Okanjande Graphite Project is at the centre of Northern Graphite’s newly announced US$200 million battery anode material investment agreement signed with Saudi Arabia’s Al Obeikan Group for Investment Company.
The term sheet, signed on 14 January 2026, provides for the development of a battery anode material plant in Yanbu Industrial City through a joint venture company that will be 51% owned by Al Obeikan and 49% by Northern Graphite.
Construction of the facility is expected to begin in 2026, with first-phase production targeted for 2028.
The Yanbu plant is planned to have an initial production capacity of 25,000 tonnes per year of battery anode material, with the ability to scale production as global demand grows.
Northern said negotiations with global battery manufacturers on long-term offtake covering the initial 25,000 tonnes per year of battery anode material output are at an advanced stage.
The agreement secures a long-term downstream outlet for graphite produced at the Okanjande Project, located near Otjiwarongo.
The joint venture intends to conclude a long-term offtake agreement to purchase up to 50,000 tonnes per year of graphite concentrate from Okanjande, which has been on care and maintenance since 2018.
Northern said the Saudi partnership materially accelerates the restart and potential expansion of the mine.
“This joint venture represents a defining step in Northern’s evolution from a mining company into a fully integrated, global battery anode material producer.
“By partnering with Obeikan in the Kingdom of Saudi Arabia, we are gaining scale, financing strength and access to a strategically important industrial hub, while accelerating the restart of our Okanjande mine in Namibia,” Northern Graphite chief executive Hugues Jacquemin said.
Under the agreement, Northern will also receive a royalty on net sales of battery anode materials, in addition to its 49% equity interest in the joint venture, reflecting its role in developing processing technologies, validating products and establishing commercial and customer qualification pipelines.
A preliminary economic assessment for Okanjande, prepared in accordance with NI 43-101 and filed in August 2023, outlines production of approximately 31,000 tonnes per year over a 10-year mine life.
Northern has indicated it will prepare a new technical report to assess the economics of higher production rates aligned with the joint venture’s requirements.
Project funding will be arranged at the joint venture level, with Al Obeikan leading the organisation of debt financing from Saudi government finance agencies, local banks and international commercial lenders.
The joint venture partners will provide equity funding in proportion to their ownership interests.
“Our partnership with Northern is fully aligned with the Kingdom’s ambition to lead in advanced materials and clean energy supply chains.
“Together, we intend to establish a world-class battery anode material production hub in Yanbu that serves global battery manufacturers while strengthening the resilience of international supply chains,” Al Obeikan Group chief executive Abdallah Obeikan said.
The integrated supply chain will see graphite mined and concentrated at Okanjande in Namibia, processed into battery anode material in Saudi Arabia through purification, spheroidisation and coating, and supported by research and product qualification at Northern’s battery materials laboratory in Germany.
Northern said the project is aligned with Saudi Arabia’s Vision 2030 strategy and responds to rising global demand for secure, non-Chinese graphite anode supply.
Completion of the joint venture remains subject to definitive agreements, feasibility studies, regulatory approvals and finalisation of offtake contracts, with a final feasibility study for the battery anode material plant targeted for completion by mid-2026.
