream processing to capture more value from mineral resources. Both federal and state governments have identified graphite as a critical mineral essential for battery supply chains and key industries, creating policy frameworks that favour domestic processing development.

DevelopmentWA’s role in developing the Collie Light Industrial Area and facilitating the land sale to IG6 reflects a government commitment to establishing domestic graphite processing capability. This involvement indicates the project is part of a broader industrial plan to diversify Western Australia’s economy.

Andrew Worland acknowledged the partnership: “The State Government has taken a very well-considered position and has played a key role in the progress we have made to date.” This reflects recognition that government support extends beyond financial assistance to include regulatory facilitation and infrastructure coordination.

Recent supply chain disruptions have heightened awareness of manufacturing sovereignty risks, particularly for materials essential to the energy transition. By supporting the International Graphite Collie Facility, the government is actively fostering a more resilient domestic supply chain for this critical mineral.

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