Canada-based Northern Graphite and Saudi industrial conglomerate Obeikan Investment have formalized a significant partnership, signing a financing agreement to co-develop and operate a substantial battery anode material (BAM) facility in Saudi Arabia. The venture aims to bolster the global supply chain for critical EV components outside of China.
Key Facility Details and Timeline
The proposed BAM facility represents an investment of $200 million and is slated to commence operations with an initial annual production capacity of 25,000 tonnes. Construction is projected to begin in 2026, with first-phase production anticipated in 2028. The facility is designed with scalability in mind, capable of expanding to meet the escalating global demand for graphite anode materials.
Strategic Location in Yanbu
The plant will be strategically situated in Yanbu, a key industrial and logistics hub located on the Red Sea. This prime location offers direct access to major markets across Europe, North America, and the Middle East, enhancing logistical efficiency and market reach.
Joint Venture Structure and Funding
Under the joint venture agreement, Obeikan Investment will hold a 51% stake, with Northern Graphite retaining 49%. Obeikan Investment will spearhead the arrangement of local debt financing necessary for the plant’s construction, development, and commissioning. The remaining capital will be contributed by both partners as equity, in proportion to their ownership stakes, supplemented by commercial bank financing.
Supply Chain Integration and Mine Restart
Northern Graphite and Obeikan are actively engaged in negotiations with battery manufacturers to secure long-term offtake agreements for the facility’s initial 25,000 tonnes per year output. Concurrently, the joint venture will commit to a long-term offtake agreement to purchase up to 50,000 tonnes of graphite concentrate annually from Northern Graphite’s Okanjande project in Namibia. This agreement is expected to accelerate the restart and potential expansion of the Okanjande mine, which has been on care and maintenance since 2018.
CEO’s Outlook on the Partnership
“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,” stated Hugues Jacquemin, Chief Executive Officer of Northern Graphite. The collaboration is poised to strengthen Northern Graphite’s position in the global graphite market and contribute to the development of a more diversified and robust battery materials supply chain.