Northern Graphite, Al Obeikan to Build US$200 Million Battery Anode Plant in Saudi Arabia

An update from Northern Graphite ( (TSE:NGC) ) is now available.

Northern Graphite Corporation and Saudi Arabia’s Al Obeikan Group have signed a term sheet to create a joint venture to build a US$200 million battery anode material plant in Yanbu Industrial City, with Obeikan owning 51% and Northern 49%. The facility, slated to begin construction in 2026 and targeted to start first-phase production of 25,000 tonnes per year in 2028, is designed to be scalable and will be funded primarily through Saudi government agencies and local and global commercial banks, with equity contributions from the partners. The joint venture is in advanced talks with global battery manufacturers over long-term offtake agreements for its initial output and will also secure up to 50,000 tonnes per year of graphite concentrate from Northern’s Okanjande mine under a long-term supply deal that includes a royalty on BAM sales to Northern. By anchoring production in Saudi Arabia’s strategically located Yanbu hub and integrating supply from Namibia, the project supports the Kingdom’s Vision 2030 objectives and positions Northern as a fully integrated, geopolitically diversified BAM producer offering non-Chinese, secure and traceable graphite anode supply to global OEMs, while making Okanjande its primary growth engine.

The most recent analyst rating on (TSE:NGC) stock is a Sell with a C$0.21 price target. To see the full list of analyst forecasts on Northern Graphite stock, see the TSE:NGC Stock Forecast page.

Spark’s Take on TSE:NGC Stock

According to Spark, TipRanks’ AI Analyst, TSE:NGC is a Neutral.

The score is primarily constrained by weak financial performance (shrinking revenue, heavy losses, weak cash flow, and negative equity). Technicals are comparatively stronger with an uptrend, but the overbought RSI tempers momentum. Valuation is also limited by negative earnings and the absence of a dividend yield.

To see Spark’s full report on TSE:NGC stock, click here.

More about Northern Graphite

Northern Graphite Corporation is a graphite-focused mining and materials company that is expanding downstream into battery anode materials, aiming to become a fully integrated mine-to-market supplier to the global lithium-ion battery industry. Its strategy centers on developing non-Chinese, traceable graphite supply chains, including leveraging its Okanjande graphite mine in Namibia to feed advanced material processing facilities serving electric-vehicle and energy-storage markets.

Average Trading Volume: 343,168

Technical Sentiment Signal: Buy

Current Market Cap: C$36.1M

For a thorough assessment of NGC stock, go to TipRanks’ Stock Analysis page.