A new battery anode facility: Canadian battery materials developer NextSource is moving forward with plans to establish a 30k tons per annum (tpa) battery anode facility in the UAE after completing a technical and economic study and securing an industrial site in Abu Dhabi’s Industrial City (ICAD), according to a press release. The company has also launched a process to bring in strategic partners to help finance the project, which is central to its target of becoming vertically integrated by 2027.

Production and economics: The facility will be built in two phases; phase 1 targets 14k tpa capacity of anode active material (AAM), while the full build-out will bring output to 30k tpa. Initial production is scheduled for 4Q 2026, with full output expected by early 2028. The project carries a total capex of USD 291 mn, including USD 13 mn in sunk costs, with phase 1 estimated at USD 150 mn. Forecasts put expected annual revenue at USD 195 mn.

The firm chose the site due to its proximity to ports, industrial hubs, and transport corridors that make it easy to serve both local and global EV supply chains, as well as its expedited permit process.

Backed by Mitsubishi offtake: The project supports NextSource’s multi-year supply agreement with Mitsubishi Chemical Corporation, inked in August, for 9k tpa of AAM destined for the North American EV market. The Abu Dhabi facility is designed to cover Mitsubishi’s requirements and support further original equipment manufacturer (OEM) offtakes.

Decoupled from China: The plant will produce natural graphite AAM for EV lithium-ion batteries, offering a fully traceable supply chain that bypasses China. With graphite making up 95% of an anode’s weight — and 35% of a battery’s total — the facility aims to provide a compliant alternative source for US and allied markets. NextSource and Stantec — its engineering partner — developed a UAE-compliant design using established processing tech to shorten qualification times for OEMs.

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