International Graphite Secures $12M Italian JV for European Graphite Processing Hub
International Graphite secures European foothold with Alkeemia joint venture
International Graphite Limited has entered a Joint Venture and Shareholders’ Agreement with Alkeemia S.p.A. to establish a graphite processing hub at Porto Marghera, Italy. The JV positions IG6 to access European supply chains with a capital contribution of A$12 million for a facility targeting 10,500 tonnes per year of graphite products.
Under the agreement, Alkeemia holds 51% equity and IG6 holds 49%, but profits are shared equally at 50% / 50%. This structure delivers IG6 equal profit participation despite its minority equity position. Based on current market conditions, IG6’s 50% share of projected EBITDA is $12.2 million annually, though the company stressed this is not a financial forecast.
The timeline targets a Final Investment Decision in Q3 2026, with construction planned to commence the same quarter. First production is targeted for H2 2027, positioning IG6 for revenue generation within 18 months of FID.
IG6 described the opportunity as integrating new graphite processing facilities at Alkeemia’s tier-one industrial site presenting a unique opportunity to establish a highly capital-efficient, low-cost graphite processing operation that would be the centrepiece of a new domestic graphite supply chain for Europe.
The capital efficiency underpinning the transaction derives from Alkeemia’s contribution of existing infrastructure, including land access, warehousing, control rooms, laboratory services, and utilities. IG6’s $12 million cash commitment focuses exclusively on direct production equipment rather than site establishment costs, which would typically represent a significant proportion of total capex for a greenfield processing facility.
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Why graphite processing matters for European supply chains
Graphite processing transforms natural flake graphite into micronised products through hammer and jet milling. The process creates fine particle sizes suitable for industrial applications, energy storage systems, and specialised manufacturing. Almost all processed graphite consumed in Europe is currently imported from China.
China’s December 2023 export restrictions on graphite sharpened European awareness of supply chain concentration risk. The European Union responded by designating graphite as a Strategic Raw Material under the Critical Raw Materials Act (CRMA), which came into force on 23 May 2024.
The CRMA sets a target for 40% of EU consumption of strategic raw materials to be processed domestically by 2030. This regulatory shift creates structural demand for non-Chinese graphite processing capacity within European borders. Projects that meet CRMA requirements may access preferential treatment in government procurement and qualify for strategic funding programs.
The Porto Marghera facility is positioned to benefit from this policy-driven purchasing environment. Co-location with Alkeemia’s planned purification capability creates a vertically integrated hub that can supply both standard and high-purity graphite products from a single European site.
Porto Marghera delivers infrastructure advantages
Porto Marghera industrial port is located 15km west of Marco Polo airport with integrated road and rail networks. The site provides direct access to container shipping berths, with the port handling approximately 350,000 containers annually. The Project would receive up to 1,000 containers per annum, representing feedstock imports and product dispatch.
Alkeemia contributes existing infrastructure to the JV, including warehousing, control rooms, laboratory services, and utilities. The company holds a 99-year land lease (ending approximately 2117) on peppercorn terms, which will be mirrored in the JV Land Provision Agreement. This removes land acquisition and site establishment costs from IG6’s capital requirement.
| Infrastructure Element | Contribution |
|---|---|
| Land lease | 99-year lease (to ~2117), peppercorn terms |
| Permitting | Within established HF chemical platform |
| Workforce | Existing management, limited new hires |
| Port access | Direct link to container berths |
| Support services | Warehousing, labs, utilities included |
Graphite operations will be conducted within Alkeemia’s fully established HF chemical manufacturing platform, which operates under rigorous permitting compliance. This existing regulatory framework reduces permitting risk for the graphite facility. Permitting is expected to be achieved in H2 CY2026.
Existing senior management and skilled operations personnel are available to the JV with limited new hires required. Construction capability exists within Alkeemia’s workforce, and relationships are in place with construction firms familiar with the site that can mobilise quickly.
Alkeemia brings chemical expertise and purification capability
Alkeemia S.p.A. is one of Europe’s leading producers of hydrofluoric acid (HF) and fluoro derivatives. The company employs more than 100 people and has recently completed a major capital investment program of approximately €80 million to upgrade the HF platform at Porto Marghera and add an additional HF production line.
HF is the dominant, commercially proven purification reagent used to produce high purity graphite from natural graphite, including to battery grade. Alkeemia’s HF production capability creates a strategic vertical integration opportunity for graphite purification at the same site.
Recognising growing demand for high purity graphite, Alkeemia is currently constructing a 200t/y graphite purification pilot plant on the site. IG6 has been allocated 50% of the plant’s initial capacity for testwork. Alkeemia plans to grow its commercial purification business and is targeting 20,000t/y output by 2030.
The co-location of IG6’s processing with Alkeemia’s purification creates a vertically integrated platform that can offer customers both standard and high-purity products from a single European hub. This integrated model reduces logistics costs, shortens lead times, and provides optionality to respond to shifting demand across different purity specifications.
Production economics and capital efficiency
IG6’s total capital commitment to the Project is A$12 million, broken down as follows:
- Direct plant and equipment including freight, installation, growth allowance and contingency: $8.8M
- Construction management (EPC(M)), owners’ costs, first fills: $3.0M
- Other: $0.2M
- Total: $12.0M
The all-in sustaining cost at full production of 10,500t/y is estimated at $1,510 per tonne. This comprises feedstock at $1,263/t, processing at $133/t, maintenance at $12/t, general and administration at $77/t, and sustaining capital at $25/t.
