International Graphite Ltd (ASX:IG6) managing director Andrew Worland and chair Phil Hearse are in Washington DC this week, part of the official Australian delegation to the 10th annual SelectUSA Investment Summit hosted by the US Department of Commerce.
This summit is one of the biggest investment showcase events hosted by the US Government, attended by economic development leaders from 55 states.
The US has been investing heavily in critical mineral supply chains in recent months with a focus on diversified sources independent of China’s exports.
In May last year, Australia and the US signed the Climate, Critical Minerals and Clean Energy Transformation Compact, with the goal of enhancing bilateral cooperation and establishing climate and clean energy as a central pillar of the Australia-United States Alliance.
Keen focus on Australian minerals
Andrew Worland said the message from the summit was clear that the US is fully committed to diversifying its critical minerals supply away from China.
“For a development like ours it is incredibly heartening to hear so many US officials namecheck Australia as a supplier of choice for critical minerals,” Worland said.
“We’ve witnessed a seismic policy shift in the US where geopolitical considerations and the need to secure supply chains have markedly changed the investment landscape and customer demands in a way which will benefit Australian producers.
“The vertically integrated Springdale-Collie ‘mine to market’ graphite business we are building from Western Australia fits perfectly with the US desire to reduce its reliance on China and secure trusted, reliable sources of graphite.”
Read: International Graphite nears integrated graphite production as feasibility studies advance
Trusted ally, secure supply
IG6 and the Australian graphite industry are particularly well placed to meet the burgeoning demand for clean critical minerals in the US, with a secure, reliable and long-term source of natural graphite, companies operating at the highest environmental, social and governance (ESG) standards, and a secure geopolitical partnership with free trade agreements already in place.
Graphite is a major component of lithium batteries, which require about 1.2 kilograms of graphite per 1 kilowatt-hour (kWh) of energy produced – IG6’s Springdale Graphite Project has capacity to supply the mineral for as many as 400,000 lithium-ion batteries per year.
Read: International Graphite’s Springdale tests demonstrate ideal suitability for lithium-ion batteries
This year, both the US and the EU imposed tariffs on future imports of natural graphite from China, increasing prices between 25% and 38% – the US alone is predicted to require about 450,000 tonnes of graphite by 2030, with China currently supplying 100% of imports.
The Australian Government’s 2024 Budget also had a strong focus on local manufacturing, particularly in the critical mineral and battery processing and manufacturing sectors.
All in all, the Australian natural graphite industry is positioned to become a major player in the supply of natural graphite globally and particularly in the United States, with strong domestic support from both Federal and State governments.