International Graphite (ASX: IG6) Announces Land Purchase for Collie Micronising Facility
International Graphite Limited (ASX: IG6) has announced the successful purchase of industrial land in Collie, Western Australia. This ASX announcement marks a pivotal step toward establishing Australia’s first commercial-scale graphite micronising facility. The International Graphite Collie Micronising Facility represents a key transition from research and development to commercial production, aimed at addressing vulnerabilities in the global battery materials supply chain.
In a recent investor update, the company confirmed it secured three lots totalling 6,000 square metres in the Collie Light Industrial Area from DevelopmentWA, the state government’s central development agency. The land is strategically located directly opposite IG6’s existing research and development facility, which currently houses Australia’s first pilot-scale graphite micronising plant.
The acquisition cost was in line with the capital cost estimate published in the FEED Study announcement of 20 March 2024, indicating the project is tracking to budget. With major equipment already on order, power supply approved by Western Power, and the development application in its final stages with the Shire of Collie, the project is progressing swiftly from planning to the construction phase.
The Western Australian Government has provided $2 million in grants to support the development of IG6’s Collie operations, validating the strategic importance of building a domestic graphite processing capability.
“The Collie Micronising 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,” said Andrew Worland, Managing Director and CEO.
Why is the International Graphite Collie Micronising Facility strategically significant?
The facility addresses a critical bottleneck in the global battery materials supply chain. Graphite micronising—the process of reducing natural graphite particles to the extremely fine, consistent sizes required for lithium-ion battery anodes—is a market currently dominated by Chinese producers.
This concentration creates a strategic vulnerability for battery and electric vehicle manufacturers seeking to diversify their supply chains. Furthermore, the Collie facility enables Australian domestic processing capability, which is expected to capture significantly higher margins compared to the sale of raw flake graphite.
The transition from pilot-scale research to commercial production represents substantial de-risking for the investment case. IG6 has successfully validated the micronising process at a pilot scale before committing to commercial infrastructure, which reduces the execution risk typically associated with process scale-up.
Strategic advantages include:
- Diversification from Chinese-dominated processing capacity
- Premium margins from value-added processing versus raw material sales
- Proven technical capability demonstrated at pilot scale
- Integrated supply chain from mine to processed product
- Government-backed development reducing infrastructure risk
Where exactly is the new graphite facility located?
The facility will be located in Collie, Western Australia, a town designated as a “Super Town” by the WA Government and earmarked for major future growth and industrial activity. Collie is recognised for its significant industrial base and strategic importance to the state’s economic transformation.
The new Collie Light Industrial Area has been specifically developed by DevelopmentWA to attract industry and support economic diversification. The strategic positioning of the commercial facility directly opposite the existing research and development plant is anticipated to provide operational synergies and reduce technical risk during scale-up.
| Collie’s Strategic Advantages | Benefit to International Graphite |
|---|---|
| Government-backed industrial precinct | Reduced regulatory and infrastructure risk |
| Established industrial infrastructure | Lower capital requirements for essential services |
| Proximity to existing R&D facility | Operational efficiency during scale-up phase |
| Complementary industrial developments | Shared infrastructure and skilled workforce access |
| WA Super Town designation | Long-term government commitment to regional growth |
This clustering of advanced manufacturing creates infrastructure synergies, including shared logistics, utilities, and access to a specialised workforce, that benefit all operators in the precinct.
“The State Government has taken a very strategic position and has played a key role in the progress we have made to date. Premium land in WA’s south-west is becoming scarce. In developing this site we expect to generate value well above the capital invested,” added Andrew Worland.
What technical processes will the micronising facility perform?
Graphite micronising is the process of reducing natural graphite particles to extremely fine and consistent sizes required for advanced industrial applications, particularly lithium-ion battery anodes. The process typically reduces particles to under 20 micrometres while maintaining a consistent particle size distribution.
For battery manufacturers, particle size consistency directly affects battery performance and reliability. The Collie plant will produce material designed to meet the stringent specifications required for battery-grade applications.
Critical quality parameters include:
- Particle size distribution (PSD): Measurement of particle size consistency.
- Crystallinity preservation: Maintaining graphite’s layered structure.
- Purity levels: Minimising contamination.
- Surface area characteristics: Controlling properties affecting electrochemical reactions.
Essential power supply has been approved by Western Power, eliminating a major infrastructure risk. Securing this approval before construction commences significantly reduces project execution risk.
What is the development timeline for the project?
The project has now reached construction readiness, with multiple concurrent workstreams advancing toward facility commissioning. The company has achieved key milestones, including the acquisition of land, procurement of major equipment, and securing approvals for power supply.
With these critical elements in place, the focus now shifts to finalising the development application with the Shire of Collie to enable the commencement of construction. Management expects to provide a more detailed project timeline in a future investor update as final development approvals are received and the construction schedule is confirmed.
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