Northern Graphite (TSXV: NGC) has partnered with Saudi Arabia’s Al Obeikan Group to construct a $200 million battery material plant in Yanbu, set to begin production in 2028. The plant will have an initial capacity of 25,000 tonnes per year, sourcing graphite from Northern’s Okanjande project in Namibia. This venture signifies a shift for Northern as it transitions from mining to producing battery anode materials.
Construction is anticipated to start in the second half of 2023, following a final feasibility study. Obeikan will hold a 51% stake in the joint venture, while Northern will retain 49%. The Saudi government is expected to fund 50-75% of the project through the Saudi Industrial Development Fund. Negotiations are underway with global battery manufacturers for a long-term off-take agreement to purchase 25,000 tonnes per year.
Shares of Northern Graphite surged 22% to C$0.31 in Toronto following the announcement, elevating the company’s market value to approximately C$80 million. The investment aligns with Saudi Arabia’s Vision 2030 plan to diversify its economy and enhance its position in advanced manufacturing and clean energy technologies.
