Canada-listed NextSource Materials is developing a $291 million battery anode facility in Abu Dhabi, aiming to establish itself as a leading global producer outside Asia and diversify critical mineral supply chains for the EV industry.
Canada-listed NextSource Materials has recently announced plans to develop a $291 million battery anode facility (BAF) in Abu Dhabi. This move is quite strategic—aimed at positioning the company as the biggest producer of graphite anode active material (AAM) outside of Asia, and it will serve as a critical supplier to Mitsubishi Chemical, a major Japanese chemical company. It’s interesting, right? This development really signals a shift towards building more vertically integrated supply chains, especially as global demand for EV battery components keeps rising.
The facility itself, which is supported by a recent technical and economic study, will initially have a capacity of producing about 30,000 tonnes of high-performance graphite anode material per year. The study—conducted with the help of global engineering firm Stantec—paints a pretty positive picture financially. It estimates a post-tax net present value of around $442 million, an internal rate of return (IRR) of 24%, and projected annual revenues of nearly $195 million once full production levels are hit. The plan is for the project to operate over 33 years, with a payback period of less than five years—so, overall, it seems quite promising.
NextSource’s CEO, Hanré Rossouw, pointed out that acquiring a ready-built industrial site in Abu Dhabi’s Industrial City was a crucial move. I mean, this choice really speeds things up—minimal modifications are needed, and it benefits from faster permitting processes because they’re exempt from environmental impact studies. The phase 1 development is budgeted at $150 million and will produce around 14,000 tonnes annually—this actually exceeds Mitsubishi Chemical’s initial offtake commitment of 9,000 tonnes. They’re aiming for phase 1 to be operational by late 2026, with the full capacity operational sometime early in 2028.
What’s more, the binding multi-year offtake agreement with Mitsubishi Chemical highlights how important this Abu Dhabi facility is for NextSource, and importantly, it establishes the company as Mitsubishi’s sole supplier of AAM for the North American EV market. Mitsubishi’s plant in Japan will convert the graphite anode material produced in the UAE into battery components for major OEMs across North America. It’s part of a broader trend—companies are really trying to secure their supply chains and diversify sources, especially given the heavy reliance on China for graphite.
Now, graphite as a resource is gaining a lot of attention. It’s a key component in lithium-ion batteries—making up roughly 95% of the anode itself and about 35% of the entire battery’s weight. Industry analysts at Benchmark Mineral Intelligence have called graphite the most critical battery material, especially because of geopolitical issues and supply chain vulnerabilities. That’s why there’s a push to find alternative sources outside China. NextSource’s Abu Dhabi facility directly addresses these worries by providing a more secure, traceable supply chain that aligns with US government standards for sourcing critical minerals.
The company currently sources its SuperFlake® graphite from the Molo mine in Madagascar, which is another strategic asset in their vertically integrated model of battery materials production. Interestingly enough, this new UAE facility signifies a shift from their earlier plans to build a similar plant in Mauritius. They decided to go with Abu Dhabi, probably because of the Middle East’s advantageous location, good industrial infrastructure, and an attractive regulatory environment—everything needed for a faster, smoother project development process.
In addition to supplying Mitsubishi Chemical, NextSource is also in advanced talks with other OEMs, suggesting they’re aiming to ramp up capacity further to meet the growing EV market demand. They’re also negotiating with global investors—both debt and equity—to secure funding needed to build and scale the project.
Financially speaking, this project is projected to generate an EBITDA of around $76 million annually. For context, if the sale prices stay in line with current contract price points and market forecasts—say around $6,417 per tonne—the economics look fairly solid. Next steps include finalizing the legal process to acquire the site, completing the front-end engineering design, securing the necessary capital, and starting procurement and installation work. They hope to have the plant up and running by Q4 of 2026.
All in all, this development not only expands NextSource’s footprint in the battery materials sector but also bolsters the UAE’s emerging role as a hub for advanced battery and EV manufacturing. As the global EV market accelerates, projects like NextSource’s Battery Anode Facility are going to be key in diversifying supply sources, reducing geopolitical risks, and pushing forward the region’s climate tech goals—pretty impressive, isn’t it?
Source: Noah Wire Services
- https://mqworld.com/2025/10/02/nextsource-plans-291m-graphite-anode-plant/ – Please view link – unable to able to access data
- https://www.nextsourcematerials.com/nextsource-materials-executes-binding-offtake-agreement-with-mitsubishi-chemical-corporation-to-supply-superflake-graphite-anode-material-for-the-north-american-ev-market/ – NextSource Materials Inc. has entered into a binding, multi-year offtake agreement with Mitsubishi Chemical Corporation to supply approximately 9,000 tonnes per annum of anode active material for the North American electric vehicle market. This partnership marks a significant step towards NextSource’s goal of becoming a vertically integrated graphite producer outside of China. The company is now focusing on developing a large-scale Battery Anode Facility in the Middle East to meet the volume capacities required by Mitsubishi Chemical. The agreement underscores NextSource’s commitment to delivering sustainable, high-performance anode materials to meet the growing demand from OEMs and battery manufacturers.
- https://www.miningweekly.com/article/nextsource-plans-291m-graphite-anode-plant-in-abu-dhabi-2025-10-02 – NextSource Materials has announced plans to build a $291-million battery anode facility in Abu Dhabi, aiming to become the largest anode producer outside Asia and a key supplier to Mitsubishi Chemical under a binding offtake agreement. The facility is projected to produce 30,000 tonnes per annum of anode active material, with initial production slated for late 2026 and full capacity targeted for early 2028. The Abu Dhabi site offers room for expansion to serve additional customers, with advanced negotiations underway with other original-equipment manufacturers. The project is expected to provide a secure and traceable source of supply fully compliant with US government requirements for alternative sourcing.
