NextSource Materials Executes Binding Offtake Agreement with Mitsubishi Chemical Corporation to Supply SuperFlake Graphite Anode Material for the North American EV Market
NextSource Materials (OTCQB:NSRCF) has signed a significant multi-year offtake agreement with Mitsubishi Chemical Corporation (MCC) to supply approximately 9,000 tonnes per annum of anode active material (AAM) for North American EV markets. The partnership involves NextSource producing intermediate AAM at a planned Battery Anode Facility (BAF) in the Middle East, which MCC will process into final AAM at its Japan plant for EV battery cell manufacturing.
The agreement represents a crucial step in NextSource's vertical integration strategy, with production expected to commence in 2027. The company is prioritizing BAF development in the UAE and expanding its Molo mine in Madagascar to ensure sufficient graphite feedstock supply. This strategic move gains additional significance following the recent 160% U.S. tariff on Chinese graphite imports.
NextSource Materials (OTCQB:NSRCF) ha firmato un importante accordo pluriennale di fornitura con Mitsubishi Chemical Corporation (MCC) per la consegna di circa 9.000 tonnellate annue di materiale attivo per anodi (AAM) destinato ai mercati nordamericani dei veicoli elettrici. La partnership prevede che NextSource produca materiale AAM intermedio in un previsto Impianto per Anodi di Batterie (BAF) in Medio Oriente, che MCC trasformerà in materiale AAM finale presso il suo stabilimento in Giappone per la produzione di celle per batterie EV.
L'accordo rappresenta un passaggio fondamentale nella strategia di integrazione verticale di NextSource, con l'inizio della produzione previsto per il 2027. L'azienda sta dando priorità allo sviluppo del BAF negli Emirati Arabi Uniti e all'espansione della miniera di Molo in Madagascar per garantire un'adeguata fornitura di grafite. Questa mossa strategica assume ulteriore importanza dopo il recente 160% di dazio statunitense sulle importazioni di grafite cinese.
NextSource Materials (OTCQB:NSRCF) ha firmado un importante acuerdo plurianual de suministro con Mitsubishi Chemical Corporation (MCC) para entregar aproximadamente 9.000 toneladas anuales de material activo para ánodos (AAM) para los mercados de vehículos eléctricos en Norteamérica. La asociación implica que NextSource produzca material AAM intermedio en una planta planificada de ánodos para baterías (BAF) en Medio Oriente, que MCC procesará en material AAM final en su planta en Japón para la fabricación de celdas de batería para vehículos eléctricos.
El acuerdo representa un paso crucial en la estrategia de integración vertical de NextSource, con la producción prevista para 2027. La compañía está priorizando el desarrollo del BAF en los Emiratos Árabes Unidos y la expansión de su mina Molo en Madagascar para asegurar un suministro suficiente de grafito. Este movimiento estratégico adquiere mayor relevancia tras el reciente arancel estadounidense del 160% sobre las importaciones de grafito chino.
NextSource Materials (OTCQB:NSRCF)는 Mitsubishi Chemical Corporation (MCC)와 북미 전기차(EV) 시장을 위한 연간 약 9,000톤의 음극 활성 물질(AAM) 공급에 관한 다년간의 중요한 공급 계약을 체결했습니다. 이번 파트너십은 NextSource가 중동에 계획된 배터리 음극 시설(BAF)에서 중간 단계의 AAM을 생산하고, MCC가 일본 공장에서 이를 최종 AAM으로 가공해 EV 배터리 셀 제조에 사용하는 것을 포함합니다.
이 계약은 NextSource의 수직 통합 전략에서 중요한 단계로, 생산은 2027년에 시작될 예정입니다. 회사는 아랍에미리트에서 BAF 개발을 우선시하고, 마다가스카르의 몰로 광산 확장을 통해 충분한 흑연 원료 공급을 확보하고 있습니다. 이 전략적 조치는 최근 미국의 중국산 흑연 수입에 대한 160% 관세 부과 이후 더욱 중요해졌습니다.
