Northern Graphite and Al Obeikan Group for Investment Company Sign Term Sheet for US$200 Million Battery Anode Material Plant in Kingdom of Saudi Arabia Joint Venture Company to be 51% owned by Obeikan and 49% by Northern
Northern Graphite and Al Obeikan Group for
Investment Company Sign Term Sheet for
US$200 Million Battery Anode Material Plant in
Kingdom of Saudi Arabia
Joint Venture Company to be 51% owned by Obeikan and 49% by Northern
Project debt financing to be sourced from Saudi government finance agencies, local and
global commercial banks
Phase I BAM production capacity of 25,000 tonnes per year forecast for 2028; scalable
expansion to meet growing global demand
Advanced discussions underway with global battery manufacturers regarding long-term
offtake agreements for the initial 25,000 tpy of production
Northern and JVCo to conclude long-term offtake agreement for purchase of up to 50,000
tpy of graphite concentrate from Northern's Okanjande mine in Namibia
Project aligned with Saudi Arabia's Vision 2030 and accelerating demand for secure, non-
Chinese graphite anode supply chains
Ottawa, Ontario and Riyadh, Kingdom of Saudi Arabia--(Newsfile Corp. - January 14, 2026) - Northern
Graphite Corporation
(TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(
the "
Company
" or
"
Northern
")
and Al Obeikan Group for Investment Company
("Obeikan")
are pleased to announce that
they have signed a term sheet to jointly develop and operate a large-scale Battery Anode Material
("BAM")
facility in Yanbu Industrial City, Kingdom of Saudi Arabia, through a joint venture company
("
JVCo
").
The term sheet, signed January 14, outlines the development of an approximately
US$200 million
BAM
facility with an
initial production capacity of 25,000 tonnes per year ('tpy")
scalable over time to
meet rapidly growing global demand for graphite anode materials sourced outside of China. The facility
will be located in Yanbu, a strategically positioned industrial and logistics hub on the Red Sea with direct
access to European, North American, and Middle Eastern markets.
The
JVCo
is to be majority-owned (51 percent) by Obeikan, a Kingdom of Saudi Arabia diversified
industrial group engaged in packaging, printing, building glass, real estate and the digitalization of
industrial operation processes in the Middle East and Africa, and 49 percent owned by Northern.
Construction of the facility is expected to start in 2026, with first-phase production forecast to begin in
2028. The BAM facility will be funded at the JVCo level, with Obeikan leading the organizing of local debt
funding required to finance construction, development and commissioning of the Yanbu plant. The
remaining funding is to be provided as equity by the JV partners in proportion to their ownership
interests and jointly through commercial banks.
Negotiations with global battery manufacturers with respect to a long term 25,000 tpy BAM offtake
agreement are well advanced. The JVCo will also enter into a long term offtake agreement to purchase
up to 50,000 tpy of graphite concentrate from Northern's Okanjande Project in Namibia. In recognition of
Northern's efforts in developing, assembling and integrating the required technologies, validating the
products, establishing commercial relationships and a customer qualification pipeline, the
JVCo and
Northern will conclude
a long-term agreement whereby Northern will receive a royalty on net sales of
Battery Anode Materials in addition to its direct ownership interest in JVCo.
"This joint venture represents a defining step in Northern's evolution from a mining company into a fully
integrated, global battery anode material producer," said
Hugues Jacquemin
,
Chief Executive
Officer of Northern Graphite
. "By partnering with Obeikan in the Kingdom of Saudi Arabia, we are
partnering with a well-financed and experienced industrial player, gaining scale, financing strength, and
access to one of the world's most strategically important industrial hubs, while accelerating the restart of
our Okanjande mine in Namibia and advancing our broader mine-to-market strategy."
"Our partnership with Northern is fully aligned with the Kingdom's ambition to lead in advanced materials
and clean energy supply chains," said
Abdallah Obeikan
,
Chief Executive Officer
of Al Obeikan
Group for Investment Company. "This partnership will combine Northern's expertise with the industrial
knowledge of Obeikan and the strength of Saudi Arabia. Together, we intend to establish a world-class
BAM production hub in Yanbu that serves global battery manufacturers while strengthening the resilience
of international supply chains."
The joint venture provides scale, financing strength, and geopolitical diversification and will establish
Northern as a fully integrated, globally relevant BAM producer and partner of choice for OEMs seeking
secure, traceable supply chains. It also positions Okanjande as Northern's primary growth engine,
responding directly to global efforts to reduce dependence on China for graphite supply. The Yanbu
BAM plant will form part of a fully integrated, traceable, multi-jurisdiction supply chain for high-
performance anode material - the largest component in lithium-ion batteries - to global battery and
electric vehicle manufacturers. The project is fully aligned with
Saudi Arabia's Vision 2030
, which
prioritizes advanced manufacturing, energy transition technologies, and downstream value creation.
