NextSource Materials Secures Offtake with Mitsubishi Chemical for Graphite Anode Material Supply
Harry Minnis
5 August 2025
Key Highlights:
- NextSource Materials signs binding multi-year offtake with Mitsubishi Chemical Corporation to supply c. 9,000 tpa of anode active material
- Intermediate AAM to be produced at NextSource’s planned Battery Anode Facility in the UAE using SuperFlake® graphite from Madagascar
- Marks a major step toward vertical integration outside China, with full-scale production ramp-up targeted for 2027
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In a major move toward ex-China supply chain integration, NextSource Materials has executed a binding multi-year offtake agreement with Mitsubishi Chemical Corporation (MCC), Japan’s largest chemical company and a leading global supplier of anode active materials (AAM) to major automotive OEMs.
The deal will see NextSource supply approximately 9,000 tonnes per AAM to MCC. Under the agreement, intermediate AAM will be produced at a new Battery Anode Facility (BAF) planned for the United Arab Emirates (UAE), using SuperFlake® graphite sourced from NextSource’s Molo mine in Madagascar. MCC will complete final processing in Japan before delivering material to the OEM’s battery cell facility in North America.
This development is seen as a major step forward for North American EV supply chains, which continue to seek diversified sources of critical minerals amid rising geopolitical tensions and tariff barriers. In July 2025, the U.S. imposed a preliminary 93.5% tariff on anode-grade graphite imports from China, taking the total effective tariff to 160%.
Scaling Up in the UAE
NextSource is now accelerating plans to establish its UAE-based BAF, identifying the region’s streamlined permitting, industrial infrastructure, and proximity to OEM hubs as key advantages.
The company has already procured approximately half of the required processing equipment, with installation expected to begin soon. Final qualification of the facility is targeted for 2026, with full-scale ramp-up planned for 2027.
Commenting on the partnership, NextSource CEO Hanré Rossouw said:
“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.”
Advancing Vertical Integration
The agreement brings NextSource closer to its goal of becoming one of the few fully vertically integrated graphite producers outside China. As demand for battery-grade graphite grows, the company is also preparing for Phase 2 expansion at its Molo mine to meet future volume requirements. The AAM supplied under the MCC agreement will be qualified using SuperFlake® concentrate, which has already undergone initial testing and meets the OEM’s technical standards.
In addition to securing market access, the agreement includes a pricing structure that comprises both a fixed and variable component, ensuring commercial stability while preserving exposure to upside pricing.
Full announcement here: https://money.tmx.com/en/quote/NEXT/news/5057241733784455
