NextSource Materials: A Rapidly Emerging Vertically Integrated Graphite Play

NextSource Materials Inc. (TSX:NEXT,OTCQB:NSRCF) has rapidly jumped to the highest tier of the new entrants in the graphite space according to a report by MacMurray D. Whale, an analyst at Cormark Securities, a Canadian investment banking and research firm. 

Whale said the recent appointment of Sir Mick Davis to the board following the strategic investment by his Vision Blue Resources, an investment company focused on battery materials, as well as the announcement of the 3-way partnership with major anode materials suppliers to Japanese battery markets which include Tesla’s supply chain are reasons why investors should now consider NextSource from a valuation perspective.

The report further stated that the financing of Phase 1 of Molo, as well as the partnership on anode materials, will lead to a number of important milestones in the next 18 months, including the development of an anode materials processing facility and qualification of its output for tier 1 battery suppliers, a major hurdle to become a supplier to the battery supply chain.

NextSource recently finalized a binding agreement to construct and operate a value-added, battery anode facility (“BAF”) to produce spheronized and purified graphite (“SPG”) required in lithium-ion batteries for electric vehicle (“EV”) and hybrid vehicle (“HEV”) applications. The Partnership is exclusive to NextSource and pairs the Company with two well-established and leading companies that process and supply SPG to leading Japanese anode and battery makers, who in turn supply the Tesla supply chain and other major automotive companies (“OEMs”).

Read the full report here.