NextSource Materials Inc. (TSX: NEXT)(OTCQB: NSRCF) has executed a binding Share Subscription Agreement with Hanwa Co., Ltd. and the Japan Organization for Metals and Energy Security (JOGMEC) for a $30 million investment in its Battery Anode Facility (BAF) in Abu Dhabi, UAE, according to a press release dated September 28, 2026.

Under the agreement, Hanwa and JOGMEC will acquire a combined 15% equity interest in the UAE BAF through a jointly owned investment vehicle. NextSource will retain an 85% equity interest. The $30 million includes the investors' contribution to capital expenditures for the first phase of the project.

The parties expect to finalize a Shareholders' Agreement shortly after the Share Subscription Agreement, which will govern funding, development, construction and operation of the facility. The ownership structure will take effect upon closing of the subscription transaction.

Hanré Rossouw, President and CEO of NextSource, said the finalization of the investment "marks a significant milestone" and that the partnership "brings deep expertise in global battery materials, supply chains and critical mineral security."

The project is currently in a pre-EPC mobilization phase, which includes finalizing property agreements and approvals, awarding early-works contracts, progressing environmental and permitting activities, initiating long-lead procurement for key equipment, and hiring project personnel. NextSource announced a Final Investment Decision on May 12, 2026.

Proceeds from the investment will be used to fund the BAF project. The company said it is in advanced discussions with additional strategic investors regarding a further 35% interest in the UAE BAF project company, and is also in discussions with potential debt providers following multiple expressions of interest for loan financing.

Hanwa Co., Ltd. is listed on the Tokyo Stock Exchange and operates in steel, non-ferrous metals, food, petroleum and chemicals. JOGMEC is a Japanese government agency under the Ministry of Economy, Trade and Industry focused on securing stable supplies of energy and mineral resources for Japan.