NextSource Initiates Strategic Partner Process for UAE Battery Anode Facility
NextSource Materials Inc. has initiated a strategic partner process for funding the UAE Battery Anode Facility (UAE BAF). The company has secured an industrial building in the Industrial City of Abu Dhabi (ICAD) and completed a preliminary design with Stantec. The study confirms the facility's capacity to meet existing and future demand.
The UAE BAF is planned to commence production in Q4 2026, with full capacity reached by early 2028. The facility will produce 1 million tonnes per annum (tpa) of anode active material (AAM), satisfying Mitsubishi Chemical's offtake agreement and accommodating future growth. At full production, it is expected to generate average annual revenues of US$195 million and EBITDA of US$76 million.
The facility will be developed in two phases. Phase 1, with a capital cost of US$150 million, will deliver AAM production of 500,000 tpa, more than meeting Mitsubishi Chemical's initial requirements of 9,000 tpa. Notably, the site and existing building are in an expedited permit zone, allowing construction to begin without an Environmental Impact Study and Assessment.
Upon completion, the UAE BAF will position NextSource to become the largest anode producer outside of Asia. The company has signed an agreement to secure the industrial building in ICAD, with the signing date shortly before the October 1, 2025, announcement. NextSource awaits expressions of interest for funding the project as it progresses towards construction.
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