NextSource Materials Executes Binding Offtake Agreement with Mitsubishi Chemical Corporation to Supply SuperFlake® Graphite Anode Material for the North American EV Market
NextSource Materials Executes Binding Offtake
Agreement with Mitsubishi Chemical Corporation to
Supply SuperFlake® Graphite Anode Material
for the North American EV Market
Highlights
• Multi-year offtake agreement signed with Mitsubishi Chemical Corporation for supply
of c. 9,000 tonnes per annum (tpa) of anode active material
• Partnering with Mitsubishi Chemical Corporation to supply major OEM manufacturer
anode active material for its North American electric vehicle (EV) market
• Accelerates development of NextSource’s Battery Anode Facility in the Middle East
• Significant milestone towards achieving vertical integration by 2027
TORONTO, ON / ACCESS Newswire / August 5, 2025 / NextSource Materials Inc. (TSX:NEXT)
(OTCQB:NSRCF) (NextSource or the Company) and Mitsubishi Chemical Corporation (MCC),
Japan’s largest chemical company and a leading supplier of anode active material (AAM) to original
automotive equipment manufacturers (OEMs), have enter ed into a binding, multi -year offtake
agreement (the Offtake Agreement). Under the terms of the Offtake Agreement, NextSource and
MCC have partnered to supply AAM to a major OEM for the North American EV market. NextSource
will produce and supply intermediate AAM to MCC’s Japan plant where MCC will produce final AAM
for the OEM’s EV battery cell manufacturing facilities in North America.
This Offtake Agreement represents a major milestone for NextSource in its strategy to become one
of very few vertically integrated graphite producers outside of China. The Company is now prioritizing
the development of a large-scale Battery Anode Facility (BAF) in the Middle East to meet the volume
capacities required for MCC and has identified several prospective sites in the United Arab Emirates
(UAE). These locations offer streamlined permitting processes, robust infrastructure, and strategic
proximity to other OEMs, enabling the Company to accelerate its timeline and meet growing demand
for high-value graphite anode active material.
Hanré Rossouw, President and CEO of NextSource, stated,
“We are excited to have entered into a partnership with Mitsubishi Chemical Corporation through a
binding offtake agreement for the production of active anode material in the Middle East, leveraging
high-quality graphite feedstock from our Molo mine in Madagascar. This partnership underscores our
commitment to delivering sustainable, high -performance anode materials to meet the growing
demand from OEM and battery manufacturers. By integra ting world -class resource supply with
advanced processing capabilities, we are building a resilient and scalable solution that supports
global electrification efforts.”
Through the phased development of its BAFs, NextSource is establishing a significant downstream
value-added business capable of large -scale production of coated, spheronized, and purified
graphite (CSPG). These facilities will serve as a secure, transparent, and fully traceable source of
supply for battery and OEM customers, entirely decoupled from existing Asian supply chains, and a
critical alternative for US Government-compliant supply chains. In July 2025, the U.S. imposed a
substantial 160% total tariff on anode -grade graphite imports from China, combining a 93.5% anti -
dumping duty with additional countervailing measures.
More than 95% of the anode (negative) side of EV batteries is made from graphite, making it the
most critical raw material of all battery metals (Benchmark Mineral Intelligence, July 2025). In parallel,
NextSource has begun preparations to expand its Molo mine operations to ensure sufficient and
secure graphite feedstock supply to support the Offtake Agreement with MCC.
Today’s announcement also underpins NextSource’s engagement with strategic financing partners
where it is in advanced discussions regarding assistance in funding construction of both the large -
scale BAF and Molo mine expansion.
Offtake Agreement Terms
The Offtake Agreement designates NextSource as the sole supplier of c. 9,000 tpa of intermediate
AAM to MCC for a multi-year term from the commencement of production of the Company’s BAF.