Feedstock costs are based on direct quotes received in April 2026 across a range of flake graphite specifications sourced by established graphite trading firms from mining operations in five jurisdictions. Processing costs are calculated by reference to power consumption of installed equipment, estimated from testwork and vendor information, and the unit cost of power at Porto Marghera.
The facility design includes two lines of micronising equipment producing up to 700kg/hour of 45µm product each (approximately 4,700t/y per line), plus one jet mill producing up to 200kg/hour of 5µm product (approximately 1,300t/y). Equipment availability is estimated at 85%, with ramp-up to full production over 18 months.
The Project’s design allows for capacity expansion to 15,000t/y through a nine month construction period funded from Project cashflow. This second phase is not included in the current evaluation but provides a capital-efficient growth pathway without requiring external funding.
Market opportunity spans batteries and industrial applications
Global natural graphite demand has more than doubled in six years to reach approximately 1.3Mt/y by end of 2025. The split comprises approximately 675,000 tonnes (54%) for battery applications and approximately 580,000 tonnes (46%) for industrial applications.
Demand is estimated to double again to approximately 3.2Mt/y from 2026 to 2040. By 2040, Benchmark Mineral Intelligence estimates approximately 49% of total graphite supply will be sourced from outside of China, with Africa accounting for two thirds of this amount.
The Project’s feedstock requirement of 10,800 tonnes represents approximately 2.8% of graphite concentrates produced outside of China and less than 1% of total global supply. This modest scale relative to available supply reduces feedstock sourcing risk.
Standard grade and high specification graphite products are used in lubricants, polymers, plastics, engineered materials, energy storage, advanced manufacturing, and defence applications. These industries require consistent, high quality graphite products with controlled particle size distributions and purity levels.
Spot Sales Pricing
D90 – 95% C at 45µm: $1,920/t
D90 – 95% C at 5µm: $6,744/t
D90 – 99% C at 45µm: $2,715/t
D90 – 99% C at 5µm: $9,243/t
Sales pricing data reflects thousands of graphite sales tracked quarterly across thermal management, lubricants, engineered products, and plastics applications. Pricing varies significantly by particle size and purity specification, with ultra-fine 5µm high-purity products commanding premium prices.
Funding pathway focuses on minimising dilution
IG6 is responsible for meeting the A$12M Project capital cost estimate. Alkeemia will contribute access to land, arrange and manage permitting, provide warehousing, laboratories, control rooms, waste management systems, logistics, and supply the operational workforce.
The stated funding objective is to structure project-level financing that optimises return metrics for shareholders and minimises equity dilution. Project financing discussions are ongoing with the company’s corporate advisers. Discussions are also underway with cornerstone investors, and together with Alkeemia, opportunities within EU critical minerals funding programs are being investigated.
The JV structure transfers significant operational and infrastructure costs to Alkeemia through in-kind contributions, allowing IG6’s cash contribution to focus on direct production equipment. This capital allocation reduces total cash requirements relative to a standalone greenfield development.
The company stated it will update the market in accordance with continuous disclosure obligations as and when Project financing arrangements are finalised.
Testwork validates production capability
IG6 has conducted testwork at laboratory, pilot, and qualification scale using expert independent consultants, equipment suppliers, and the company’s own Collie R&D and Graphite Processing Facility. Over 1,200kg of graphite concentrate has been micronised at the Collie facility, described as well beyond pilot or demonstration scale.
The testwork scale achieved at IG6’s Collie Micronising Facility, which recently secured its building permit and is targeting mechanical completion in Q2 2027, provided the process confidence and qualification-scale output that underpinned equipment specifications for the Porto Marghera design.
Testwork achievements include:
- Over 1,200kg concentrate processed at qualification scale
- Products within target specifications for industrial applications
- Operating conditions confirmed
- ISO9001:2015 certification achieved
- Flowsheets, material balances and equipment specifications developed
The testwork successfully produced graphite products within target specifications suitable for industrial applications, which align with a commercial production market entry sales strategy. It confirmed operating conditions and was used to inform development of process flowsheets, material and energy balances, stage-by-stage process descriptions, and equipment lists with sizing and specifications.
The Collie facility has received independent quality assurance certification to ISO9001:2015. IG6 has also received intellectual property and advice from BatteryLimits Pty Ltd and Pro-Graphite GmbH, described as world leading experts in graphite processing.
Alkeemia has performed separate purification testwork on similar graphite concentrate feedstock, validating the business strategy for integrated processing and purification at the Porto Marghera site.
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Next steps and investment timeline
The Project timeline targets key milestones over the next 18 months:
- FID targeted: Q3 2026
- Permitting expected: H2 CY2026
- Construction period: 12 months
- First production: H2 2027
- Full production ramp-up: 18 months from first production
- Phase 2 expansion: 15,000t/y capacity (funded from Project cashflow)
The JV will be governed by a four-person Board of Directors with IG6 and Alkeemia both nominating two representatives. One of the four members will be appointed Chairman of the Board. Alkeemia will appoint the first Chairman who will hold the role for a period of 12 months. IG6 will appoint the Chairman for the following 12 months and the position will rotate thereafter.
All Board decisions will require at least majority approval with certain matters requiring unanimous agreement. The Chief Executive Officer of the JV will be appointed from one of the existing Alkeemia Directors who holds the requisite qualifications and approvals for an industrial chemical site Director and Officer.
The H2 2027 first production target positions IG6 for revenue generation within approximately 18 months of FID.
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