NextSource advances with final investment in Abu Dhabi anode facility
NextSource Materials Inc. says it has approved a final investment decision on Phase 1 of its Battery Anode Facility in Abu Dhabi, advancing its push into vertically integrated anode materials manufacturing.
The decision follows the completion of front-end engineering design work, which the company said confirmed the economics and project configuration outlined in an October 2025 feasibility study.
NextSource said the FEED results provided technical validation of the project’s design, capital profile and operating parameters.
The company noted that conflict in the Middle East had delayed some work streams, though proceeds from a recent C$25 million financing were deployed to complete the FEED study, advance a feasibility study on its Molo mine expansion in Madagascar, and progress project financing efforts.
Under the FID, NextSource is authorized to enter a pre-EPC mobilization phase covering finalization of property agreements, early works contracts, environmental and permitting activities, and procurement of long-lead equipment. The phase will also allow for equipment shipments from China and Mauritius and the hiring of project personnel.
The company said the FID is structured with conditions precedent and staged funding gates to manage financial exposure until external funding commitments are secured.
The investment decision is supported by a proposed strategic investment from a Japanese consortium comprising trading house Hanwa Co and the Japan Organization for Metals and Energy Security, a Japanese government agency known as JOGMEC.
NextSource said it is also engaged with other equity investors, lenders and development finance institutions.
“Approval of the FID represents a significant step forward for NextSource and reflects the Board’s confidence in the project’s fundamentals, the strength of our financing strategy, and the growing global demand for high-quality, vertically integrated anode materials,” said CEO Hanre Rossouw in a statement.
“The UAE continue to offer a stable, strategically located, and highly supportive environment for advanced materials manufacturing, and today’s decision signals our confidence in moving ahead while maintaining disciplined risk management.”
NextSource holds the Molo graphite project in Madagascar, which the company describes as one of the largest and highest-quality graphite resources globally. The company has also signed a multi-year offtake agreement with Mitsubishi Chemical Corp for the supply of anode active material into North America.
