NextSource Materials Announces Positive Results of Technical & Economic Study for Proposed Battery Anode Facility in the UAE and Secures Industrial Site with Building in Abu Dhabi

Executive Summary

• NextSource announced a technical and economic feasibility study for a 30,000 tpa battery anode facility (BAF) in Abu Dhabi, UAE, showing strong economics (post‑tax NPV ≈ US$442 M, IRR ≈ 24%).
• Total capital cost is estimated at US$291 M (Phase 1 ≈ US$150 M) with projected annual revenue of US$195 M and EBITDA of US$76 M at full production.
• The company has secured a site agreement for an existing industrial building, launched a strategic partner process to attract debt/equity investors, and plans initial production in Q4 2026 with full capacity by early 2028.

Key Details

• Production Capacity: 30,000 tpa total (10,000 tpa PFG, 16,000 tpa SPG, 4,000 tpa CSPG).
• Phase 1 Scope: 14,000 tpa (10,000 tpa purified flake graphite + 4,000 tpa spherical purified graphite) at US$150.2 M capex.
• Capital Costs: US$291 M total (incl. US$13 M sunk costs and US$7 M working capital).
• Economic Highlights (post‑tax):
• NPV (8% discount) – US$441.8 M
• IRR – 24.2%
• Payback period – 4.6 years
• Annual revenue – US$195.5 M (average sales price US$6,417/t)
• EBITDA – US$75.6 M
• Financing Assumption: Project modeled on 100% equity financing; debt/equity partner process underway.
• Offtake Agreement: Existing binding multi‑year offtake with Mitsubishi Chemical for ~9,000 tpa AAM to the North American EV market; Phase 1 exceeds this volume.
• Site & Property: Agreement signed for an industrial building in Industrial City of Abu Dhabi (ICAD), a permit‑expedited zone requiring no prior Environmental Impact Study.
• Timeline:
• Site acquisition and equipment transport – pending legal approvals.
• Front‑end engineering & design – ongoing.
• Construction start – anticipated Q4 2026.
• Commissioning – targeted end of 2026; full production early 2028.
• Strategic Partner Process: Active discussions with global debt and equity investors; opportunities identified for joint‑venture or additional funding to enhance economics.
• Conference Call: Management (CEO Hanré Rossouw, CFO Jaco Crouse, CCO Craig Scherba) will discuss the update on Oct 6 2025 at 9:00 am EST (webcast link provided).

Notable Quotes

“Securing our facility in the UAE is a pivotal step in expediting NextSource's downstream strategy under our offtake agreement with Mitsubishi Chemical Group… 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.” – Hanré Rossouw, President & CEO

All monetary figures are in U.S. dollars unless otherwise noted.