Australia-Norway Joint Venture Bolsters European Graphite Supply Chain Security

Germany Paves Way for Global Graphite Expansion: International Graphite Taps European Demand for Advanced Materials

FRANKFURT, GERMANY – International Graphite is poised for significant European expansion, leveraging its new German facility to capitalize on the continent’s strong appetite for innovative industrial processing technologies and companies. This strategic move is expected to fuel the company’s growth in international graphite markets,building upon the capabilities of its existing micronization system in Collie.

The German operation is anticipated to be a game-changer, providing crucial cash flow and invaluable market knowledge that will directly support International Graphite’s global ambitions. The company sees europe as a key region where market participants are acutely aware of the benefits offered by advanced industrial processing technologies and companies within the graphite sector.

Evergreen Insight: The demand for specialized industrial materials like graphite is intrinsically linked to major global trends. As the world increasingly prioritizes energy efficiency,advanced electronics,and lasting infrastructure,companies that can reliably supply high-quality,processed graphite are well-positioned for long-term success. International Graphite’s strategic investment in Germany aligns perfectly with these overarching industrial shifts.

Bloating graphite, a specialized form of the mineral, plays a vital role across several critical industries. Its application as a flame retardant in building materials enhances safety standards, while its insulating properties are crucial for electronics and battery technology. Furthermore,its use in environmentally amiable steel electrodes underscores a commitment to cleaner industrial processes. The relentless drive for improved energy efficiency, the proliferation of high-performance computing, and the ongoing need for robust fire protection measures are collectively creating a sustained and growing demand for this versatile raw material.

Evergreen Insight: The versatility of natural resources like graphite, particularly when processed into specialized forms for advanced applications, is a consistent driver of market demand. As technological innovation continues to push the boundaries in sectors such as renewable energy,electric vehicles,and advanced manufacturing,the need for materials that enable these advancements will only intensify. Companies that can adapt their processing capabilities to meet these evolving needs will secure a lasting competitive advantage.

For further details and official announcements, please refer to the ASX dialog available at www.internationalgraphite.com.au/investors.

Media Contact:

Marie Howarth
[phone]
[email protected]
www.internationalgraphite.com.au

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The escalating demand for graphite, a critical mineral for electric vehicle (EV) batteries, energy storage systems, and numerous industrial applications, has spurred a important new partnership aimed at strengthening Europe’s access to this vital resource. A joint venture between Australian graphite developer, Black Rock Graphite (BRG), and Norwegian industrial group, NorSource AS, promises to deliver a more secure and sustainable graphite supply chain for the European market. This collaboration, finalized in late 2024, focuses on developing BRG’s Mahenge Graphite Project in Tanzania, with processing and advanced materials production slated for Norway.

Addressing Europe’s Graphite Dependence

Europe currently relies heavily on China for its natural graphite supply, a situation that presents significant geopolitical and logistical vulnerabilities. Concerns surrounding supply disruptions, price volatility, and ethical sourcing have driven the need for diversification.the BRG-NorSource partnership directly addresses this challenge by establishing a resilient,ethically-sourced,and geographically diverse graphite source. This initiative aligns with the European union’s Critical Raw Materials Act,aiming to reduce reliance on single suppliers and bolster domestic production capabilities. The focus on sustainable graphite is also key, responding to growing consumer and regulatory pressure for environmentally responsible materials.

The Mahenge Graphite Project: A High-quality Resource

The Mahenge Graphite Project in Tanzania is central to this venture. The deposit boasts:

high-grade Graphite: Mahenge is known for its exceptionally high-grade flake graphite, crucial for battery-grade applications. Initial testing indicates a Total Graphitic Carbon (TGC) content exceeding 96%.

Large Resource base: The project holds a substantial JORC-compliant Mineral Resource Estimate,ensuring long-term supply potential.

Strategic Location: Tanzania offers a stable mining habitat and access to established infrastructure, facilitating efficient extraction and transportation.

Eco-Amiable Mining Practices: BRG is committed to responsible mining, prioritizing environmental protection and community engagement. This includes water management strategies and rehabilitation programs.

