Canada-listed NextSource Materials remains committed to ramping up and expanding its Molo graphite mine in Madagascar, despite market headwinds.
The company, led by CEO Hanré Rossouw, is aligning production with demand to maintain economic viability.
Construction of the Molo mine was completed in early 2023, with commissioning beginning in March. However, commercial production has yet to be declared.
Since producing its first graphite concentrate in June 2023, NextSource has implemented several process enhancements, including replacing the final product dryer and finished-product screens based on a third-party assessment.
In October 2024, the company successfully exported its first full-container shipments of high-quality coarse flake graphite concentrate from Madagascar’s Port of Tulear to Germany and the US.
These shipments, delivered under existing sales agreements, serve industries such as refractory materials, graphite foils for consumer electronics, and fire-retardant applications. Verification is ongoing to ensure compliance with commercial sales specifications.
Despite delays in reaching commercial production, plant optimisation remains a priority to sustain output while managing costs.
“We will continue balancing Molo’s ramp-up with market development and key sales channels, despite challenging conditions. Our focus is on quality and volume while gathering valuable insights for future expansion,” states NextSource.
The company acknowledges that natural graphite prices declined in 2024, primarily due to weaker-than-expected electric vehicle (EV) demand and increased supply from China. However, NextSource remains optimistic about long-term demand.
Industry forecasts predict significant graphite demand growth between 2025 and 2030, driven by the expansion of lithium-ion battery production.
Citing Benchmark Minerals Intelligence, NextSource warns that 97 new graphite mines will be needed by 2035, with potential supply shortages lasting up to 20 years unless sources diversify beyond China.
Graphite is a critical material, making up more than 95% of lithium-ion battery anodes.
Key Milestones and Expansion Plans
For the 2025/26 financial year, NextSource aims to:
- Ramp up Molo’s production capacity to 15,000 – 17,000 t/y of SuperFlake graphite concentrate.
- Officially declare commercial production.
- Expand its customer base and sales channels.
- Provide formal guidance on output, revenue, and operating costs.
Meanwhile, NextSource is advancing plans for a battery anode facility (BAF) in Mauritius, with an environmental impact assessment in progress.
The facility is expected to produce 3,600 t/y of spherical purified graphite (SPG) and/or coated SPG, with key equipment already received.
Additionally, the company is developing BAFs in the Middle East, including a proposed facility in Saudi Arabia. A feasibility study confirmed an initial production capacity of 20,000 t/y, with staged expansion to 100,000 t/y.
Despite market challenges, NextSource remains focused on scaling production, diversifying sales, and establishing downstream processing capacity to secure its role in the evolving global graphite market.
