Canada’s NextSource Sets Sights on $280 Million Graphite Plant in Saudi Arabia

Canada’s NextSource

NextSource Materials, a Canadian mining company, has unveiled ambitious plans to establish a state-of-the-art battery anode facility in Saudi Arabia, dedicated to producing graphite for electric vehicles (EVs). According to a technical study released on Thursday, the proposed plant is set to produce 20,000 tonnes per year of graphite anode active material within the first 16 months of operation. This initiative is part of NextSource's broader strategy to develop an anode processing hub over the next five years, aiming for a total production capacity of up to 100,000 tonnes per year of coated spheronised purified graphite.

Last June, NextSource commenced the production of graphite concentrate at its Molo mine in southern Madagascar. The output supplies leading EV manufacturers such as Tesla and Toyota. The company is targeting a phase 1 nameplate capacity of 17,000 tonnes per year of graphite concentrate by next month.

Looking ahead, the company has set a phase 2 production guidance to reach 150,000 tonnes per year of graphite within two years, a significant increase from the current 45,000 tonnes per year reported in September. Notably, NextSource's 4GWh solar and battery hybrid power plant at the Molo site achieved full operational status in October, capable of supplying one-third of the plant’s power needs.

In April, NextSource signed a long-term lease agreement to construct a second graphite plant in the Freeport Zone of Port-Louis, Mauritius. This facility will initially have a nameplate capacity of 3,600 tonnes per year of battery-grade graphite, with plans to scale up to 14,400 tonnes per year by next year, pending successful negotiations with the government.

The company is also exploring potential expansion into the UAE and North America, as part of its strategic effort to diversify global supply chains for battery-grade graphite anodes. According to trade data, China accounted for over 80 million kilograms of flake graphite imports last year, representing 83% of global imports and underscoring the critical need for diversified sources of this essential raw material for natural graphite anodes.