NextSource Materials Secures Binding Agreement for US$30 Million Strategic Investment from Japan's Hanwa and JOGMEC to Advance its UAE Battery Anode Facility
Highlights:
- Binding Share Subscription Agreement executed with strategic Japanese consortium
- NextSource has entered into a binding Share Subscription Agreement ("SSA") with Hanwa Co., Ltd ("Hanwa") and the Japan Organization for Metals and Energy Security ("JOGMEC"), an agency of the Japanese government, establishing the purchase of a 15% ownership interest at the project level in NextSource's Battery Anode Facility ("BAF") in the United Arab Emirates ("UAE").
- US$30 million investment for 15% interest in NSM's BAF subsidiary in the UAE
- US$30 million strategic investment by Hanwa and JOGMEC, through their jointly owned investment vehicle, for a 15% equity interest in the UAE BAF project company, with NextSource retaining 85% ownership upon closing.
- Strategic partnership, supported by fully contracted route to market
- A Shareholders' Agreement ("SHA") is expected to be executed shortly following the SSA to establish a strategic partnership for the UAE BAF.
- NextSource's BAF-produced natural graphite anode material is intended to suppy a major manufacturing company's EVs through a binding contractual offtake agreement, with NextSource as the sole supplier for a multi-year term.
- Near-term production, followed by staged expansion
- Phase 1 of the UAE BAF is designed to produce approximately 14,000 tonnes per annum of anode material, with ramp-up expected to begin in H2 2027, with planned expansion to approximately 30,000 tonnes per annum
- The project is advancing through pre-EPC mobilization following the Final Investment Decision announced on May 12, 2026
- Phase 1 of the UAE BAF is designed to produce approximately 14,000 tonnes per annum of anode material, with ramp-up expected to begin in H2 2027, with planned expansion to approximately 30,000 tonnes per annum
- Further funding workstreams progressing
- The Company is in advanced discussions with additional strategic investors regarding a further 35% interest in the UAE BAF project company, and is progressing debt financing discussions following multiple expressions of interest from prospective lenders.
TORONTO, ON / ACCESS Newswire / September 28, 2026 / NextSource Materials Inc. (TSX:NEXT)(OTCQB:NSRCF) ("NextSource" or the "Company") is pleased to announce that it has executed a binding Share Subscription Agreement with Hanwa Co. Ltd., a major Japanese trading company, and the Japan Organization for Metals and Energy Security, an agency of the Japanese government, establishing the definitive framework for their strategic partnership and investment in the Company's Battery Anode Facility in Abu Dhabi, UAE.
Under the SSA, Hanwa and JOGMEC will acquire a 15% equity interest in the UAE BAF through a jointly owned investment vehicle, funded by a US$30 million strategic investment that includes their contribution to capital expenditures for the first phase. NextSource will retain an 85% equity interest in the BAF. The parties expect to enter into the related Shareholders' Agreement ("SHA") shortly following execution of the SSA, which will govern their respective rights and obligations as shareholders and establish the framework for the funding, development, construction and operation of the BAF. The agreed ownership structure will become effective upon closing of the subscription transaction.
Hanré Rossouw, President and CEO of NextSource, commented:
"The finalization of the Hanwa and JOGMEC investment in the UAE Battery Anode Facility marks a significant milestone for NextSource. Our partnership with Hanwa and JOGMEC brings deep expertise in global battery materials, supply chains and critical mineral security, and their planned US$30 million investment provides strong validation of our strategy to establish a vertically integrated, independent supply chain of battery anode materials."
The UAE BAF is being developed as a strategic, independent source of battery anode materials and an alternative to existing supply chains.
Use of Proceeds and Project Progress
Proceeds from the investment will be used as a source of funding for the BAF project. The forthcoming SHA will establish the framework for the funding, development, construction and operation of the project.
The project has continued to advance through the pre-EPC mobilization phase, including 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.
Next Steps
The Company is in advanced discussions with additional strategic investors regarding a further 35% interest in the UAE BAF project company and, following receipt of multiple expressions of interest to provide loan finance, is progressing discussions with potential debt providers. The Company will provide an update on these workstreams, and on closing of the Hanwa and JOGMEC subscription, in due course.
View the original on ACCESS Newswirebayaw
News by QuoteMedia - http://www.quotemedia.com
Copyright (c) 2026 QuoteMedia, Inc.