TSX-listed NextSource Materials has announced positive results from a technical and economic study on the construction of a proposed 30 000 tpa capacity battery anode facility (BAF) located in the United Arab Emirates (UAE). The company further announces it has signed an agreement to secure an industrial building in the Industrial City of Abu Dhabi (ICAD) and has launched a strategic partner process to consider expressions of interest it has received for funding the UAE BAF.
This announcement is a key milestone in the company’s strategy to achieve full vertical integration by 2027.
The construction of a proposed BAF in the UAE would position NextSource to become the largest anode producer outside of Asia and is part of its global expansion strategy to construct BAFs in key geographic locations, each with modular production capacities, that can be expanded in lockstep with automotive manufacturer (OEM) demand.
Stantec, a global engineering service provider and partner firm with NextSource, has completed a preliminary design and produced both a capital and operating cost estimate in line with AACEi guidelines as part of the Study to develop a UAE BAF.
The Study is based on a specific site and existing building that the Company has signed an agreement to secure in the ICAD, a major industrial free zone consisting of an existing, high-quality heavy industrial building requiring minimal modification with a significant land parcel that provides sufficient space to accommodate a 30,000 tpa capacity BAF.
The site and existing building are in an expedited permit zone, where an Environmental Impact Study and Assessment is not required to begin construction, and strategically situated along major international shipping routes and supported by extensive and world-class infrastructure, including local deep-water ports, industrial parks, and commercial free zones. It is immediately adjacent to a wide range of industries, including petrochemicals, refining, manufacturing, and logistics, offering easy access to raw materials, markets, and transportation networks, making the facility an attractive location for the Company to service domestic and international customers.
Hanré Rossouw, CEO commented, “Securing our facility in the UAE is a pivotal step in expediting NextSource’s downstream strategy under our offtake agreement with Mitsubishi Chemical Group, and the site’s readiness allows for rapid project execution. The results of our BAF Study confirms our unique position to deliver high-performance graphite anode material at scale, with compelling economics and a clear path to scalable commercial production. This milestone validates our global expansion strategy and reinforces our commitment to supporting the electric vehicle supply chain with vertically integrated, ESG-compliant solutions. We are excited to move forward with our strategic partners and have launched a process with debt and equity investors to unlock the full value of our proprietary technology and feedstock advantage.”