NextSource Materials (OTCQB:NSRCF) a signé un accord d'approvisionnement pluriannuel important avec Mitsubishi Chemical Corporation (MCC) pour fournir environ 9 000 tonnes par an de matériau actif pour anodes (AAM) destiné aux marchés nord-américains des véhicules électriques. Ce partenariat prévoit que NextSource produira un AAM intermédiaire dans une usine d’anodes pour batteries (BAF) prévue au Moyen-Orient, que MCC transformera en AAM final dans son usine au Japon pour la fabrication de cellules de batteries pour véhicules électriques.
L’accord représente une étape cruciale dans la stratégie d’intégration verticale de NextSource, avec un démarrage de la production prévu en 2027. L’entreprise accorde la priorité au développement du BAF aux Émirats arabes unis et à l’expansion de sa mine de Molo à Madagascar afin d’assurer un approvisionnement suffisant en graphite. Cette démarche stratégique prend une importance accrue après la récente taxe américaine de 160 % sur les importations de graphite chinois.
NextSource Materials (OTCQB:NSRCF) hat eine bedeutende mehrjährige Abnahmevereinbarung mit Mitsubishi Chemical Corporation (MCC) unterzeichnet, um jährlich etwa 9.000 Tonnen Anodenaktivmaterial (AAM) für den nordamerikanischen Elektrofahrzeugmarkt zu liefern. Die Partnerschaft sieht vor, dass NextSource intermediäres AAM in einer geplanten Batterie-Anoden-Anlage (BAF) im Nahen Osten produziert, welches MCC in seiner Anlage in Japan zu finalem AAM für die Herstellung von EV-Batteriezellen verarbeitet.
Die Vereinbarung stellt einen wichtigen Schritt in NextSources Strategie der vertikalen Integration dar, mit Produktionsbeginn voraussichtlich im Jahr 2027. Das Unternehmen priorisiert die Entwicklung der BAF in den Vereinigten Arabischen Emiraten und die Erweiterung der Molo-Mine in Madagaskar, um eine ausreichende Versorgung mit Graphit-Rohmaterial sicherzustellen. Diese strategische Maßnahme gewinnt nach dem jüngsten 160%igen US-Zoll auf chinesische Graphitimporte an zusätzlicher Bedeutung.
- Secured binding offtake agreement for 9,000 tonnes per annum of anode material with major industry player MCC
- Strategic positioning to benefit from 160% U.S. tariff on Chinese graphite imports
- Partnership provides entry into North American EV supply chain with major OEM
- Approximately half of BAF processing equipment already purchased
- Pricing formula includes both fixed and variable components, providing economic stability
- Full-scale production not expected until 2027
- Significant capital requirements for BAF construction and mine expansion still needed
- Agreement subject to conditions precedent and standard termination rights
- Product qualification process still ongoing until 2026
Highlights
Multi-year offtake agreement signed with Mitsubishi Chemical Corporation for supply of c. 9,000 tonnes per annum (tpa) of anode active material
Partnering with Mitsubishi Chemical Corporation to supply major OEM manufacturer anode active material for its North American electric vehicle (EV) market
Accelerates development of NextSource's Battery Anode Facility in the Middle East
Significant milestone towards achieving vertical integration by 2027
TORONTO, ON / ACCESS Newswire / August 5, 2025 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) (NextSource or the Company) and Mitsubishi Chemical Corporation (MCC), Japan's largest chemical company and a leading supplier of anode active material (AAM) to original automotive equipment manufacturers (OEMs), have entered into a binding, multi-year offtake agreement (the Offtake Agreement). Under the terms of the Offtake Agreement, NextSource and MCC have partnered to supply AAM to a major OEM for the North American EV market. NextSource will produce and supply intermediate AAM to MCC's Japan plant where MCC will produce final AAM for the OEM's EV battery cell manufacturing facilities in North America.
This Offtake Agreement represents a major milestone for NextSource in its strategy to become one of very few vertically integrated graphite producers outside of China. The Company is now prioritizing the development of a large-scale Battery Anode Facility (BAF) in the Middle East to meet the volume capacities required for MCC and has identified several prospective sites in the United Arab Emirates (UAE). These locations offer streamlined permitting processes, robust infrastructure, and strategic proximity to other OEMs, enabling the Company to accelerate its timeline and meet growing demand for high-value graphite anode active material.
