International Graphite Ltd: $4M Grant Fuels Battery Graphite Vision

Key Highlights

• Secures a $4 million grant from Western Australia's Investment Attraction Fund.
• Funds will support the Springdale-Collie mine-to-market battery graphite strategy.
• Installation of Australia’s first graphite spheroidiser planned at Collie R&D Facility.
• Total government support reaches $17.2 million, with $12.2 million yet to be drawn.

International Graphite Ltd (ASX: IG6), an emerging player in the battery materials industry, is making significant strides with its vertically integrated graphite supply chain in Western Australia. The company’s recent $4 million grant from the Western Australian Government’s Investment Attraction Fund is set to accelerate its commercialisation activities and expand its graphite processing capabilities.

Strategic Significance of the Grant

The $4 million funding, announced by WA Premier Roger Cook, will be allocated to:

• Bulk Extraction at Springdale: This activity will support the design of downstream processing systems and evaluate customer offtake potential.
• Graphite Spheroidiser Installation: A demonstration-scale spheroidising unit will be established at the Collie Graphite Processing and R&D Facility, enabling advanced product qualification capabilities.

This grant underscores the WA Government’s commitment to fostering a sovereign supply of battery-grade graphite, pivotal for energy transition technologies and job creation in the region.

Performance and Market Insights

International Graphite’s (ASX: IG6) stock closed at $0.061 on January 15, 2025, reflecting a 27.08% increase from the previous session. Despite a year-over-year decline of 57.93%, the company has shown signs of recovery with a one-month performance of +24.49% and a year-to-date growth of +22%. These metrics highlight a cautious yet optimistic outlook for the company’s long-term potential.

Key Market Metrics

• Market Cap: $11.81 million.
• Volume: 507,378 shares traded (4-week average: 142,709).
• 52-Week Range: $0.040 - $0.190.

Building a Sustainable Battery Graphite Supply Chain

International Graphite (ASX: IG6) is at the forefront of building a mine-to-market graphite business, leveraging Western Australia’s resources and expertise. Its vertically integrated strategy spans:

• Springdale Graphite Project: A 100%-owned mining operation focused on graphite concentrate production.
• Collie Processing Facility: Advanced downstream processing capabilities, including micronising, spheroidising, and R&D activities.

Government Support Overview

The $4 million grant adds to the $17.2 million in combined state and federal funding received by the company, of which $12.2 million remains available for drawdown. Previous allocations include:

• Collie Futures Industry Development Fund: $2 million for establishing the Collie R&D Facility.
• Critical Minerals Development Program: $4.7 million for feasibility and construction of advanced graphite facilities.
• Collie Industrial Transition Fund: $6.5 million for progressing battery anode materials.

Why This Matters

The global shift toward electrification has heightened the demand for critical minerals like graphite. International Graphite’s (ASX: IG6) strategy aligns with market trends, offering several benefits:

• Energy Security: Establishing a reliable domestic supply chain minimizes dependence on imports.
• Economic Impact: Local processing creates jobs and supports regional development.
• Sustainability: The company’s adherence to ISO9001:2015 standards ensures environmentally responsible practices.

Outlook and Future Plans

Managing Director and CEO Andrew Worland emphasized the transformative potential of the grant: “This funding not only accelerates our commercialisation efforts but also positions WA as a hub for battery materials, attracting global trade and investment.”

Looking ahead, the company aims to:

• Finalize feasibility studies for the Springdale Graphite Project.
• Advance downstream processing technologies.
• Build partnerships with battery manufacturers and other stakeholders to strengthen its market presence.

Investment Considerations

While International Graphite’s (ASX: IG6) one-year return remains negative, its recent grant and strong government backing provide a solid foundation for future growth. Investors should consider the company’s commitment to innovation and sustainability in the high-demand battery materials sector. However, potential risks include market volatility and the challenges of scaling operations in a competitive landscape.

International Graphite Ltd’s (ASX: IG6) $4 million grant marks a pivotal moment in its journey toward becoming a leading supplier of battery-grade graphite. By leveraging state-of-the-art technology and robust government support, the company is well-positioned to contribute to the global energy transition while bolstering Western Australia’s standing in the critical minerals sector.