NextSource Materials has announced that it intends to assess emerging opportunities to accelerate expansion of its organic growth strategy through the potential acquisition and development of additional metals and mineral assets expected to play a vital role in associated clean energy technologies.
Following recent discussions with the Company’s existing offtake partners in graphite, many of whom are significant participants in the global supply and trading of battery materials, there is clear enthusiasm for NextSource to secure additional capacity in graphite and other critical minerals.
NextSource’s management will be conducting further meetings with its offtake partners, and other strategic parties, in September to discuss how best to create additional value in complementary commodities by exploiting NextSource’s growing capabilities and network.
NextSource’s current commodity portfolio of graphite and vanadium is already strongly aligned with expected demand for electric vehicles and large-scale energy storage systems, providing an ideal platform to expand further into the critical mineral supply chain.
In recent months, since the completion of the Vision Blue investment in NextSource, a close working relationship has developed between the two companies and their management teams. As a result, both companies have recognised the potential for increased collaboration and mutual benefit across the asset evaluation, investment and development cycle. Vision Blue is NextSource’s largest shareholder and is a private investment company with a focus on metals and minerals linked to the clean energy revolution.
As previously announced, the Company’s Molo graphite and Green Giant vanadium projects continue to progress with; i) commencement of a metallurgical optimisation study for the vanadium asset; and ii) the construction of the Molo mine in Madagascar on track and on budget to commission in mid-2022.
In addition, NextSource is now accelerating completion of the technical studies already underway for both its Phase 2 expansion of the Molo graphite mine (“Molo Project”) and for its stand-alone, battery anode facility in which to value-add its SuperFlake® concentrate.
Craig Scherba, CEO of NextSource Materials commented,
“Realising our vision of building a company capable of providing the next source of critical minerals to power the clean energy revolution requires clear and timely communication with all stakeholders and strategic partners.
It is evident that the market for battery materials is on the cusp of significant growth and NextSource is well positioned to capture this opportunity. The next step is further discussion with our offtake partners, global electric vehicle OEM’s and other strategic parties that have approached NextSource as a potential supplier to fully capture opportunities to create value by building on the platform we have already established.
Our technical teams continue to make excellent progress in constructing Phase 1 of the Molo Project. We are now accelerating the technical studies for Phase 2 of the Molo mine and our planned battery anode facility to meet the expected and growing demand from OEMs for a sustainable source from whom they can secure supply of high-quality graphite.”