"The Kingdom of Saudi Arabia is an attractive location for our BAM plant due to its low energy and
labour costs, close proximity to Namibia, strong government support, favourable financing conditions,
and trade advantages that include low tariffs into the U.S. and efficient access to European markets,"
said Mr. Jacquemin.
According to SNE Research, lithium-ion battery cell manufacturing capacity is expected to reach 4,527
GWh by 2035 (9% CAGR), with graphite retaining over 91% anode share through 2040. At the same
time, evolving policies are splitting the global graphite market as tariffs and de-risking measures drive
demand for non-Chinese anode materials.
Okanjande Mine Restart and Expansion
Importantly, the joint venture materially accelerates the restart and potential expansion of Northern's
Okanjande graphite mine in Namibia, which has been on care and maintenance since 2018 and
represents an opportunity to substantially increase the Company's graphite production at a lower cost
and with a shorter time to market than most competing projects. A preliminary economic assessment
("PEA") for the Okanjande project was prepared in accordance with NI 43 101 and filed under the
Company's profile on SEDAR+ (
www.sedarplus.ca
) on August 28, 2023.
The PEA contemplates 31,000
tpy of production over a ten year mine life.
However, the project contains a substantial measured and
indicated resource and the Company intends to prepare a new technical report to evaluate the
economics of producing at a higher rate based on the requirements of the JVCo.
Technical Flow and Integration
The project will operate as part of a globally integrated mining and processing chain designed to provide
OEMs with a secure, non-Chinese supply of battery anode material:
Stage
Location
Mining & Concentrate Production
Okanjande Mine - Namibia
BAM Production (Spheronization, purification and
coating)
Yanbu - Kingdom of Saudi Arabia
R&D and Qualification
Northern's Battery Materials Laboratory
-
Germany
A
Final Feasibility Study ("FFS")
for the BAM facility will be conducted and is intended to be
completed by June 30, 2026, with debt funding to follow based on the FFS.
Completion of the joint venture is subject to customary conditions, including execution of definitive
agreements, completion of offtake agreements, completion of feasibility studies, regulatory and
permitting approvals in the Kingdom of Saudi Arabia, finalization of offtake agreements, and receipt of
all required board and regulatory approvals. The partners intend to proceed with incorporation of
JVCo
and entry into a definitive shareholders' agreement governing ownership, governance, capital
contributions, and development obligations by Q4 2026.
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "Qualified Person" as defined under
NI 43-101 and has reviewed and approved the content of this news release.
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is the only producer of flake
graphite in North America. Northern's graphite assets include the producing Lac des Iles mine in
Quebec, where the Company is boosting output to meet growing demand from industrial customers and
coming demand from North American battery makers. The Company also owns the large-scale,
advanced stage Bissett Creek graphite project in Ontario and the fully permitted Okanjande graphite
mine in Namibia. All projects have "battery quality" graphite and are located close to infrastructure in
politically stable jurisdictions. The Company's mine-to-battery strategy is spearheaded by its Battery
Materials Group, which has a fully equipped, state-of-the-art laboratory in Frankfurt. Northern is focused
on becoming a world leader in producing natural graphite and upgrading it into high-value products
critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and
graphene, as well as advanced industrial technologies.
About Al Obeikan Group for Investment Company
Al Obeikan Group for Investment Company
(OIG) is a family-run business, founded in 1982 by the
Obeikan family with headquarters in Riyadh. OIG has a strong foothold in manufacturing, packaging,
education, and health care. On top of being the leading provider of fully integrated packaging solutions in
the region, OIG has a growing focus on digital transformation and providing proven models that help
manufacturers and enterprises to achieve operational excellence with productivity-enhancing
applications, and performance improvement end-to-end solutions.
For media inquiries contact
Pav Jordan, VP of Communications
Email:
For additional information
Please visit the Company's website at
https://www.northerngraphite.com/home/
, the Company's profile
on
www.sedarplus.ca
our
Social Channels
listed below or contact the Company at (613) 271-2124.
YouTube
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Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward-looking statements and information are frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this news release include statements
regarding, among others, the Company's plans to enter into a definitive joint venture agreement with
Obeikan, extend the mine life of its LDI mine and development plans for its other projects including
Bissett Creek. All such forward-looking statements are based on assumptions and analyses made by
management based on their experience and perception of historical trends, current conditions and
expected future developments, as well as other factors they believe are appropriate in the
circumstances. However, these statements are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from those projected including, but
not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable
authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in
commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and
contemplated studies to deliver anticipated results or results that would justify and support continued
studies, development or operations and the inability to raise required financing. Readers are
cautioned not to place undue reliance on forward-looking information or statements.
Although the forward-looking statements contained in this news release are based 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
news release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/280297