HIGHLIGHTS
- Ten (10) year binding Offtake Agreement signed with a prominent
Japanese Graphite Trading Company (“Japanese Partner”) to purchase
20,000 tonnes per annum of Molo SuperFlake® graphite for use in
battery anode applications for electrical vehicles (“EV”).
- The Japanese Partner is a major supplier of flake graphite to
Japan’s largest battery processor and manufacturer of graphite
anode material in lithium ion batteries (“LiB”) for electric
vehicle applications. This battery anode manufacturer currently has
over 50 percent market share of premium-grade graphite anode
production in Japan for electric vehicle battery applications. Its
EV automotive customers are global.
- Currently, the majority of the Japanese Partner’s flake
graphite purchases are used to supply Japanese battery anode
producers for EV applications.
- The major Japanese electric vehicle anode producer has verified
that NextSource’s SuperFlake® graphite concentrate achieved
superior test results compared to the current graphite material it
sources for LiB in EV automotive applications.
- The Offtake Agreement represents more than the initial Phase 1
mine production plan of 17,000 tonnes per year. As such, NextSource
will begin internal discussions regarding moving straight to Phase
2 expansion tonnages.
- Further significant business opportunities remain between
NextSource and its Japanese Partner. Both parties have agreed to
commence discussions regarding potential supply chain
collaboration, including partnering on value-added, downstream
products using SuperFlake® graphite concentrate.
- Further opportunities remain available in the Asian and
European markets, with NextSource having achieved very advanced
product qualification with other potential partners toward supply
agreements.
OFFTAKE AGREEMENT
NextSource Materials Inc. (TSX:NEXT)
(OTCQB:NSRCF) (“NextSource” or the “Company”) is pleased to
announce the signature of a binding Offtake Agreement for the
supply of NextSource’s SuperFlake® graphite concentrate with a
prominent Japanese Trading Company that is a primary supplier of
flake graphite to a major Japanese electric vehicle anode producer.
To protect certain confidential aspects of the Offtake Agreement,
the Japanese Trading Company and the Japanese electric vehicle
anode producer have requested not to be identified at this
time.
KEY TERMS
The Offtake Agreement is for a period of ten
(10) years and activates on the commencement of commercial
production at the Molo project, with an automatic renewal for an
additional five (5) years. The Japanese Partner will have the
exclusive right to import and sell SuperFlake® graphite concentrate
in Japan. Provided that commercial production commences within 3
years, following the ramp up period, the Japanese Partner will
purchase 20,000 tonnes of SuperFlake® graphite per annum. Product
prices will be negotiated on a per order basis between the parties
and will be based on the floating market prices (FOB basis)
prevailing in the region.
INTEREST IN ADDITIONAL
TONNAGE
The Company has been advised that the primary
customer of the Japanese Partner is a major global battery anode
material manufacturer in Japan who has qualified Molo SuperFlake®
graphite for battery requirements with its automotive customers.
Additionally, the Company has been advised that product testing by
this battery anode material producer has verified that NextSource’s
SuperFlake® graphite concentrate achieved superior test results
compared to the current graphite anode material it sources for use
in LiB for EV applications.
The Japanese partner has indicated that all
20,000 tonnes per annum of NextSource’s SuperFlake® graphite
concentrate will be used specifically for use in EV applications,
and that the Japanese partner’s intention is to purchase additional
tonnage in various size fractions for specific high-end application
markets, such as expanded graphite (graphite foils) for the
consumer electronics and fire retardant industries.
President and CEO, Craig Scherba P. Geo., said
“This offtake partnership is a significant achievement for
NextSource and is the culmination of more than four years of
extensive product testing of our SuperFlake® graphite with major
Japanese material manufacturers. This offtake agreement allows
NextSource to gain an immediate foothold into the high-growth
markets for electric vehicles, as well as the burgeoning energy
storage market that will be reliant on graphite anode material. Our
partnership with such an established trading partner positions
NextSource to be a significant and dominant future supplier of
high-quality flake graphite to major battery anode and graphite
foil customers globally.”
FURTHER PARTNERSHIP & VALUE-ADD
OPPORTUNITIES
Separate from the Offtake Agreement, NextSource
and the Japanese Partner have agreed to immediately commence
discussions regarding additional supply chain cooperation.
