Canadian graphite company Northern Graphite has partnered with the Saudi Arabian family-owned Al Obeikan Group to invest $200 million in building a battery anode material plant at the Yanbu Port on Saudi Arabia's Red Sea coast. This graphite battery materials project is a key initiative for Saudi Arabia's push towards energy transition and industrial diversification. It is expected to commence operations in 2028 with an annual capacity of 25,000 tons, sourcing raw materials from its mine in Namibia.

The project is being advanced through a joint venture, with the Saudi side holding a 51% stake and leading local financing. It is expected to receive 50%-75% funding support from the Saudi Industrial Development Fund. The plant is regarded as a strategic project under Saudi Arabia's "Vision 2030," aiming to build an integrated supply chain from African mines to Middle Eastern processing, thereby reducing dependence on Chinese graphite materials.

This move marks Northern Graphite's transformation from a mining company to an integrated battery materials producer. Its Saudi project will take priority over its originally planned projects in Canada and France. The project aligns with Saudi Arabia's goal of developing a clean energy supply chain. It will supply graphite battery materials to markets in the Middle East, Europe, and North America, contributing to the diversification of the global graphite supply chain.