NextSource Materials Signs Agreement with Posco International

NextSource Materials has announced a significant step forward in its collaboration with Posco International, a leading South Korean trading company. The two companies have signed a nonbinding memorandum of understanding, which outlines their plans for a strategic partnership. This agreement could potentially involve an equity investment from Posco, as well as a long-term offtake agreement for NextSource's spheronized and purified graphite products.

Before a definitive agreement can be reached, certain technical and economic studies will need to be completed, according to NextSource. However, the memorandum proposes a 10-year deal that would see NextSource supply Posco with 30,000 metric tons per year of its SuperFlake graphite concentrate. Additionally, Posco would receive 10,000 to 15,000 tons annually of spheronized and purified graphite. These materials would be used by Posco's subsidiary, which is responsible for supplying South Korea's major battery cell manufacturers with finished cathode and anode materials for electric vehicle batteries.

This potential collaboration represents a major opportunity for both NextSource Materials and Posco International as they aim to meet the growing demand for graphite in the electric vehicle industry. With this agreement, NextSource could secure a reliable customer and potentially receive investment support from Posco. Stay tuned for further updates on this exciting partnership.