- NextSource Materials (TSX:NEXT) signed a US$30 million share subscription agreement with Hanwa and the Japan Organization for Metals and Energy Security to expedite the company’s first battery anode facility in Abu Dhabi, UAE.
- The Canadian company is focused on becoming a vertically integrated supplier of graphite and other battery materials.
- NextSource Materials stock last traded at C$0.26, giving back 42.05% year-over-year and 91.30% since 2021.
NextSource Materials (TSX:NEXT), an emerging battery materials supplier, signed a US$30 million share subscription agreement with Hanwa, one of Japan’s top trading companies, and the Japan Organization for Metals and Energy Security (JOGMEC), to expedite the company’s first battery anode facility in Abu Dhabi, UAE.
Hanwa and JOGMEC will acquire a 15% stake in the planned facility as it undergoes phase-1 development, with Monday’s news release noting that a framework is in place for subsequent agreements to progress into construction and eventual operation.
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The facility, the first among many in the works, is advancing through pre-engineering-procurement-construction work, including property agreements, early-works contracts, long-lead equipment procurement, environmental and permitting activities, as well as the hiring of essential personnel, de-risked by a staged funding model the company is currently shopping out to additional investors.
Discussions with multiple parties are ongoing about debt financing and a 35% investment in the UAE facility’s operating company.
Leadership commentary
“The finalization of the Hanwa and JOGMEC investment in the UAE battery anode facility marks a significant milestone for NextSource. Our partnership with Hanwa and JOGMEC brings deep expertise in global battery materials, supply chains and critical mineral security, and their planned US$30 million investment provides strong validation of our strategy to establish a vertically integrated, independent supply chain of battery anode materials,” Hanré Rossouw, President and Chief Executive Officer of NextSource Materials, said in a statement.
About NextSource Materials
NextSource is a Canadian company focused on becoming a vertically integrated supplier of graphite and other battery materials. Its producing Molo graphite project in Madagascar houses one of the largest resources in the world. Concurrently, the company is planning to roll out attery anode facilities (BAF) to produce coated, spheronized and purified graphite for the battery and automotive industries.
NextSource Materials stock (TSX:NEXT) last traded at C$0.26, giving back 42.05% year-over-year and 91.30% since 2021.
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