ASX-listed graphite miner and supplier International Graphite (IG6) and European fluorine chemicals producer Alkeemia have signed a binding joint venture (JV) agreement to build a major EU graphite processing hub.

The agreement between the companies, which was signed at Alkeemia’s yearly Battery Forum in Venice on May 27, specifies the partners building a high-spec industrial graphite processing hub at Alkeemia’s global-scale hydrofluoric acid production facility in Porto Marghera, Italy.

The JV ownership will comprise Alkeemia with 51% and IG6 with 49%, with planned initial production capacity of 10 000 t/y before increasing to about 15 000 t/y within three years.

Alkeemia contributes to the partnership a Tier 1 industrial platform, including permitting, warehousing, graphite laboratories, control rooms, waste management systems, port and rail infrastructure, experienced operational workforce and graphite purification toll treating capacity.

Synergies from operating in an industrial chemical ecosystem are expected to position the JV as a highly capital-efficient graphite processing hub.

The companies expect to realise a rapid pathway to production and cashflow, with construction works planned to start in the third quarter.

First production from the JV is expected in the second half of 2027 – subject to a final investment decision (FID).

The immediate focus areas of the JV partners include finalising business plans, engineering and design cost estimates and advanced key construction and operational agreements to support FIDs.

To this end, IG6 is able to quickly localise its substantial technical database, processing flowsheets, process design criteria files and equipment suppliers and pricing to the Porto Marghera site to enable capital and operating cost estimates to be made.

IG6 will be responsible for providing the capital to meet the first 10 000 t/y production target, following which the JV will be responsible for the expansion to about 15 000 t/y. In turn, Alkeemia provides access to land, permit management, warehousing, laboratories, control rooms, waste management systems, logistics and an operational workforce.

Alkeemia says the company has developed advanced graphite purification technology, which, together with its position as a leading global hydrofluoric acid producer, creates a unique opportunity to establish an integrated mid-stream graphite processing platform at Porto Marghera, combining purification and downstream graphite processing within a single industrial ecosystem.

The JV will be governed by a four-person board, comprising two representatives nominated from each JV partner. The CEO of the JV will be appointed from one of the existing Alkeemia directors.

IG6 MD and CEO Andrew Worland says the agreement marks a defining moment for the company, especially since it was achieved in less than six months of discussions – a pace that reflects the genuine strength of alignment between the companies and the scale of the European critical minerals opportunity that is afoot.

“We look forward to executing this important development, together with Alkeemia, to secure Europe’s advanced materials supply chain through onshore production at one of Europe’s most important industrial chemical ports,” adds IG6 executive director Aidan Nania.

Alkeemia CEO Lorenzo Di Donato says the JV represents a fundamental milestone for Alkeemia and more broadly for the development of a true European supply chain for critical raw materials such as graphite.

“Europe must accelerate its industrial autonomy in critical raw materials by progressively reducing dependence on external supply chains and building more sustainable, efficient and resilient local production capabilities.

“The market is currently demanding a continental supply chain capable of ensuring security of supply, competitiveness and high environmental standards. Porto Marghera offers unique industrial, logistical and energy advantages to this end,” Di Donato concludes.