NextSource pivots Battery Anode Facility strategy to Middle East
NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) it plans to shift focus to larger-scale development opportunities for its Battery Anode Facility (BAF) project in the Middle East, targeting key sites in Saudi Arabia and the United Arab Emirates.
The Canadian company said the decision follows a prolonged and uncertain regulatory process in Mauritius, which included delays in environmental approvals.
By terminating its lease and withdrawing its Environmental Impact Assessment (EIA) application, NextSource said it will avoid further costs and redeploy its transportable BAF equipment to more favorable jurisdictions.
Hanré Rossouw, CEO said in a statement:
While the decision to terminate our lease in Mauritius has not come lightly, we are excited to pursue larger-scale opportunities in the Middle East, leveraging our expertise and assets to meet global demand more efficiently,
The strategic pivot positions NextSource closer to major electric vehicle (EV) manufacturers and within jurisdictions that offer streamlined permitting, strong infrastructure, and trade advantages. The UAE, for example, faces a 10% reciprocal tariff on US-bound graphite anode material, far lower than tariffs applied to Chinese counterparts.
NextSource said it is in active negotiations with original equipment manufacturers to secure an offtake agreement for its high-value graphite anode product, a critical component in lithium-ion batteries. The company is also receiving positive feedback from product qualification trials, supporting its ambition to build a scalable, secure, and sustainable supply chain.
Battery Anode Facilities are designed to convert graphite concentrate into battery-grade anode material used in electric vehicles.
The company said its shift to the Middle East aligns with growing demand for localized battery material supply chains and global efforts to diversify away from China-dominated production.
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NextSource pivots Battery Anode Facility strategy to Middle East, source
