International Graphite Ltd (ASX:IG6) has received the second tranche of an A$4.7 million grant from the Australian Government, specifically aimed at developing critical minerals.
The $1.25 million instalment will be used to continue the company’s “aggressive push” into the graphite market.
Funding will primarily facilitate ongoing feasibility studies at the Springdale Graphite Project in Western Australia and support operations at the Collie downstream graphite processing facilities.
Unique advantage
This strategic advancement comes at a critical time, as the vulnerability of the global battery supply chain has been highlighted by China's recent decision to restrict graphite product exports.
China, supplying more than 80% of the world market, has left major battery gigafactory developers in Europe, North America, Korea and Japan seeking consistent and reliable sources for essential raw materials, including graphite.
International Graphite's strategic positioning in Western Australia, with its planned Springdale graphite mine and Collie downstream facilities, presents a unique advantage in this rapidly evolving global market scenario.
What’s next
The scoping study for Springdale is nearing completion with the full report to be completed over the Christmas and New Year break and results planned for release to the ASX in January 2024.
At Collie, the installation of the graphite micronising qualification plant and dry commissioning will be completed within the week.
Processing of imported graphite concentrates will kick off in the new year to produce micronised graphite products of various sizes for customer validation and qualification.
The company anticipates a final investment decision for its proposed A$12.5 million commercial micronising operation, capable of producing 4,000 tonnes per year, in the first half of 2024.