NextSource Materials Rethinks Graphite Supply Chain as Stock Slips Sharply
Published on 06/24/2026 at 18:55 | Redaktion boerse-global.de
NextSource Materials is reinventing itself from a traditional mining operator into a vertically integrated battery-component supplier, but the market appears to be taking a wait-and-see approach for now. Shares tumbled 8.20 percent on Wednesday, hitting €0.22 — well off the 52-week high of €0.40, though still up more than 50 percent over the past twelve months.
The centrepiece of the strategic pivot is a graphite processing plant in Abu Dhabi, where NextSource plans to turn raw material into high-grade anode product for electric-vehicle batteries. A final investment decision for the first phase was taken back in May 2026, and the company has already locked in a multi-year offtake agreement with Mitsubishi Chemical Corporation to supply the North American market.
Raw feed will come chiefly from NextSource’s own Molo mine in Madagascar, which is already producing graphite under Phase 1. A new study is now underway to map out a much larger Phase 2 expansion that would give the company a truly global footprint. To reduce dependence on a single source, management has also struck a deal to buy additional natural graphite from Syrah Resources.
Should investors sell immediately? Or is it worth buying NextSource Materials?
On the financing side, the company is in talks with a Japanese consortium that includes trading house Hanwa and state-backed JOGMEC. Their participation would underwrite construction of the UAE facility, but the group is still reviewing the investment. Once that commitment is confirmed, the path to building the Abu Dhabi plant clears — until then, funding remains the biggest risk to the timeline.
Graphite accounts for more than 95 percent of the anode material in lithium-ion batteries, and NextSource’s push to create a non-Asian supply chain resonates with Western automakers hungry for diversified sources. The German Federal Institute for Geosciences and Natural Resources has already flagged the Molo mine as a key building block for Europe’s own supply lines, and a delivery contract with Thyssenkrupp Materials Trading is already in place.
For now, though, the stock price reflects the uncertainty. At €0.22, NextSource trades roughly in line with its 52-week low, suggesting that investors are waiting for the Japanese consortium to formalise its backing before pricing in the full upside of the Abu Dhabi venture.
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