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

International Graphite Limited (ASX: IG6), in a recent investor update, has announced the finalised purchase of land for its planned micronising facility, a pivotal step towards establishing Australia’s first commercial-scale graphite micronising operation. The acquisition of a 6,000 square metre site in the Collie Light Industrial Area from DevelopmentWA de-risks the company’s pathway to generating revenue.

This strategic land purchase positions the company to transition from pilot-scale research to commercial production, directly addressing a critical gap in Australia’s battery materials supply chain.

Company Financial Metrics

Key Details of the Land Acquisition

The purchased parcel comprises three lots located directly opposite IG6’s existing R&D facility. This proximity is expected to create significant operational synergies by enabling shared infrastructure and streamlining logistics between research and commercial operations. Consequently, this arrangement helps to reduce capital expenditure and facilitates a seamless transfer of technology from the established pilot plant to the new full-scale production line.

Project readiness is advancing, with Western Power having approved the essential power supply infrastructure. Furthermore, a development application submitted to the Shire of Collie has reached its final stages, and major plant and equipment items have been ordered. The company has confirmed that the land acquisition cost is in line with the capital estimates published in its Front End Engineering Design (FEED) Study from March 2024, indicating disciplined financial management.

What is the strategic importance of the Collie location?

The site for the International Graphite Collie Facility is situated in Western Australia’s south-west, a region designated by the State Government as a “Super Town” for future industrial growth. Collie is evolving into a hub for advanced manufacturing and critical minerals processing, with recent developments including a pilot magnesium production plant and plans for a low-emissions steel mill.

This industrial clustering provides several advantages, including access to skilled labour pools, shared supply chain infrastructure, and government investment in regional services. The location’s proximity to IG6’s Springdale graphite project also adds logistical efficiency, creating a secure feedstock source and reducing transport costs.

“Premium land in WA’s south-west is becoming scarce. In developing this site we expect to generate value well above the capital invested,” said Andrew Worland, Managing Director and Chief Executive Officer.

Why is a domestic micronising facility important for Australia?

Australia possesses significant natural graphite resources but lacks the commercial-scale processing capacity to convert this ore into battery-grade material. This dependency creates a strategic vulnerability, particularly as global graphite processing is heavily concentrated in China, which controls approximately 70-80% of the market. The establishment of a domestic micronising facility is critical for building a resilient local battery supply chain.

Graphite micronising is an essential intermediate step that refines natural graphite flakes into the ultra-fine particles (typically below 20 microns) required for manufacturing lithium-ion battery anodes. By developing this capability onshore, Australia can reduce its reliance on international supply chains and add significant value to its raw mineral exports.

The project has received substantial backing from the Western Australian Government, which has provided $12.5 million in grant funding over three years to support the development of IG6’s Collie and Springdale projects.

How will the Collie facility integrate with IG6’s strategy?

The International Graphite Collie Facility is a crucial component of the company’s vertically integrated business model. It is designed to function as the central link between the upstream mining operations at the Springdale project and downstream value-added product manufacturing, such as the company’s planned expandable graphite facility in Germany.

This strategy allows IG6 to capture margin across multiple stages of the value chain, transitioning from a commodity ore producer to an integrated manufacturer of high-value graphite products. The operational success of the adjacent R&D pilot plant has already validated the company’s processing technology and demonstrated product quality, reducing the technical risk associated with scaling up to commercial production.

“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.

By establishing the International Graphite Collie Facility, the company is positioned to meet the increasing demand from battery and electric vehicle manufacturers for a secure, transparent, and ethically sourced supply of critical battery materials outside of existing dominant networks.

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