Northern Graphite Corporation’s Okanjande graphite mine in Namibia is set for a restart following the signing of a joint venture agreement that will secure long-term demand for Namibian graphite in global battery supply chains.
Northern Graphite and Obeikan Investment Group have signed a term sheet to jointly develop a US$200 million battery anode material (BAM) plant in Yanbu Industrial City, in the Saudi Arabia.
As part of the agreement, the joint venture will conclude a long-term offtake arrangement to purchase up to 50,000 tonnes per year of graphite concentrate from Northern’s Okanjande mine in Namibia.
Northern said the agreement materially accelerates the restart and potential expansion of the Okanjande project, which has been on care and maintenance since 2018.
The mine is expected to become the company’s primary growth asset, supplying graphite into a fully integrated, non-Chinese battery materials supply chain serving global electric vehicle and battery manufacturers.
Commenting on the transaction, Northern Graphite Chief Executive Officer Hugues Jacquemin said the partnership would strengthen the company’s market position and accelerate project development in Namibia.
“By partnering with Obeikan in the Kingdom of Saudi Arabia, we are partnering with a well-financed and experienced industrial player, gaining scale, financing strength and access to one of the world’s most strategically important industrial hubs, while accelerating the restart of our Okanjande mine in Namibia and advancing our broader mine-to-market strategy,” Jacquemin said.
A preliminary economic assessment completed in 2023 outlines production of approximately 31,000 tonnes per year over a 10-year mine life at Okanjande.
Northern said it plans to prepare a new technical report to assess higher production levels aligned with the requirements of the Saudi joint venture.
The Yanbu BAM facility is expected to have an initial production capacity of 25,000 tonnes per year, with first production forecast for 2028 and scope for future expansion.
Northern said advanced discussions are already under way with global battery manufacturers for long-term offtake agreements covering the plant’s initial output.
Under the proposed ownership structure, the joint venture company will be 51% owned by Obeikan and 49% by Northern Graphite, with project debt expected to be sourced from Saudi government finance agencies as well as local and international commercial banks.
The project forms part of broader global efforts to diversify graphite supply away from China as demand for lithium-ion batteries continues to rise. Industry forecasts indicate that graphite is expected to retain more than 90% market share in battery anodes through 2040.
