Ontario-based battery materials development company NextSource Materials is exploring the establishment of a battery anode facility (BAF) in Saudi Arabia.

Engineering service provider Stantec has completed a Middle East-compliant, conceptual plant design for NextSource, Kallanish reports. Based on the technical and economic study, the proposed facility will have a production capacity of 20,000 tonnes/year of coated spheronised purified graphite (CSPG). It is expected to have capital costs of $280 million, alongside a working capital of $12m.

The “positive” study results also indicate an after-tax net present value (NPV) of $677m and an internal rate of return (IRR) of 20.3%, NextSource says.

The company has already completed site visits in the kingdom to select a potential location for the plant. It explains the region offers “very attractive funding and operating incentives” for local processing facilities, coupled with accelerated permitting and development timeframe.

“Developing a BAF in Saudi Arabia would position us to capitalise on the kingdom’s robust infrastructure, strategic location along shipping routes, and highly supportive business environment,” says Craig Scherba, NextSource’s president and ceo.

A final site selection and construction decision are yet to be made.

The Saudi Arabian facility is part of the company’s wider plan to construct multiple BAFs globally to produce commercial-scale graphite anode active material for lithium-ion batteries in electric vehicles. NextSource is evaluating “key jurisdictions” such as Madagascar, Saudi Arabia, the UAE, and North America.

“NextSource’s vision is to become a global supplier of critical battery materials,” the ceo adds.

The company currently operates the Molo graphite mine in Madagascar – one of the world’s largest known and highest-quality graphite resources. The mine started production roughly a year ago, with phase 1 operations currently undergoing ramp-up to reach the nameplate capacity of 17,000 t/y of graphite concentrate.