NextSource Materials Inc. announced its global anode expansion strategy and the economic results from the study relating to its first battery anode facility (BAF) to be located in Mauritius. The highlights are as follows: Plans to construct, in stages, multiple BAFs globally in key jurisdictions that would be capable of producing commercial scale graphite anode material for lithium-ion batteries used in electric vehicle (EV) applications. The Company's planned series of BAFs will leverage exclusive access to well-established proprietary anode processing technology currently supplying coated, spherical and purified graphite (CSPG) to major EV automotive companies (OEMs).

First BAF (BAF1) to be located in Mauritus, in close proximity to the Company's Molo Graphite Mine in Madagascar and on a strategic shipping route that supplies Asian markets. Lease for BAF1 signed on existing industrial premises, accelerating the development timeframe to first production and enabling supply of CSPG for qualification with OEM customers. BAF1 initial production (Line 1) of 3,600 tpa of CSPG to be advanced on an accelerated timeframe, targeting production in Second Quarter 2024.

Post-tax NPV8% of USD 106.9 million, IRR of 42.7%, and payback within 2.2 years. Capital costs of USD 23.5 million and working capital of USD 4.9 million. Annual forecasted revenues of USD 33.7 million and EBITDA of USD 13.2 million.

BAF1 facility capable of housing 3 additional production lines of 3,600 tpa each, resulting in total production capacity (lines 1-4) of 14,400 tpa of CSPG. Post-tax NPV 8% of USD 4.7 million and IRR of 45.8%, and payback within 3.2 years. Incremental capital cost of USD 74 million, potentially financeable from Line1 cash flows.

Global Anode Facility Expansion Strategy. The Company is planning a staged buildout of a series of BAFs in key geographic locations, each designed with modular production capacities that can expand in lockstep with OEM demand from key markets in Asia, North America.