TSX-listed NextSource Materials has approved a final investment decision (FID) for Phase 1 of its proposed battery anode facility (BAF) in Abu Dhabi, in the United Arab Emirates, marking a major milestone in the company’s strategy to become a fully integrated, global producer of graphite anode materials.

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.

“Approval of the FID represents a significant step forward for NextSource and reflects the board’s confidence in the project’s fundamentals, the strength of our financing strategy and the growing global demand for high‑quality, vertically integrated anode materials. 

"The UAE continues to offer a stable, strategically located and highly supportive environment for advanced materials manufacturing, and today’s decision signals our confidence in moving ahead while maintaining disciplined risk management,” says NextSource president and CEO Hanré Rossouw.

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

NextSource is planning to eventually build a series of BAFs in key geographic locations. The BAFs will source flake graphite from NextSource's Molo graphite mine, in Madagascar, as well as from third-party flake graphite suppliers, if required and where appropriate.