The Canadian mining company aims to develop an integrated value chain from the Molo graphite mine in Madagascar to its potential processing plants in Mauritius and Saudi Arabia. A necessary component in OEM battery anodes, as well as in refractory materials used in metallurgy, NextSource Materials aims to transform its raw, concentrated graphite (SuperFlake) into purified graphite (SPG) for use in industry, particularly the automotive sector. By appointing Tilo Hauke Vice President, Downstream Operations, NextSource Materials is counting on his expertise and network to oversee the implementation of its plants and secure outlets for its OEM products in order to ensure the financing of its plants.
Tilo Hauke will bring his two decades of experience with SGL Carbon, headed by Torsten Derr, to the Canadian company. Based in Wiesbaden, Germany, this company sells graphite-based components to the chemical, automotive, aerospace and energy industries, and has production sites in America, Asia and Europe.
Tilo Hauke also worked as Executive Vice President of Supply Chain Management at FREYR Battery, headed by Tom Jensen, a developer of lithium-ion battery cells based in the USA and Norway. This company, financed by a loan from the US Department of Energy (DOE), is developing a battery plant project in Georgia, USA. A potential outlet for NextSource Materials' battery anode products? For the moment, while the mine has already been dug, the processing plant has yet to be built.
From mine to plant
Its graphite mine has already begun production of SuperFlake® graphite concentrate. With 17,000 tonnes per year, this first phase is partly financed by Vision Blue, the company of Mick Davis, former CEO of Xstrata plc (acquired by Glencore in 2013), for USD 16.9 million.
In a second phase, financed by the World Bank through the International Finance Corporation for 91 million USD, production could reach 150,000 tonnes per year, or 10% of world production. Some of this graphite will be sold to thyssenkrupp Materials Trading GmbH, a German distributor headed by Wolfgang Schnittker.
Another part would be destined for its processing plant in Mauritius. This plant, estimated to cost around 107 million USD, is still in the financing phase. Another possibility recently considered by NextSource Materials could be Saudi Arabia, which, in support of its Vision 2030 energy transformation plan, could host a processing plant costing USD 280 million.
The Canadian company headed by Craig Sherba will therefore have to convince public and private creditors of the viability of its plant projects, which will now be supervised by Tilo Hauke. This could involve securing contracts with graphite manufacturers. With China controlling 80% of the world's production of this strategic product for the technology industry, NextSource Materials could prove a welcome alternative for Western countries, including the USA.