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Canada-based NextSource Materials is looking at Saudi as the potential home for a new battery anode plant. The Toronto-listed company is screening interested investors for its proposed USD 280 mn facility in Saudi as well as other plants at which it would also make anodes for lithium-ion batteries, it said in a filing to the Toronto Stock Exchange.
What we know about the plant: It could produce up to 20k tonnes of graphite anode active material for lithium-ion batteries per year, according to the filing. NextSource already runs a similar plant in Madagascar that supplies Toyota and Tesla.
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By the numbers: The plant is forecasted to generate some USD 230 mn in annual revenues with an EBITDA of USD 128.5 mn at full capacity. NextSource has held talks with local battery manufacturers and original equipment manufacturers including PIF-backed EV-maker Lucid as well as Ceer, the Kingdom’s first EV brand.
Where? While it has yet to make a decision to build here, the company named Yanbu Industrial City as its preferred Saudi location, citing its “extensive infrastructure, access to raw materials, commercial zones and shipping routes.” NextSource is now designing the Saudi facility.
SOUND SMART- Battery charging speed is largely determined by graphite, the anode material, which allows fast charging on high-capacity batteries, making graphite essential in the lithium-ion battery industry that powers EVs. It also has use in aerospace, electronics, and construction. China, Brazil, Madagascar, and India are currently the world’s largest graphite producers.
NextSouce says a range of factors make Saudi attractive, including financing for up to 75% of the capital cost of the plant at a low interest rate, competitive energy prices, an expedited licensing process, as well as tax incentives and customs-duty exemptions. The company also points to access to skilled labor and Saudi’s position at the crossroads of Africa, Asia, and Europe.
BACKGROUND- The company wants to build battery anode plants in more than one country. In addition to Saudi Arabia, it is also looking at Madagascar, the United Arab Emirates, and North America.
IN CONTEXT- PIF-backed EV players including Lucid have recently partnered with the King Abdulaziz City for Science and Technology (Kacst) to locally study, test and evaluate EV battery technologies. Earlier this year, Saudi company EV Metals Group inked an agreement with Finnish industrial machinery company Metso to establish a lithium chemicals plant in Yanbu Industrial City — another critical component in lithium-ion batteries.
