Ottawa, Ontario and Riyadh, Kingdom of Saudi Arabia — January 14, 2026 — Leads & Copy — Northern Graphite Corporation and Al Obeikan Group for Investment Company have signed a term sheet to jointly develop and operate a Battery Anode Material (BAM) facility in Yanbu Industrial City, Kingdom of Saudi Arabia.
The joint venture company (JVCo) will be 51% owned by Obeikan and 49% by Northern. Project debt financing will be sourced from Saudi government finance agencies, local and global commercial banks. Phase I BAM production capacity of 25,000 tonnes per year is forecast for 2028, with scalable expansion planned to meet growing global demand. Discussions are underway with global battery manufacturers regarding long-term offtake agreements for the initial production.
Northern and JVCo will conclude a long-term offtake agreement for the purchase of up to 50,000 tonnes per year of graphite concentrate from Northern’s Okanjande mine in Namibia. The project is aligned with Saudi Arabia’s Vision 2030 and aims to accelerate the development of secure, non-Chinese graphite anode supply chains.
The term sheet, signed January 14, outlines the development of an approximately US$200 million BAM facility with an initial production capacity of 25,000 tonnes per year scalable over time to meet rapidly growing global demand for graphite anode materials sourced outside of China. The facility will be located in Yanbu, a strategically positioned industrial and logistics hub on the Red Sea with direct access to European, North American, and Middle Eastern markets.
Construction is expected to start in 2026, with first-phase production forecast to begin in 2028. The BAM facility will be funded at the JVCo level, with Obeikan leading the organization of local debt funding required to finance construction, development and commissioning of the Yanbu plant. The remaining funding is to be provided as equity by the JV partners in proportion to their ownership interests and jointly through commercial banks.
Northern will receive a royalty on net sales of Battery Anode Materials in addition to its direct ownership interest in JVCo.
Hugues Jacquemin, Chief Executive Officer of Northern Graphite, stated that the joint venture represents a defining step in Northern’s evolution from a mining company into a fully integrated, global battery anode material producer.
Abdallah Obeikan, Chief Executive Officer of Al Obeikan Group for Investment Company, said that the partnership with Northern is fully aligned with the Kingdom’s ambition to lead in advanced materials and clean energy supply chains.
The Yanbu BAM plant will form part of a fully integrated, traceable, multi-jurisdiction supply chain for high-performance anode material to global battery and electric vehicle manufacturers. The project is fully aligned with Saudi Arabia’s Vision 2030, which prioritizes advanced manufacturing, energy transition technologies, and downstream value creation.
Mr. Jacquemin noted that the Kingdom of Saudi Arabia is an attractive location for the BAM plant due to its low energy and labor costs, close proximity to Namibia, strong government support, favorable financing conditions, and trade advantages that include low tariffs into the U.S. and efficient access to European markets.
According to SNE Research, lithium-ion battery cell manufacturing capacity is expected to reach 4,527 GWh by 2035 (9% CAGR), with graphite retaining over 91% anode share through 2040. Evolving policies are splitting the global graphite market as tariffs and de-risking measures drive demand for non-Chinese anode materials.
The joint venture materially accelerates the restart and potential expansion of Northern’s Okanjande graphite mine in Namibia. The PEA contemplates 31,000 tpy of production over a ten year mine life. However, the project contains a substantial measured and indicated resource and the Company intends to prepare a new technical report to evaluate the economics of producing at a higher rate based on the requirements of the JVCo.
The project will operate as part of a globally integrated mining and processing chain.
A Final Feasibility Study for the BAM facility will be conducted and is intended to be completed by June 30, 2026, with debt funding to follow based on the FFS.
Completion of the joint venture is subject to customary conditions, including execution of definitive agreements, completion of offtake agreements, completion of feasibility studies, regulatory and permitting approvals in the Kingdom of Saudi Arabia, finalization of offtake agreements, and receipt of all required board and regulatory approvals. The partners intend to proceed with incorporation of JVCo and entry into a definitive shareholders’ agreement governing ownership, governance, capital contributions, and development obligations by Q4 2026.
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a “Qualified Person” as defined under NI 43-101 and has reviewed and approved the content of this news release.
Pav Jordan, VP of Communications
Email: pjordan@northerngraphite.com
Source: Northern Graphite Corporation
