NextSource Secures $30 Million Investment for UAE Battery Anode Facility

NextSource Materials Inc. has secured a significant strategic investment from Japan's Hanwa Co. Ltd. and the Japan Organization for Metals and Energy Security (JOGMEC), an agency of the Japanese government. The investment, valued at US$30 million, will support the advancement of the company's battery anode facility in the United Arab Emirates (UAE).

Under the terms of the binding Share Subscription Agreement, Hanwa and JOGMEC will acquire a 15% equity interest in the UAE Battery Anode Facility (BAF) through a jointly owned investment vehicle. This investment will fund the first phase of the project, with NextSource retaining an 85% equity interest. The parties are expected to finalize a Shareholders' Agreement shortly, which will govern their respective rights and obligations as shareholders and establish the framework for the funding, development, construction, and operation of the BAF.

The strategic partnership is supported by a fully contracted route to market, ensuring that NextSource's BAF-produced natural graphite anode material will supply a major manufacturing company's electric vehicle (EV) production. The company is the sole supplier for a multi-year term, providing a critical component for the growing EV industry.

The UAE BAF is designed to produce approximately 14,000 tonnes per annum of anode material, with ramp-up expected to begin in the second half of 2027. The project is advancing through the pre-EPC (Engineering, Procurement, and Construction) mobilization phase, which includes finalizing property agreements, awarding early-works contracts, and initiating long-lead procurement for key equipment. The project has received a Final Investment Decision on May 12, 2026, marking a significant milestone in its development.

NextSource Materials Inc. aims to become a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals. The company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has already begun production through Phase 1 mine operations.

NextSource is developing a significant downstream graphite value-add business through the staged rollout of BAFs capable of large-scale production of coated, spheronized, and purified graphite for direct delivery to battery and automotive customers. The first BAF in the UAE is part of this strategic expansion, with plans for a planned expansion to approximately 30,000 tonnes per annum.

The company is also in advanced discussions with additional strategic investors regarding a further 35% interest in the UAE BAF project company. Following receipt of multiple expressions of interest to provide loan finance, NextSource is progressing discussions with potential debt providers. The company will provide an update on these workstreams and the closing of the Hanwa and JOGMEC subscription in due course.

Hanwa Co. Ltd., a major Japanese trading company listed on the Tokyo Stock Exchange, has a global presence and extensive experience in the trade of steel, non-ferrous metals, food, petroleum, and chemicals, with a specific and strategic focus on the battery material supply chain. JOGMEC, the Japan Organization for Metals and Energy Security, is a Japanese government agency under the Ministry of Economy, Trade and Industry, tasked with ensuring a stable supply of energy and mineral resources to Japan.

NextSource Materials Inc. is a battery materials company based in Toronto, Canada, with a mission to establish a vertically integrated, independent supply chain of battery anode materials. The company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun production through Phase 1 mine operations.