ع
Al Obeikan Group will own 51 percent of the joint venture while Northern Graphite will hold 49 percent under the preliminary agreement announced by the Canadian miner. The facility is expected to cost approximately $200 million with debt financing to be secured from Saudi government finance agencies along with global commercial banks. Construction is scheduled to commence during 2026 and initial production is anticipated to begin in 2028, Northern Graphite said. The company further disclosed it is engaged in advanced discussions with international battery manufacturers regarding long-term offtake contracts for the plant’s first phase output.
The project seeks to capitalize on rising global requirements for graphite used in lithium-ion battery anodes as electric vehicle adoption accelerates. According to a MarketsandMarkets study the lithium-ion battery anode market is set to expand from 19.06 billion U.S. dollars in 2025 to 81.24 billion dollars by 2030 with a compound annual growth rate of 33.6 percent. Northern Graphite indicated the Saudi plant would feature scalability to satisfy increasing demand for anode materials produced outside China, the leading global supplier.
Saudi Arabia continues to pursue economic diversification away from hydrocarbons through its Vision 2030 framework. A Benchmark Minerals review noted that the kingdom has been forging partnerships to develop battery materials processing capabilities as part of broader supply chain ambitions. The joint venture fits within these efforts to attract investment and establish new industrial sectors.
The arrangement also includes provisions for the joint venture to acquire up to 50,000 tonnes per year of graphite concentrate from Northern Graphite’s Namibian holdings. This linkage will help expedite the restart and expansion of the Okanjande mine, which the firm has advanced by relocating its processing plant with operations now eyed for late 2027, according to Northern Graphite. The mine possesses potential annual output of 31,000 tonnes that can be increased over time.
News of the partnership drove a roughly 30 percent increase in Northern Graphite shares to C$0.32 during morning trading on the announcement date, Reuters market data indicated. The development underscores the Canadian company’s strategy to integrate mining assets with downstream processing in strategic locations. Additional context from the sector highlights how such investments contribute to securing resilient supply chains for critical battery inputs.
