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NextSource Materials Updates Global Anode Expansion Strategy

NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) announces an update on its global anode expansion strategy. The company has shared the positive results of a technical and economic study for a proposed battery anode facility in Saudi Arabia. They have also started a strategic partner process for funding these facilities globally.

NextSource’s Anode Facility Plans

The company plans to construct multiple battery anode facilities globally, producing commercial scale graphite anode active material for EVs. The strategy leverages proprietary anode processing technology already supplying major EV manufacturers like Toyota and Tesla. Key locations include Madagascar, Saudi Arabia, the United Arab Emirates, and North America.

Study Results for Saudi Arabia Facility

The conceptual design and evaluation by Stantec aim to develop Battery Anode Facilities in Saudi Arabia. The proposed facility will produce natural graphite anode active material for lithium-ion batteries in EVs. The study covered the process design, equipment standards, future operational requirements, and environmental permitting.

Main Highlights:

– Production capacity of 20,000 tonnes per annum (tpa) of CSPG
– Full production achievable in 16 months from construction start
– Post-tax NPV8% of $677 million and an IRR of 20.3%
– Capital costs of $280 million plus $12 million in working capital
– Annual forecasted revenues of $230.1 million with an EBITDA of $128.5 million

Strategic Importance of Saudi Arabia

The facility aligns with Saudi Arabia’s Vision 2030, aiming to reduce oil revenue dependence and diversify the economy. The region offers attractive funding and operating incentives, accelerated permitting, and modern infrastructure. The potential site in Yanbu positions the facility strategically along major shipping routes with easy access to raw materials and markets.

NextSource plans to develop an anode processing hub with a total production capacity of 100,000 tpa of CSPG over the next five years.

Looking Ahead

The next steps include site selection and preparing a feasibility study, incorporating front-end engineering, and environmental permitting. The company is in discussions with offtake partners and financiers for funding construction. Commercial production could potentially begin 16 months from the initiation of construction.

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