This Agreement is further underpinned by a rigorous qualification process. Through close technical
collaboration between NextSource and MCC to supply AAM from high-quality SuperFlake®
graphite concentrate, the qualification process will be finalized in 2026 through the installation of
BAF processing equipment, of which approximately half has already been purchased and awaiting
installation. SuperFlake® anode active material will be processed by MCC in Japan and supplied to
its OEM customer’s cell manufacturing facility in North America, with full-scale ramp-up from 2027.
The pricing formula negotiated with MCC is based on an agreed upon price formula that comprises
both a fixed and variable price component which underpins the economics of the project and
secures capacity for the offtaker.
The Offtake Agreement is subject to conditions precedent and contains standard termination rights,
which are customary for an Offtake Agreement of this nature.
Offtake Capacity Requirements Underpin NextSource’s Growth Strategy
Through close technical collaboration, qualification AAM from NextSource, using SuperFlake®
graphite from Molo Phase 1 as feedstock, has been provided to and evaluated by MCC for the OEM’s
battery manufacturer, confirming compliance with its specific anode quality and performance
requirements.
The Company has begun preparations for an industry -scale Molo Phase 2 expansion , which is
expected to benefit from larger economies of scale, while continuing to qualifying its graphite
products and servicing existing key customers through Phase 1 campaign production.
The completion of the technical and economic studies for both the mine and a UAE-based BAF will
inform the final investment decision s, including capital requirements and detailed financing plans.
The significant potential of an expanded Molo Phase 2 and large-scale BAF in the Middle East offer
a strong foundation for growth by securing further offtake agreements for SuperFlake® AAM.
About Mitsubishi Chemical Corporation
Mitsubishi Chemical Corporation is a 100% -owned subsidiary of Mitsubishi Chemical Group
Corporation. Mitsubishi Chemical Group aims to be a “Green Specialty Company” committed to
solving social problems and to delivering impressive results to customers with the power of materials,
under its Purpose that "We lead with innovative solutions to achieve KAITEKI, the well -being of
people and the planet." Mitsubishi Chemical Group Corporation is listed on the Tokyo Stock
Exchange Prime Market (Code: 4188).
For further information, please visit the company website: https://www.mcgc.com/english/
About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada
that is intent on becoming a vertically integrated global supplier of battery materials through the
mining and value-added processing of graphite and other minerals.
The Company’s Molo graphite project in Madagascar is one of the largest known and highest-quality
graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun
production, with Phase 1 mine operations currently being optimized.
The Company is also developing a significant downstream graphite value -add business through the
staged rollout of Battery Anode Facilities capable of large -scale production of coated, spheronized
and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian
supply chains, in a fully transparent and traceable manner.
NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol “NEXT” and
on the OTCQB under the symbol “NSRCF”.
For further information about NextSource, please visit our website at nextsourcematerials.com
Investors may contact: Brent Nykoliation, Executive Vice President +1.416.364.4911
Cautionary Note
This press release contains statements that may constitute “forward-looking information” or “forward -looking statements”
within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place undue
reliance on forward -looking information or statements. Forward lookin g statements and information are frequently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “poss ible”
and other similar words, or statements that certain events or conditions “may”, “ will”, “could”, or “should” occur. Forward -
looking statements include any statements regarding, among others, timing of commissioning and achievement of nameplate
capacity, including the processing plant, process improvements and mine plant adjustments as well as production estimates,
and financing and timing thereof, the rollout of Battery Anode Facilities including the capabilities and the timing thereof, and
achievement of offtake agreements and required financing, and any conditions precedent as part of an offtake agreement .
These statements are based on current expectations, estimates and assumptions that involve a number of risks, which could
cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described
in the forward-looking statements contained in this press release. No assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits the Company will
derive there from. The forward-looking statements contained in this news release are made as at the date of this news release
and the Company does not undertake any obligation to update pub licly or to revise any of the forward -looking statements,
whether because of new information, future events or otherwise, except as may be required by applicable securities laws.
Although the forward -looking statements contained in this news release are ba sed on what management believes are
reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-
looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary
statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-
looking statements contained herein to reflect events or circumstances occurring after the date of this news release.