NextSource Materials secures US$30M from Japanese partners for UAE battery anode facility

NextSource Materials Inc. has signed a binding agreement for Japanese trading company Hanwa and the Japan Organization for Metals and Energy Security (JOGMEC) to take a 15% stake in its battery anode facility in Abu Dhabi through a US$30 million investment.

The Share Subscription Agreement sets out the framework for the partnership between NextSource, Hanwa and JOGMEC, an agency of the Japanese government. Hanwa and JOGMEC will hold their interest through a jointly owned investment vehicle. The US$30 million includes their contribution to capital expenditures for the first phase. NextSource will retain 85% of the facility, and the ownership structure takes effect when the subscription transaction closes.

The facility is being developed as a strategic, independent source of battery anode materials and an alternative to existing supply chains. Proceeds from the investment will help fund the project.

The project has continued to advance through the pre-EPC mobilization phase. Work includes finalizing property agreements and approvals, awarding early-works contracts, progressing environmental and permitting activities, initiating long-lead procurement for key equipment and hiring essential project personnel.

Following the Final Investment Decision announced on May 12, 2026, the project is being advanced through staged funding gates to support disciplined capital deployment while the company continues to finalize external funding commitments.

NextSource is in advanced discussions with additional strategic investors about a further 35% interest in the project company. After receiving multiple expressions of interest to provide loan finance, it is also progressing discussions with potential debt providers.