HomeBattery metalsNextSource secures commercial offtake agreement

NextSource secures commercial offtake agreement

NextSource Materials has executed an offtake agreement with thyssenkrupp Materials Trading for a long-term commercial agreement for the sale of NextSource’s SuperFlake graphite products.

Wolfgang Schnittker, CEO of thyssenkrupp Materials Trading commented:

“The trustful cooperation with NextSource enables us to further expand our strong presence in the international foundry and refractories industry. It is our unique selling point to competitively serve various industries but especially emerging industries and their highly specified requirements.”

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NextSource President and CEO, Craig Scherba said:

“This executed offtake agreement for the sale of our SuperFlake graphite was the culmination of a multi-year process and is yet another significant milestone in the Company’s strategy in becoming a graphite producer of consequence. We are extremely pleased to formalize this partnership with thyssenkrupp given their expertise, scale, and extensive global distribution network. We look forward to expanding our relationship together as we organically expand our graphite market share over the years to come.”

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Jörg Glebe, COO of thyssenkrupp Materials Trading and responsible for the minerals business added:

“The partnership with NextSource underlines the consistent continuation of our activities to expand our high-quality graphite supply sources outside of China. In particular, the distribution range of the graphite flakes enables us to supply our customers even more in accordance with their needs and to support them in their long-term growth plans.”

Highlights

  • Long-term binding commercial agreement between the parties for the sale of approximately 35,000 tonnes per annum of SuperFlake graphite concentrate from the Company’s Molo mine in Madagascar.
  • The term of the agreement is 10 years with an automatic 5-year extension.
  • Product will be for the refractory and expandable graphite markets for sale in, but not limited to, Europe, the United Kingdom, North America, Mexico, China and South Korea.
  • As Phase 1 initial production of the Molo mine in Madagascar will be approximately 17,000, the requested offtake sales volumes by thyssenkrupp will be phased:
  • Minimum of 7,300 tpa during Phase 1 initial production, with commissioning targeted in April 2022.
  • Additionally up to 35,000 tpa to be available in Phase 2, with targeted production by Q2 of 2024
  • The initial tonnage volume will be used by thyssenkrupp to verify run-of-mill production of SuperFlake, which will then trigger the much larger volume expansion of 35,000 tonnes requested.

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