Canadian battery materials development company NextSource Materials has withdrawn from its project to build a battery anode facility in Mauritius to focus on accelerated, larger-scale opportunities in the Middle East.
NextSource had been working to establish a facility in Mauritius since November 2022. The company leased a potential site and invested in upgrading existing processes to comply with local regulations and minimize environmental impact. However, “due to the prolonged and costly nature of the process, along with the remaining risk of post-approval contestation” of environmental impact assessments (EIAs), the company said it decided to exercise its option to terminate the lease agreement at the end of May and withdraw its EIA application.
The company is now prioritizing the development of a larger-scale battery anode facility in the Middle East, targeting prospective sites in the Kingdom of Saudi Arabia and the United Arab Emirates.
These locations offer streamlined permitting processes, robust infrastructure, and strategic proximity to global EV manufacturers, which would allow NextSource to accelerate its timeline and meet growing demand for high-value graphite anode material, the company said.
NextSource is advancing discussions with potential OEMs to secure an offtake agreement. These negotiations are centered on meeting the specific requirements of OEMs supported by positive feedback from product qualification trials, according to the company.
A move to the Middle East aligns with changing global trade dynamics, including favorable tariff structures in regions like the UAE, which currently faces a 10% US reciprocal tariff compared to higher tariffs on Chinese graphite anode materials.
“NextSource continues to progress our commitment to a sustainable and scalable supply chain for battery anode materials. While the decision to terminate our lease in Mauritius has not come lightly, we are excited to pursue larger-scale opportunities in the Middle East, leveraging our expertise and assets to meet global demand more efficiently,” said Hanré Rossouw, NextSource’s President and CEO.
Source: NextSource Materials
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