Specifically, the parties have initiated discussions regarding a
potential partnership for the production of value-add, downstream
products using SuperFlake® graphite concentrate. This would
include, but not be limited to, the processing of NextSource’s
SuperFlake® graphite concentrate into spherical and purified
graphite (SPG), both uncoated and coated, and expanded graphite for
use in graphite foils in a separate and dedicated facility in a
location that would best optimize the Japanese Partner’s customer
base. NextSource and the Japanese Partner have begun organizing
logistics towards meetings this November in Asia.
NextSource has made significant progress
qualifying its SuperFlake® graphite concentrate with other major
graphite end-users around the world, who have undertaken extensive
product testing as part of their due diligence process for offtake
agreements. The Company looks forward to updating the market on the
progress of developments with other potential customers as soon as
details are finalized.
STRONG DEMAND FOR GRAPHITE IN EV
APPLICATIONS
Benchmark Minerals Intelligence has reported
that natural flake graphite prices for all sizes fractions at 95
percent carbon purity and greater are nearing all-time highs.
According to Roskill Information Services, a leading UK-based
market and metals research firm, demand for natural graphite in LiB
is expected to grow at 28% per year until 2027. Current global
graphite anode consumption is estimated to be between 90,000 to
110,000 tonnes per year and predicted to reach 800,000 tonnes per
year by 2027.
The spheronizing process when producing graphite
anode material is a very inefficient one, with average yields of
between 30 percent and 40 percent. Therefore, it takes
approximately three tonnes of natural flake graphite to produce one
tonne of graphite anode material. Today, the largest consumption
market for flake graphite is for its traditional use in
refractories, a crucial component in the steel making process.
However, the flake graphite market is expected to double by 2025
based on the demand for LiB in EVs alone, which represents a 40
percent to 45 percent consumption share of flake graphite
globally.
ABOUT MOLO SUPERFLAKE®
GRAPHITE
As detailed in the Company’s June 2017
Feasibility Study, NextSource’s SuperFlake® graphite concentrate
can achieve 98% carbon purity with standard mineral processing
(flotation), has excellent thermal expansion, can be easily
upgraded to 99.97% purity (battery grade) and contains no
deleterious substances. The SuperFlake® graphite concentrate’s
flake size distribution is well above the global average, with 46.4
percent being classified as the premium-priced +80 (large), +65
(extra large) and +48 (jumbo) mesh flake size. Specifically 23.6
percent of SuperFlake® graphite concentrate is +48 mesh and greater
in size.
As previously reported, significant independent
testing of the pilot plant material already completed by various
key global offtakers and graphite end-users has confirmed that Molo
SuperFlake® graphite concentrate meets or exceeds quality
requirements for all major end markets for natural flake graphite -
anode material for lithium-ion batteries, refractories and
specialty graphite foils. Molo SuperFlake® has also been verified
for graphene ink applications.
ABOUT NEXTSOURCE MATERIALS
INC.
NextSource Materials Inc. is a mine development
company based in Toronto, Canada, that is developing its 100%-owned
Molo Graphite Project in southern Madagascar. The Molo Graphite
Project is a feasibility-stage, shovel-ready project that ranks as
one of the largest-known and highest quality flake graphite
deposits in the world and the only project with SuperFlake®
graphite.
For further information contact:
+1.416.364.4911
Brent Nykoliation, SVP, Corporate Development at
brent@nextsourcematerials.com orCraig Scherba, President and CEO at
craig@nextsourcematerials.com
Safe Harbour: This press release contains
statements that may constitute “forward-looking statements” within
the meaning of applicable Canadian securities legislation. Readers
are cautioned not to place undue reliance on such forward-looking
statements. Forward-looking statements include, but are not limited
to, the terms of the Offtake Agreement, results of the updated 2017
Feasibility Study, any and all product test results and product
analysis, any statements relating to the further partnership and
value added opportunities, production at the Molo project, delivery
of the material and pricing terms. These are based on current
expectations, estimates and assumptions, and although the Company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, actual results or
developments may vary and, in some instances, 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 publicly or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.
NextSource Materials (TSX:NEXT)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
NextSource Materials (TSX:NEXT)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