Hanré Rossouw, President and CEO of NextSource, stated,
"We are excited to have entered into a partnership with Mitsubishi Chemical Corporation through a binding offtake agreement for the production of active anode material in the Middle East, leveraging high-quality graphite feedstock from our Molo mine in Madagascar. This partnership underscores our commitment to delivering sustainable, high-performance anode materials to meet the growing demand from OEM and battery manufacturers. By integrating world-class resource supply with advanced processing capabilities, we are building a resilient and scalable solution that supports global electrification efforts."
Through the phased development of its BAFs, NextSource is establishing a significant downstream value-added business capable of large-scale production of coated, spheronized, and purified graphite (CSPG). These facilities will serve as a secure, transparent, and fully traceable source of supply for battery and OEM customers, entirely decoupled from existing Asian supply chains, and a critical alternative for US Government-compliant supply chains.In July 2025, the U.S. imposed a substantial
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Today's announcement also underpins NextSource's engagement with strategic financing partners where it is in advanced discussions regarding assistance in funding construction of both the large-scale BAF and Molo mine expansion.
Offtake Agreement Terms
The Offtake Agreement designates NextSource as the sole supplier of c. 9,000 tpa of intermediate AAM to MCC for a multi-year term from the commencement of production of the Company's BAF.
This Agreement is further underpinned by a rigorous qualification process. Through close technical collaboration between NextSource and MCC to supply AAM from high-quality SuperFlake® graphite concentrate, the qualification process will be finalized in 2026 through the installation of BAF processing equipment, of which approximately half has already been purchased and awaiting installation. SuperFlake® anode active material will be processed by MCC in Japan and supplied to its OEM customer's cell manufacturing facility in North America, with full-scale ramp-up from 2027.
The pricing formula negotiated with MCC is based on an agreed upon price formula that comprises both a fixed and variable price component which underpins the economics of the project and secures capacity for the offtaker.
The Offtake Agreement is subject to conditions precedent and contains standard termination rights, which are customary for an Offtake Agreement of this nature.
Offtake Capacity Requirements Underpin NextSource's Growth Strategy
Through close technical collaboration, qualification AAM from NextSource, using SuperFlake® graphite from Molo Phase 1 as feedstock, has been provided to and evaluated by MCC for the OEM's battery manufacturer, confirming compliance with its specific anode quality and performance requirements.
The Company has begun preparations for an industry-scale Molo Phase 2 expansion, which is expected to benefit from larger economies of scale, while continuing to qualifying its graphite products and servicing existing key customers through Phase 1 campaign production.
The completion of the technical and economic studies for both the mine and a UAE-based BAF will inform the final investment decisions, including capital requirements and detailed financing plans. The significant potential of an expanded Molo Phase 2 and large-scale BAF in the Middle East offer a strong foundation for growth by securing further offtake agreements for SuperFlake® AAM.
About Mitsubishi Chemical Corporation
Mitsubishi Chemical Corporation is a
For further information, please visit the company website: https://www.mcgc.com/english/
About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.
The Company's Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun production, with Phase 1 mine operations currently being optimized.
The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner.
NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol "NEXT" and on the OTCQB under the symbol "NSRCF".
For further information about NextSource, please visit our website at nextsourcematerials.com
Investors may contact: Brent Nykoliation, Executive Vice President +1.416.364.4911 brent@nextsourcematerials.com
Cautionary Note
This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements include any statements regarding, among others, timing of commissioning and achievement of nameplate capacity, including the processing plant, process improvements and mine plant adjustments as well as production estimates, and financing and timing thereof, the rollout of Battery Anode Facilities including the capabilities and the timing thereof, and achievement of offtake agreements and required financing, and any conditions precedent as part of an offtake agreement. These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will derive there from. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether because of new information, future events or otherwise, except as may be required by applicable securities laws. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
SOURCE: NextSource Materials Inc.
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