Mitsubishi Chemical Corporation secures a binding contract with NextSource Materials to procure SuperFlake Graphite Anode Material for the EV market in North America.
NextSource Materials and Mitsubishi Chemical Corporation Announce Major Graphite Supply Agreement
NextSource Materials Inc., a Canadian battery materials development company, has entered into a significant partnership with Mitsubishi Chemical Corporation (MCC). This partnership will see NextSource supply MCC with approximately 9,000 metric tons of intermediate anode active material (AAM) annually, marking a significant step towards vertical integration outside China.
The agreement, spanning a multi-year term, makes NextSource the sole supplier of this intermediate AAM to MCC. The material will be produced at NextSource's planned Battery Anode Facility (BAF) in the United Arab Emirates (UAE), using SuperFlake® graphite sourced from its Molo mine in Madagascar. MCC will then refine the intermediate material at its plant in Japan into finished AAM, which will be supplied to a major original equipment manufacturer (OEM) for electric vehicle (EV) battery production in North America.
The deal positions NextSource as one of the few vertically integrated graphite suppliers globally, aiming to provide a secure and transparent supply chain decoupled from Asian sources. The UAE-based BAF is being fast-tracked to meet the volume requirements stipulated by MCC, with several potential sites identified for favourable permitting, infrastructure, and proximity to other OEMs.
The partnership is critical in response to new US tariffs on Chinese anode-grade graphite imports and growing demand from the North American EV market for sustainable and diversified material sources. This supply chain partnership will support NextSource’s goal of becoming a leading supplier of graphite anode material for electric vehicles while enabling MCC to produce final, coated, spheronized, and purified graphite suitable for battery cell manufacturing in North America.
The Molo mine in Madagascar, owned by NextSource, is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The completion of the Molo Phase 2 expansion and the large-scale BAF in the Middle East offer a strong foundation for growth for both Mitsubishi Chemical Corporation and NextSource Materials Inc.
The technical and economic studies for the Molo mine and a UAE-based BAF will inform the final investment decisions for Molo Phase 2 expansion, including capital requirements and detailed financing plans. MCC aims to secure further offtake agreements for SuperFlake® AAM through an industry-scale Molo Phase 2 expansion and a large-scale BAF in the Middle East.
NextSource Materials Inc. is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF". Mitsubishi Chemical Group Corporation, the parent company of Mitsubishi Chemical Corporation, is listed on the Tokyo Stock Exchange Prime Market (Code: 4188). Both companies are committed to driving sustainable growth and innovation in the battery materials sector.
[1] NextSource Materials Inc. Press Release, [date], [URL] [2] Mitsubishi Chemical Corporation Press Release, [date], [URL] [3] Molo Graphite Project, NextSource Materials Inc., [URL] [4] Mitsubishi Chemical Group Corporation, [URL] [5] Toronto Stock Exchange, NextSource Materials Inc., [URL] [6] OTC Markets Group Inc., NextSource Materials Inc., [URL]
- This partnership between NextSource Materials Inc. and Mitsubishi Chemical Corporation is significant, as it involves investments in the technology sector, with NextSource supplying MCC with battery metals for the production of intermediate anode active material.
- The finance industry plays a crucial role in the business partnership between NextSource and MCC, as the agreement spans a multi-year term and involves securing capital for the expansion of the Molo mine and the construction of the Battery Anode Facility.
- The battery materials industry stands to benefit from the strategic alliance between NextSource and MCC, as the partnership aims to ensure a secure and transparent supply chain for graphite anode material, downstream from the Asian sources, in response to increasing demand from the electric vehicle industry.
