Highlights

  • International Graphite shares climbed 40.48% on 27 May 2026 following a major European JV announcement.
  • IG6 signed a binding joint venture agreement with Italy-based Alkeemia.
  • The project targets development of a graphite processing hub in Porto Marghera, Italy.
  • Initial production capacity is planned at 10,000 tonnes per year.
  • Capacity could increase to around 15,000 tonnes annually within three years.
  • Construction is targeted to begin in Q3 2026 with first production planned for H2 2027.

International Graphite Ltd (ASX:IG6) shares surged during the morning session on 27 May 2026, climbing 40.48% to AUD 0.059 after the company announced a binding joint venture agreement with Italian chemicals group Alkeemia to establish a large-scale graphite processing hub in Europe.

The market reaction followed investor optimism around the proposed development at Porto Marghera, Italy, which is expected to position International Graphite within the growing European battery materials and critical minerals Supply chain.

The agreement represents a notable milestone for the Western Australian graphite developer, which has been pursuing a processing-first strategy focused on Downstream graphite products and battery material markets rather than traditional Mining-only exposure.

International Graphite stated that the proposed project is intended to support Europe’s push to strengthen domestic critical minerals supply chains while reducing reliance on overseas processing infrastructure.

Joint Venture to Target European Graphite Processing Market

The newly signed joint venture and shareholders’ agreement was announced during Alkeemia’s annual Battery Forum in Venice.

Under the structure of the Partnership, Alkeemia will hold a 51% interest in the joint venture while International Graphite will own the remaining 49%. Despite the ownership split, profits generated by the operation are planned to be shared equally between both companies.

The proposed Facility will be located at Alkeemia’s industrial chemical production site in Porto Marghera, near Venice, which already contains extensive industrial infrastructure and operational capabilities.

According to the companies, the site provides access to Warehousing facilities, graphite laboratories, waste management systems, control rooms, port logistics and rail infrastructure.

The project is also expected to benefit from Alkeemia’s existing hydrofluoric acid production platform and graphite purification technology, which management believes could improve operating efficiencies and reduce development costs.

International Graphite indicated that co-locating graphite operations within an established industrial chemical ecosystem may allow the facility to operate with comparatively lower Capital intensity and reduced operating costs.

Production Plans and Timeline Take Shape

The joint venture development strategy initially targets graphite processing capacity of 10,000 tonnes per year.

Management also outlined expansion plans that could increase production to around 15,000 tonnes annually within three years of commencement.

Construction activities are currently targeted to begin in the third quarter of 2026, subject to final Investment decisions and financing outcomes.

First production is planned for the second half of 2027.

The relatively short timeline toward potential production and Cash Flow generation appeared to contribute to investor interest following the announcement.

Technical studies supporting the project are currently being finalised and are expected to provide financial guidance around Capital Expenditure and operating cost estimates.

These studies are intended to support financing discussions and eventual final investment decisions for the project.

Existing Infrastructure Seen as Key Advantage

A major aspect of the proposed development is the ability to Leverage infrastructure already operating at Porto Marghera.

Alkeemia will contribute land access, permitting management, operational facilities, laboratories, logistics support and workforce capabilities as part of the agreement.

The site already includes industrial chemical processing infrastructure, including facilities connected to hydrofluoric acid production, which is considered important in graphite purification processes.

International Graphite stated that this integrated industrial platform could significantly reduce project complexity and improve development efficiency compared with building standalone infrastructure.

The partnership will also utilise Alkeemia’s operational workforce and site services through a dedicated operations management agreement covering safety systems, logistics, laboratory services, equipment management and insurance support.

The companies believe the industrial ecosystem surrounding the site may provide long-term advantages as Europe continues investing in local battery material supply chains.

Funding Discussions Continue Ahead of Final Investment Decision

International Graphite noted that several funding pathways are currently being explored to support construction of the initial 10,000-tonne-per-year facility.

These initiatives include project financing discussions, European Union critical minerals funding programs and engagement with potential cornerstone Equity investors.

The company added that several tier-one trading groups and prospective customers are continuing to evaluate the graphite products planned to be produced at the facility.

Under the agreement, International Graphite will provide capital funding for the first stage of production capacity, while future expansion toward 15,000 tonnes per year is expected to be supported through operational cash flows generated by the joint venture.

Management indicated that technical databases, process design criteria, flowsheets and equipment supplier information developed by International Graphite can be adapted relatively quickly to the Porto Marghera site.

This may assist with accelerating engineering studies and cost estimation work ahead of final approvals.

Europe’s Critical Minerals Push Supports Project Momentum

The proposed development comes as Europe continues efforts to strengthen regional supply chains for battery materials and critical raw materials.

Graphite remains a key component in Lithium-Ion Battery production, particularly for electric vehicle anodes and energy storage technologies.

The companies involved in the project described the joint venture as part of broader efforts to support European industrial autonomy in critical minerals processing.

Alkeemia Chief Executive Officer Lorenzo Di Donato stated that Europe is increasingly seeking local supply chains capable of improving security of supply while maintaining environmental and operational standards.

Porto Marghera was highlighted as a strategically important industrial location due to its logistics infrastructure, energy access and established chemical processing ecosystem.

The partnership is expected to focus on industrial graphite products and anode materials used in battery Manufacturing applications.

Management Highlights Strategic Importance of Agreement

International Graphite management described the agreement as an important development achieved within a relatively short timeframe.

Managing Director and Chief Executive Officer Andrew Worland said the deal represented a defining moment for the company and reflected alignment between both organisations around the European critical minerals opportunity.

Executive Director Aidan Nania added that the project supports efforts to establish advanced materials production capabilities within Europe using onshore processing infrastructure.

Alkeemia executives also highlighted the importance of combining the company’s hydrofluoric acid production platform and graphite purification technology with International Graphite’s downstream graphite processing expertise.

The companies believe the collaboration could support development of an integrated mid-stream graphite processing platform within Europe.

Governance Structure and Operational Oversight

The joint venture will be governed by a four-member board consisting of two representatives appointed by each company.

Board Leadership will rotate annually between the parties, beginning with an Alkeemia-appointed chairman during the first 12 months.

The companies stated that major board decisions will require majority approval, while certain matters will require unanimous consent.

The joint venture’s chief executive officer is expected to be selected from one of Alkeemia’s existing directors, although no formal appointment has yet been announced.

Standard provisions relating to termination, Withdrawal rights and protection of Shareholder interests have also been included within the agreement.

International Graphite’s Broader Strategy

International Graphite has been pursuing development of graphite processing capacity across both Western Australia and Europe.

The company’s broader strategy focuses on downstream graphite products and value-added processing opportunities rather than relying solely on raw material extraction.

According to the company, its combined facilities are targeting total production capacity of approximately 20,000 tonnes annually over time.

International Graphite also owns the Springdale graphite deposit in Western Australia, which management describes as providing long-term feedstock optionality for future processing operations.

The company has repeatedly highlighted its strategy of targeting lower-capital-intensity processing opportunities supported by established infrastructure and industry partnerships.

Today’s market reaction suggests investors viewed the Alkeemia agreement as a potentially important step in advancing that strategy within Europe’s expanding battery materials sector.