Name of the Project
Battery anode facility (BAF).

Location
Several sites are under consideration in Saudi Arabia and the United Arab Emirates (UAE). Sites under consideration are already home to a wide range of industries, including petrochemicals, refining, manufacturing and logistics. The sites offer easy access to raw materials, markets, and transportation networks, making them attractive locations for the company to service domestic and international customers.

Project Owner/s
Battery metals developer NextSource Materials.
 
Project Description
NextSource plans to build multiple BAFs worldwide in key jurisdictions – Madagascar, Saudi Arabia, the UAE and North America – in stages. The BAFs will be capable of producing commercial-scale graphite anode active material for lithium-ion batteries used in electric vehicle (EV) applications.  

The proposed BAF will have a production capacity of 20 000 t/y of coated spheronised purified graphite (CSPG). The company is designing the plant with the expectation that it will be expanded in two phases, resulting in a total production capacity of 100 000 t/y of CSPG material.

The BAF design will be based on NextSource’s technology partner’s proprietary anode processing technology that is supplying spheronised purified graphite and CSPG material to major EV automotive companies, including Toyota and Tesla.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The proposed project will have an after-tax net present value, at an 8% discount rate, of $677-million and an internal rate of return of 20.3%, with a payback of 6.4 years.

Capital Expenditure
$280-million.

Planned Start/End Date
Full production is achievable in 16 months from the start of construction.

Latest Developments
NextSource Materials is pivoting its BAF strategy from Mauritius to the Middle East, seeking to capitalise on faster permitting, better infrastructure, and closer proximity to EV manufacturers.

The battery materials developer has terminated its lease agreement and withdrawn an environmental-impact application for a proposed BAF in Mauritius, ending a multiyear effort to establish a facility there. NextSource has cited delays and regulatory uncertainty for the decision, which it has said will reduce financial exposure and allow for quicker deployment of its processing equipment elsewhere.

The company is now prioritising potential BAF sites in Saudi Arabia and UAE - regions that offer “streamlined permitting processes, robust infrastructure, and strategic proximity to global EV manufacturers”, NextSource has said.

The decision comes amid ongoing negotiations with potential original-equipment manufacturers to secure offtake agreements. The company has noted that feedback from product qualification trials has been positive, and progress to larger-scale BAFs supports its aim of establishing a secure and traceable supply chain for graphite anode material.

A presence in the Middle East also positions the company to benefit from favourable trade terms. The UAE currently faces a 10% reciprocal tariff when exporting to the US, in contrast to significantly higher tariffs on graphite anode materials from China.

Key Contracts, Suppliers and Consultants
Stantec (conceptual design).
 
Contact Details for Project Information
NextSource Materials, tel +1 416 364 4911 or email investors@nextsourcematerials.com.