Northern Graphite $200M Saudi anode plant: capacity, offtake and capex lens for engineers
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Northern Graphite and Saudi conglomerate Al Obeikan Group will build a $200 million battery anode material plant at Yanbu on the Red Sea, with initial capacity of 25,000 tonnes per year supplied by concentrate from the restarted Okanjande graphite mine in Namibia, targeted for 2028. The joint venture, 51% owned by Obeikan and eligible for 50–75% project financing from the Saudi Industrial Development Fund, will also commit to buying up to 50,000 tonnes per year of Okanjande concentrate. Northern is in advanced talks on a 25,000-tonne-per-year offtake with global battery makers, while its Canadian and French anode projects are deferred.
Technical Brief
- JV ownership is split 51% Al Obeikan and 49% Northern Graphite, with Obeikan leading Saudi debt financing.
- JV offtake commitment covers up to 50,000 t/y of Okanjande concentrate, exceeding the mine’s PEA nameplate.
- Negotiations are “well advanced” for a 25,000 t/y long‑term anode material offtake with unnamed global battery manufacturers.
- Location in Yanbu’s industrial district leverages port logistics on the Red Sea for concentrate import and product export.
- For other graphite developers, the structure illustrates how upstream mines can be anchored by downstream JV processing hubs.
Our Take
With a contemplated 10-year mine life and a relatively modest US$35 million restart cost at Okanjande in Namibia, Northern Graphite is effectively using a lower-capex African feed source to underpin a much larger downstream graphite anode materials footprint in Saudi Arabia.
The 51/49 joint-venture split with Al Obeikan Group in Yanbu, combined with Saudi Industrial Development Fund backing under Vision 2030, signals that foreign graphite players are likely to access the kingdom’s battery-materials build-out mainly via minority positions tied to local industrial sponsors.
Among the several graphite and graphite anode materials items in our database, this is one of the few that couples African concentrate supply with Middle East processing, suggesting emerging cross-regional supply chains designed to reduce dependence on China for lithium-ion battery inputs.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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