- https://www.tipranks.com/news/company-announcements/nextsource-materials-secures-site-for-uae-battery-anode-facility-announces-positive-study-results – NextSource Materials Inc. has announced positive results from a technical and economic study for a proposed battery anode facility in the UAE, with a production capacity of 30,000 tonnes per annum. The facility, to be developed in two phases, will initially produce 14,000 tonnes per annum to meet Mitsubishi Chemical’s requirements, with full production expected by early 2028. The project, with a capital cost of US$291 million, is expected to generate annual revenues of US$195 million and an EBITDA of US$76 million. The company has secured an industrial site in Abu Dhabi, strategically located for rapid installation and expansion, and is in discussions with potential partners for funding.
- https://www.gurufocus.com/news/3126706/nextsource-materials-announces-positive-results-of-technical-economic-study-for-proposed-battery-anode-facility-in-the-uae-and-secures-industrial-site-with-building-in-abu-dhabi – NextSource Materials Inc. has announced positive results from a technical and economic study for a proposed battery anode facility in the UAE, with a production capacity of 30,000 tonnes per annum. The facility, to be developed in two phases, will initially produce 14,000 tonnes per annum to meet Mitsubishi Chemical’s requirements, with full production expected by early 2028. The project, with a capital cost of US$291 million, is expected to generate annual revenues of US$195 million and an EBITDA of US$76 million. The company has secured an industrial site in Abu Dhabi, strategically located for rapid installation and expansion, and is in discussions with potential partners for funding.
- https://graphitehub.com/nextsource-secures-offtake-with-mitsubishi-chemical-for-graphite-anode-material-supply/ – NextSource Materials has executed a binding multi-year offtake agreement with Mitsubishi Chemical Corporation to supply approximately 9,000 tonnes per annum of anode active material for the North American electric vehicle market. Intermediate AAM will be produced at a new Battery Anode Facility planned for the United Arab Emirates, using SuperFlake® graphite sourced from NextSource’s Molo mine in Madagascar. This development is seen as a major step forward for North American EV supply chains, which continue to seek diversified sources of critical minerals amid rising geopolitical tensions and tariff barriers.
- https://www.tipranks.com/news/the-fly/nextsource-materials-executes-binding-offtake-agreement-with-mitsubishi-chemical-thefly – NextSource Materials and Mitsubishi Chemical Corporation have entered into a binding, multi-year offtake agreement. Under the terms of the agreement, NextSource will produce and supply intermediate anode active material to Mitsubishi Chemical’s Japan plant, where it will be processed and supplied to a major OEM’s EV battery cell manufacturing facilities in North America. This agreement represents a significant milestone for NextSource in its strategy to become one of the few vertically integrated graphite producers outside of China. The company is now prioritizing the development of a large-scale Battery Anode Facility in the Middle East to meet the volume capacities required for Mitsubishi Chemical.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on a press release issued by NextSource Materials on October 1, 2025, detailing the results of a technical and economic study for a proposed battery anode facility in the UAE and the securing of an industrial site in Abu Dhabi. ([nextsourcematerials.com](https://www.nextsourcematerials.com/nextsource-materials-announces-positive-results-of-technical-economic-study-for-proposed-battery-anode-facility-in-the-uae-and-secures-industrial-site-with-building-in-abu-dhabi/?utm_source=openai)) This indicates high freshness, as the information is current and directly from the company.
Quotes check
Score:
10
Notes:
The narrative includes direct quotes from Hanré Rossouw, President and CEO of NextSource Materials, as well as specific figures and projections. These quotes and data points are consistent with the press release issued by the company on October 1, 2025. ([nextsourcematerials.com](https://www.nextsourcematerials.com/nextsource-materials-announces-positive-results-of-technical-economic-study-for-proposed-battery-anode-facility-in-the-uae-and-secures-industrial-site-with-building-in-abu-dhabi/?utm_source=openai)) This suggests that the quotes are original and directly sourced from the company’s official communication.
Source reliability
Score:
10
Notes:
The narrative originates from NextSource Materials, a publicly listed company, and references their official press release. The press release is accessible on the company’s official website, indicating a high level of reliability. ([nextsourcematerials.com](https://www.nextsourcematerials.com/nextsource-materials-announces-positive-results-of-technical-economic-study-for-proposed-battery-anode-facility-in-the-uae-and-secures-industrial-site-with-building-in-abu-dhabi/?utm_source=openai))
Plausability check
Score:
10
Notes:
The claims made in the narrative align with the information provided in the company’s press release, including the planned production capacity, capital costs, projected revenues, and the strategic partnership with Mitsubishi Chemical Corporation. The details about the facility’s location in Abu Dhabi and the expected timeline for production are also consistent. ([nextsourcematerials.com](https://www.nextsourcematerials.com/nextsource-materials-announces-positive-results-of-technical-economic-study-for-proposed-battery-anode-facility-in-the-uae-and-secures-industrial-site-with-building-in-abu-dhabi/?utm_source=openai)) This consistency across multiple reputable sources supports the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is based on a recent press release from NextSource Materials, detailing their plans for a battery anode facility in the UAE. The information is current, directly sourced from the company, and consistent with other reputable sources, indicating a high level of reliability and plausibility.
