A new joint venture between Northern Graphite and Al Obeikan Group for Investment Company will see the development of a US$200 million battery anode material (BAM) plant in Yanbu Industrial City, Saudi Arabia.
The partners have signed a term sheet to establish the facility through a new JV company, which will be owned 51% by Obeikan and 49% by Northern.
The project’s first phase targets 25,000 tonnes per year of BAM by 2028, with scope for significant expansion to meet rising global demand for non‑Chinese graphite anode supply. Debt financing is expected to come from Saudi government agencies and commercial banks, with equity contributions from both partners.
Yanbu’s position on the Red Sea provides direct access to European, North American and Middle Eastern markets. Alongside this, the JV plans a long‑term agreement to purchase up to 50,000 tonnes per year of graphite concentrate from Northern’s Okanjande mine in Namibia, supporting the restart and potential expansion of the operation.
Northern CEO Hugues Jacquemin said, “This joint venture represents a defining step in Northern’s evolution from a mining company into a fully integrated, global battery anode material producer.” Abdallah Obeikan added that the partnership aligns with the Kingdom’s ambitions for advanced materials and clean‑energy supply chains.
The project forms part of a fully integrated flow from mining in Namibia to BAM production in Saudi Arabia and R&D in Germany. A final feasibility study is due by June 2026. Completion of the JV remains subject to definitive agreements, permitting, offtake contracts and regulatory approvals.
