Name of the Project
Battery anode facility.

Location
Abu Dhabi, United Arab Emirates.

Project Owner/s
Battery metals developer NextSource Materials.

Project Description
NextSource announced positive results of a technical and economic study on the construction of a proposed 30 000 t/y battery anode facility (BAF) in September 2025.

The proposed operation will have a production capacity, comprising 10 000 t/y of purified flake graphite (PFG), 16 000 t/y of spherical purified graphite (SPG) and 4 000 t/y of coated SPG.

This accommodates the expected growth of Mitsubishi Chemical’s existing offtake agreement volume requirements beyond the initial 9 000 t/y and the expectation that the company will secure additional volume capacities with other original-equipment manufacturers’ offtakes.

The facility will be developed in two phases, with the initial phase targeting production capacity of 14 000 t/y of active anode material comprising 10 000 t/y of PFG and 4 000 t/y of SPG.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The proposed project has an after-tax net present value, at an 8% discount rate, of $441.8-million and an internal rate of return of 24.2%.

Capital Expenditure
$290.9-million.

Planned Start/End Date
The first phase delivering 14 000 t/y is expected in 2026 before full capacity is targeted for early 2028.

Latest Developments
NextSource Materials has approved a final investment decision (FID) for Phase 1 of the proposed BAF.

The approval follows the successful completion of front-end engineering design (FEED), which confirmed the robust economics and project configuration outlined in the October 2025 BAF study. The FEED results provide strong technical validation of the project’s design, capital profile and operating parameters, reinforcing the company’s confidence in advancing the UAE BAF as its next phase of growth.

The FID authorises NextSource to proceed into the pre-engineering, procurement and construction mobilisation phase, including finalisation of the property agreements and approvals, awarding certain early works contracts, progressing environmental and permitting activities and initiating long-lead procurement for key equipment.

This phase will also enable the start of equipment shipments from China and Mauritius and the hiring of essential project personnel.

NextSource has said that the FID decision is underpinned by the ongoing momentum in the company’s financing process, including the proposed strategic investment from the Japanese consortium comprising Hanwa Co and the Japan Organization for Metals and Energy Security.

The company is also continuing with constructive engagement with other equity investors, lenders and development finance institutions.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
NextSource Materials, tel +1 416 364 4911 or email investors@nextsourcematerials.com.