TORONTO, ON — January 12, 2026 — Leads & Copy — NextSource Materials Inc. has finalized multiple term sheets with strategic investors to fund Phase 1 of its proposed Battery Anode Facility (BAF) in the Industrial City of Abu Dhabi in the UAE.
According to the company, these term sheets represent substantial progress in the company’s strategic financing process and further reinforce the company’s path toward the final investment decision (FID).
The company has finalized term sheets with several strategic investors, including local sovereign‑linked entities and a Japanese strategic consortium, including a diversified industrial trading group with experience across the global battery materials and infrastructure sectors.
The announcement follows the successful conclusion of the first stage of due diligence and the investor site visit held on November 25, 2025, to the industrial building and site secured for the location of the company’s proposed BAF in the Industrial City of Abu Dhabi.
The term sheets propose an equity investment at the project level in the BAF project under which new strategic partners would potentially acquire an interest of up to 50% in the UAE BAF and subsequently fund their pro rata share of Phase 1 capital costs. According to NextSource Materials Inc., this approach aligns with the objective to minimize dilution of the company while potentially partnering with investors that bring strategic and regional value to the BAF project and across the battery supply chain.
The executed term sheets are non-binding and subject to customary conditions. The company is advancing next steps with these parties, alongside ongoing technical, commercial, and legal due diligence, with a view toward potentially finalizing a preferred funding structure and executing definitive agreements in the coming months.
Hanré Rossouw, President and CEO of NextSource, said the level and quality of funding interest at the project level is a validation of the company’s UAE BAF strategy. Rossouw added that these strategic investors recognize the importance of establishing secure, scalable, and geopolitically aligned anode supply chains outside of China and that this process marks a significant first step toward funding the first commercial-scale BAF.
The company is advancing parallel workstreams to reach FID by the end of Q1 2026, supported by strong progress in the front-end engineering and design with its engineering partner firm, Stantec. Following a prospective successful FID and funding, the company will proceed with full equipment procurement, installation, commissioning, and ramp‑up in accordance with its phased development plan.
NextSource Materials Inc. is a battery materials company based in Toronto, Canada, that intends to become a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.
The company’s Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun production through Phase 1 mine operations.
NextSource Materials is listed on the Toronto Stock Exchange under the symbol “NEXT” and on the OTCQB under the symbol “NSRCF”.
Brent Nykoliation, Executive Vice President, can be contacted at brent@nextsourcematerials.com or +1.416.364.4911.
Source: NextSource Materials Inc.
