Australia-based International Graphite (ASX: IG6) is advancing plans for a European graphite processing facility through a partnership with Italian chemical producer Alkeemia S.p.A., targeting the development of domestic downstream capacity for battery materials and industrial graphite products.
The companies plan to establish an advanced graphite processing hub at Porto Marghera near Venice, Italy, using Alkeemia’s existing industrial infrastructure to reduce development costs and accelerate construction timelines. The facility is expected to begin production in late 2027, with initial output targeted at approximately 10,000 tonnes per year of high-value graphite products. Further expansion phases are planned after the initial production stage.
Italian Industrial Site Supports Graphite Processing Development
The Porto Marghera project is structured as a joint venture between International Graphite and Alkeemia. Under the agreement, Alkeemia will hold 51% ownership, while International Graphite will hold 49%. Despite the ownership split, the companies will share profits equally.
Alkeemia will contribute its existing industrial site, chemical processing infrastructure, logistics systems, utilities and workforce. International Graphite will provide its proprietary processing technology, downstream graphite expertise and investment in processing equipment. The project is designed around the use of established industrial assets rather than the construction of an entirely new processing complex.
Porto Marghera provides access to existing chemical facilities, specialist reagents including hydrofluoric acid, integrated waste treatment infrastructure, rail connections and port logistics. These existing capabilities are expected to reduce capital requirements compared with developing a greenfield graphite processing facility and support shorter permitting and construction schedules.
European Graphite Processing Capacity Remains Limited
The development addresses a major gap in Europe’s graphite supply chain. Although natural graphite resources exist globally, China remains the dominant player in downstream graphite processing, supplying most graphite used in lithium-ion battery anodes, industrial applications and advanced manufacturing.
Europe currently imports more than 100,000 tonnes of natural graphite annually, with a significant portion of processing capacity located outside the continent. The Porto Marghera facility is intended to strengthen European processing capability by creating local production capacity for high-value graphite products.
Project Aligns With EU Raw Materials Processing Objectives
The International Graphite-Alkeemia development supports objectives under the EU Critical Raw Materials Act, which targets 40% of Europe’s annual strategic raw material processing capacity to be located within the European Union by 2030. The project reflects increasing attention on processing infrastructure as a critical part of mineral supply security.
European policymakers have identified downstream refining and processing capacity as a major constraint in supply chains supporting batteries, electric vehicles, renewable energy technologies and defence manufacturing. Rather than focusing only on mineral extraction, the strategy increasingly includes the development of processing facilities capable of converting raw materials into industrial products.
Existing Infrastructure Reduces Development Requirements
The Porto Marghera location provides advantages through its established industrial base. The availability of chemical infrastructure, specialist inputs, logistics networks and waste-management systems reduces the need for new supporting facilities.
The use of existing assets also supports a development model based on faster commercialisation and lower execution risk compared with building a completely new industrial site. The partnership combines International Graphite’s graphite processing capabilities with Alkeemia’s chemical manufacturing infrastructure to create a European-focused downstream graphite operation.
Regional Supply Opportunities Extend to Southeast Europe
The project also highlights potential opportunities for countries with graphite resources seeking access to European processing networks. Countries including Serbia, which has graphite exploration potential and expanding renewable energy capacity, could potentially participate in future regional supply chains by providing raw materials or intermediate products to European processing facilities.
As battery manufacturing and advanced industrial production expand across Europe, access to processing infrastructure is becoming increasingly important alongside mineral resource availability. High-purity graphite is used in lithium-ion battery systems, energy storage technologies, industrial refractories, advanced manufacturing, defence applications and other clean technology sectors. The Porto Marghera development represents an effort to establish additional European processing capacity for graphite products as the region seeks to reduce reliance on imported processed materials.
