NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) said on Tuesday it has approved a final investment decision on Phase 1 of its Battery Anode Facility in Abu Dhabi, advancing its push into vertically integrated anode materials manufacturing.
The decision follows the completion of front-end engineering design work, which the company said confirmed the economics and project configuration outlined in an October 2025 feasibility study
NextSource said the FEED results provided technical validation of the project’s design, capital profile and operating parameters. The company noted that conflict in the Middle East had delayed some work streams, though proceeds from a recent C$25 million financing were deployed to complete the FEED study, advance a feasibility study on its Molo mine expansion in Madagascar, and progress project financing efforts. Under the FID, NextSource is authorized to enter a pre-EPC mobilization phase covering finalization of property agreements, early works contracts, environmental and permitting activities, and procurement of long-lead equipment.
The phase will also allow for equipment shipments from China and Mauritius and the hiring of project personnel. The company said the FID is structured with conditions precedent and staged funding gates to manage financial exposure until external funding commitments are secured. The investment decision is supported by a proposed strategic investment from a Japanese consortium comprising trading house Hanwa Co and the Japan Organization for Metals and Energy Security, a Japanese government agency known as JOGMEC.