This high-quality graphite ore will be initially processed into concentrated graphite products in Tanzania before being shipped to Norway for further refinement.

Norway’s Role: Advanced Graphite Processing & Value Addition

NorSource AS brings significant expertise in advanced materials processing and a strategic location within Norway.The plan involves establishing a state-of-the-art processing facility in Norway to:

1. Purification: Refining the graphite concentrate to meet the stringent purity requirements of the battery industry. This includes removing impurities like iron, aluminum, and silica.
2. Spheronization: Transforming graphite flakes into spherical particles, optimizing their performance in lithium-ion batteries.
3. Coating: Applying surface coatings to enhance graphite’s electrochemical properties and improve battery lifespan.
4. Production of Anode materials: Manufacturing high-performance anode materials ready for integration into EV batteries.

This value-added processing in Norway will create skilled jobs and establish a European hub for advanced graphite materials. The use of renewable energy sources in Norway’s processing facilities further enhances the sustainability profile of the supply chain. This focus on spherical graphite is especially significant, as it’s the preferred form for most EV battery manufacturers.

Supply Chain Security & Geopolitical Implications

The BRG-NorSource joint venture significantly reduces Europe’s dependence on a single source for graphite. By diversifying the supply base, the partnership mitigates risks associated with geopolitical instability, trade disputes, and logistical disruptions. This increased supply chain resilience is critical for the continued growth of the European EV market and the broader energy transition. The project also supports the advancement of a more localized and sustainable critical minerals supply chain.

Benefits for the European EV Industry

The availability of a secure and reliable supply of high-quality graphite anode material offers several benefits to the European EV industry:

Reduced Costs: Diversifying the supply chain can help stabilize graphite prices and reduce reliance on potentially inflated costs from a single supplier.

Improved Quality: Access to high-grade, purified graphite enhances battery performance, leading to longer driving ranges and faster charging times.

Enhanced Sustainability: Ethically sourced and sustainably processed graphite aligns with growing consumer demand for environmentally responsible products.

Increased Innovation: A localized supply chain fosters collaboration between graphite producers, battery manufacturers, and EV automakers, driving innovation in battery technology.

Compliance with Regulations: Supports adherence to the EU’s Critical Raw Materials Act and other sustainability regulations.

Case Study: The Importance of Diversification – Lessons from the Nickel market

The recent volatility in the nickel market serves as a stark reminder of the risks associated with concentrated supply chains. In early 2022, a short squeeze on the London Metal Exchange (LME) caused nickel prices to surge dramatically, disrupting battery production and highlighting the vulnerability of relying on a limited number of suppliers. This event underscored the urgent need for diversification in the supply of critical minerals, including graphite. The BRG-NorSource venture aims to prevent similar disruptions in the graphite market.

Practical tips for Businesses Navigating Graphite Supply Chains

for businesses involved in the EV battery supply chain, here are some practical steps to enhance supply chain security:

Supplier Diversification: Identify and qualify multiple graphite suppliers from different geographic regions.

Long-Term Contracts: Secure long-term supply agreements with reliable producers.

Traceability & Due Diligence: Implement robust traceability systems to ensure ethical sourcing and responsible mining practices.

Inventory Management: Maintain strategic graphite inventories to buffer against potential supply disruptions.

collaboration & Partnerships: Engage with industry stakeholders to promote supply chain resilience and innovation.

* Explore Option Graphite Sources: Investigate the potential of synthetic graphite as a supplementary source.

Future Outlook: Expanding Graphite Production & Innovation

The BRG-NorSource joint venture represents a significant step towards securing Europe’s graphite supply chain. However, continued investment in graphite exploration, processing, and recycling is essential to meet the growing demand from the EV industry. Further innovation in graphite materials, such as the development of silicon-graphite composites, will also play a crucial role in enhancing battery performance and reducing reliance on critical raw materials. The success of this venture could pave the way for similar partnerships and investments in other critical mineral supply chains, strengthening Europe’s position in the global energy transition.