NextSource outlines Saudi graphite anode plan

Staff reporter

A proposed US$280 million graphite anode plant in Saudi Arabia could be accelerated on the back of preliminary design and economic studies and potential automative manufacturer support.

NextSource Materials says Stantec conceptual design and early economic assessment work on a “Middle East compliant” battery anode facility (BAF) in the kingdom outlined prospective annual revenues of circa-US$230 million, EBITDA of $128.5m and an IRR of 20.3% on a plant producing 20,000 tonnes per annum (tpa) of graphite products such as spheronised purified graphite (SPG) and coated SPG (CSPG).

The plant could take 16 months to build.

“The company has launched a strategic partner process to consider expressions of interest it has received for funding the battery anode facilities both in the Middle East and globally,” NextSource said.

It cited original equipment manufacturers such as Lucid Motors, Ceer Motors and Hyundai Motors operating in Saudi Arabia.

NextSource’s producing Molo graphite mine in Madagascar is said to be ramping up to its phase=one nameplate production capacity of 17,000tpa of graphite concentrate.

“The [Saudi Arabia] BAF design will be based on NextSource’s technology partner’s proprietary anode processing technology that is currently supplying SPG and CSPG material to major EV automotive companies including Toyota and Tesla,” it said.

NextSource said Saudi Arabia had identified graphite and anode processing as priority critical battery material production targets under its Vision 2030 blueprint for the country’s economic and social transformation, which aimed to reduce its dependence on oil revenue.

“The [kingdom] offers very attractive funding and operating incentives to locate value-added processing facilities in-country with an accelerated permitting and development timeframe,” NextSource said.


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