NextSource Materials Unveils Global Anode Expansion and Saudi Arabia Facility Plans

NextSource Materials Inc. has provided an update on its global anode expansion strategy, including positive results from a study for a proposed battery anode facility in Saudi Arabia. The technical and economic study, conducted with Stantec, outlines a 20,000 tonnes per annum (tpa) capacity for producing natural graphite anode material. Key results include a post-tax NPV of $677 million and an IRR of 20.3%, with expected annual revenues at $230.1 million and EBITDA of $128.5 million.

This initiative is part of NextSource's broader plan to construct multiple anode facilities globally, including regions like Madagascar, the UAE, and North America. The Saudi facility aims to align with Vision 2030, promising economic incentives and accelerated permitting processes. The company plans to increase the total production capacity to 100,000 tpa over five years, leveraging proprietary technology to meet the growing demand for EV batteries.

Strategic site selection for the facility is underway, with a focus on the Industrial City of Yanbu, which offers strategic advantages like low-cost utilities and robust infrastructure. NextSource is also in discussions with potential debt and equity financiers for funding, aiming to initiate construction soon.