- NextSource (TSX:NEXT) signed a multi-year offtake agreement with Mitsubishi Chemical, Japan’s largest chemical company, to supply graphite anode material to a major manufacturer in the North American electric vehicle market
- NextSource Materials is a battery materials development company based in Toronto, Canada
- NextSource stock has given back 33.77 per cent year-over-year but remains up by 45.71 per cent since 2020
NextSource (TSX:NEXT) signed a multi-year offtake agreement with Mitsubishi Chemical, Japan’s largest chemical company, to supply graphite anode material to a major manufacturer in the North American electric vehicle (EV) market.
This content has been prepared as part of a partnership with NextSource Materials Inc., and is intended for informational purposes only.
NextSource will produce 9,000 tons per year of intermediate anode active material and ship it to Mitsubishi Chemical’s plant in Japan, where it will be finished and made fit for EV battery cells. The companies’ ongoing qualification process, to be finalized in 2026, has confirmed that NextSource’s anode material complies with the manufacturer’s specifications.
The deal is a step forward in NextSource’s plan to become one among only a handful of integrated graphite producers outside of China. According to Tuesday’s news release, this would allow the company to capitalize on how “more than 95 per cent of the anode (negative) side of EV batteries is made from graphite, making it the most critical raw material of all battery metals,” with the United States currently imposing a 160 per cent tariff on anode-grade graphite imports from China.
To make sure its operations can comply with feedstock requirements under the offtake agreement, NextSource is preparing to expand its producing Molo mine in Madagascar and develop a battery anode facility in the Middle East, with several strategic sites identified in the United Arab Emirates. Investors can expect technical and economic studies on both projects in the near future on the road to vertical integration, which the company envisions by 2027.
Leadership insights
“We are excited to have entered into a partnership with Mitsubishi Chemical Corporation through a binding offtake agreement for the production of active anode material in the Middle East, leveraging high-quality graphite feedstock from our Molo mine in Madagascar,” Hanré Rossouw, president and chief executive officer of NextSource Materials, said in a statement. “This partnership underscores our commitment to delivering sustainable, high-performance anode materials to meet the growing demand from OEM and battery manufacturers. By integrating world-class resource supply with advanced processing capabilities, we are building a resilient and scalable solution that supports global electrification efforts.”
About NextSource Materials
NextSource is a battery materials development company based in Toronto, Canada, progressing towards vertical integration. The company’s Molo project in Madagascar houses one of the largest and highest-quality graphite resources in the world.
NextSource Materials stock (TSX:NEXT) is up by 22.89 per cent on the news trading at C$0.51. The stock has given back 33.77 per cent year-over-year but remains up by 45.71 per cent since 2020.
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