NextSource greenlights UAE battery anode facility

NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) said connected Tuesday it has approved a last concern determination connected Phase 1 of its Battery Anode Facility successful Abu Dhabi, advancing its propulsion into vertically integrated anode materials manufacturing.

The determination follows the completion of front-end engineering plan work, which the institution said confirmed the economics and task configuration outlined successful an October 2025 feasibility study.

NextSource said the FEED results provided method validation of the project's design, superior illustration and operating parameters.

The institution noted that struggle successful the Middle East had delayed immoderate enactment streams, though proceeds from a caller C$25 cardinal financing were deployed to implicit the FEED study, beforehand a feasibility survey connected its Molo excavation enlargement successful Madagascar, and advancement task financing efforts.

Under the FID, NextSource is authorized to participate a pre-EPC mobilization signifier covering finalization of spot agreements, aboriginal works contracts, biology and permitting activities, and procurement of long-lead equipment. The signifier volition besides let for instrumentality shipments from China and Mauritius and the hiring of task personnel.

The institution said the FID is structured with conditions precedent and staged backing gates to negociate fiscal vulnerability until outer backing commitments are secured.

The concern determination is supported by a projected strategical concern from a Japanese consortium comprising trading location Hanwa Co and the Japan Organization for Metals and Energy Security, a Japanese authorities bureau known arsenic JOGMEC.

NextSource said it is besides engaged with different equity investors, lenders and improvement concern institutions.

"Approval of the FID represents a important measurement guardant for NextSource and reflects the Board's assurance successful the project's fundamentals, the spot of our financing strategy, and the increasing planetary request for high-quality, vertically integrated anode materials," said CEO Hanre Rossouw successful a statement.

“The UAE proceed to connection a stable, strategically located, and highly supportive situation for precocious materials manufacturing, and today's determination signals our assurance successful moving up portion maintaining disciplined hazard management."

NextSource holds the Molo graphite task successful Madagascar, which the institution describes arsenic 1 of the largest and highest-quality graphite resources globally. The institution has besides signed a multi-year offtake statement with Mitsubishi Chemical Corp for the proviso of anode progressive worldly into North America.