NextSource Materials said on 28 September 2026 that it had signed a binding share subscription agreement with Japanese trading company Hanwa and Japan’s government agency JOGMEC for its Battery Anode Facility (BAF) under development in Abu Dhabi. The two investors will use a jointly owned vehicle to invest US$30 million for a 15% interest in the project company. NextSource said it would retain 85% after the subscription closes. The agreement is binding, but the transfer and ownership structure take effect only upon closing.

The company said the investment will contribute to project funding and first-phase capital expenditure. A separate shareholders’ agreement is expected to set out the partners’ rights and obligations and the framework for financing, development, construction and operation of the plant. NextSource said it expected that agreement to follow shortly after the share subscription agreement, so it should not be treated as already executed. JOGMEC’s role as a Japanese government organisation concerned with metals and energy security gives the investment a supply-chain partnership dimension as well as a financing component.

The Abu Dhabi facility is intended to produce anode material from natural graphite. NextSource gives the first phase a design capacity of about 14,000 tonnes a year, with ramp-up expected to begin in the second half of 2027. The company’s staged expansion plan would later raise capacity to about 30,000 tonnes a year. These are design and planning figures; the plant is not yet in commercial production. NextSource also said its output is intended to be supplied as the sole source to an unnamed major electric-vehicle manufacturer under a binding, multi-year offtake agreement.

After announcing a final investment decision in May 2026, NextSource says it advanced the project through pre-engineering and mobilisation for construction. Its September release listed finalising property agreements and approvals, awarding early-works contracts, progressing environmental and permitting work, beginning procurement of long-lead equipment and hiring essential staff. These are reported progress steps, not evidence that the factory has been built or commissioned. The company said it would use staged funding gates to allocate capital in a disciplined way.

NextSource also said it was in advanced discussions with other strategic investors about a possible additional 35% interest in the project company and was continuing debt-financing talks with potential lenders. Those are not completed investments or committed loans. Further assessment will depend on the transaction closing date, how the proceeds are applied to capital costs, completion of financing, construction milestones and actual output. The verified development is the binding US$30 million project-level investment agreement signed by Hanwa and JOGMEC for the UAE graphite-anode facility.