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Mick Davis's NextSource Materials to build battery anode facility

Kitco News

NextSource Materials (TSX:NEXT) announced today it is building a battery anode facility to produce spheronized and purified graphite required in lithium-ion batteries for electric vehicles and hybrid vehicles.

Graphite will be supplied by NextSource's Molo graphite project in Madagascar. NextSource is headquartered in Toronto, Canada.

The location hasn't be finalized yet. Commissioning of the battery anode facility is targeted for Q4 2022 and will be located proximal to key demand markets for graphite anode material, said NextSource in a news release. The company said it is considering jurisdictions in South Africa, Europe and North America to build the facility.

The plant is coming together with a three-way deal: a Japanese offtake partner and the Japanese Partner's Chinese SPG processing partner.

"The Japanese Partner is a prominent Japanese trading company who is a major supplier of SPG for anode material in lithium-ion batteries for EV and HEV applications. It currently supplies graphite anode material to the majority of Japanese automotive OEMs and the Tesla supply chain," said NextSource in a news release.

"The Chinese Partner is a leading processor of SPG for the EV and HEV markets who owns and operates graphite anode processing facilities in China. This Chinese Partner is regarded by OEM anode producers to be a best-in-class processor and one of the highest quality suppliers of SPG globally."

NextSource chair Mick Davis was formerly CEO of Glencore.

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