NextSource Materials has executed a letter of intent with its Japanese offtake partner and a leading Chinese processor of graphite anode material to collaborate on the construction of a value-add, battery anode plant in a jurisdiction that is proximal to the company’s Molo graphite project in Madagascar.
“The execution of this LOI is part of NextSource’s downstream growth plan and brings together one of the best global processors of graphite anode material and one of the most prominent suppliers of graphite anode material to automotive OEMs globally,” says NextSource Materials president and CEO Craig Scherba.
“This letter of intent to partnership on a SPG plant with such established partners positions NextSource to be a significant and dominant future supplier of high-quality flake graphite to major battery anode customers globally and simultaneously gaining an immediate foothold into the high-growth markets for electric vehicles, as well as the burgeoning energy storage market that will be reliant on graphite anode material,” he adds.
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As announced in October 2018, NextSource Materials signed a 10-year offtake agreement with an unnamed Japanese trading company to purchase 20 000 tpa of Molo’s trademarked SuperFlake graphite for use in battery anode applications for electric and hybrid vehicles.
NextSource’s Japanese partner is a major supplier of SPG for anode material in lithium-ion batteries for electric vehicle and hybrid vehicle applications. Its electric vehicle and hybrid vehicle automotive anode customers are global and currently supply graphite anode material to the majority of Japanese automotive OEMs.
Since 2018, NextSource Materials and its Japanese partner have been in discussions regarding potential supply chain collaboration to supply value-added graphite material using SuperFlake graphite concentrate.
Meanwhile, NextSource Materials’Chinese partner is one of the top processors of spheronized and purified graphite for the electric vehicle and hybrid vehicle markets and has verified that NextSource’s SuperFlake graphite concentrate meets or exceeds all quality requirements for SPG material for electric vehicle and hybrid vehicle automotive applications.
Its electric vehicle and hybrid vehicle anode customers are global, including the North American market and its interest in the partnership with NextSource and the its Japanese partner is to have an additional SPG facility located outside of China and close to a high-quality mine source of flake graphite to supply international automotive OEM customers.
The Molo graphite project is a fully permitted, feasibility-stage project that ranks as one of the largest-known and highest quality flake graphite deposits in the world and is the only project with SuperFlake graphite.