Slide 1: Molo Graphite Project
The only project with graphite. Molo Graphite Project MADAGASCAR TSX : NEXT OTCQB : NSRCF
Slide 2: Qualified person & forward looking statements
Qualified person & forward looking statements Mr. Craig Scherba, P.Geo., President and CEO of NextSource Materials, is the qualified person who reviewed and approved the technical information provided in this presentation. Safe Harbour: This presentation contains statements that may constitute “forw
Slide 3: Our strategic partner
Our strategic partner Highly Experienced Team with significant experience across the mine development lifecycle. Sir Mick Davis • Former CEO of Xstrata Plc • Former CFO of Billiton plc and Chairman of Billiton Coal • Former Founder and partner at X2Resources,a $5.6B mining investment fund • Chairman
Slide 4: Sir Mick Davis Chairman
Sir Mick Davis Chairman 4 © NextSource Materials Inc.
Slide 5: Fully funded and Phase 1 mine construction in progress
Fully funded and Phase 1 mine construction in progress • Mine procurement commenced May 2021 • Site works expected to begin Q3/Q4 2021 • Plant equipment installation beginning in Q1 2022 • Mine commissioning in Q2 2022 • Mining & Environmental permits in place (40 years) • Offtakes finalized for 100
Slide 6: Molo flake graphite project in Fotadrevo, Madagascar
Molo flake graphite project in Fotadrevo, Madagascar Mozambique Madagascar NO STRANGER TO MINING. $+8 Billion Ambatovy Nickel & Cobalt Project (Sherritt, Sumitomo, KORES) Shipping Ports: ★ Tulear & Soalara ★ Rio Tinto $1 Billion Mineral MOLO Sands Project ★ Graphite Project Fort Dauphin Shipping Por
Slide 7: First-mover advantage with vertical integration
First-mover advantage with vertical integration Mine - Initial Production ED • 17k tpa ND FU • Offtakes being finalized for 100% of product April 2022 Battery Anode Facility (BAF) • Initial production output TBC • Technical study being fast-tracked to confirm CAPEX & OPEX Q4 2022 TARGETED Phase 2 Ex
Slide 8: Fully modular plant with minimal footprint
Fully modular plant with minimal footprint Actual representation of the all-modular Molo mine. 9-month build time Source: 2019 Molo FS • Established and proven modular plant solutions fabricator currently supplying major CPG firms • Entire plant is 42 modules • Constructed off-shore (6 months) – at
Slide 9: A very high-quality flake concentrate
A very high-quality flake concentrate VERIFIED by end-users for ALL top demand markets The ONLY project with FLAKE GRADE DISTRIBUTION MARKETS PRODUCTS (Carbon) Jumbo Refractories, Foils for Fire 24% 96-97% • % of large & jumbo flake well (+48 mesh) Retardant & Electronics above global average Large
Slide 10: Flake graphite market = ~875,000 tpa
Flake graphite market = ~875,000 tpa REFRACTORIES BATTERIES GRAPHITE FOILS #1 #2 #3 ~495,000 tpa ~180,000 tpa ~75,000 tpa Majority of demand tied Experiencing largest growth Fastest growing segment to traditional steel market The Source: Roskill, Benchmark picture can't 10 © NextSource Materials Inc
Slide 11: Graphite demand by application
Graphite demand by application Graphite has a significant and well-established traditional usage. Over and above this, is the demand as a critical battery material. Source: Benchmark Mineral Intelligence 11 © NextSource Materials Inc.
Slide 12: Lithium ion battery construction
Lithium ion battery construction * *may contain ~0%-5% SiO depending on chemistry Source: Electronic Component News; AmericanEnergy Technologies 14 © NextSource Materials Inc.
Slide 13: EVs require significant amounts of graphite
EVs require significant amounts of graphite Each 100kWh EV requires ~250 pounds of flake graphite. Rule of Thumb: 2.5 lbs of flake graphite per kWh, all li-ion chemistries combined 15 Source: InvestorIntel, Benchmark Minerals © NextSource Materials Inc.
Slide 14: Demand for graphite for batteries expected to dwarf supply
Demand for graphite for batteries expected to dwarf supply More graphite supply will need to come on line to meet demand. Source: Benchmark Mineral Intelligence 16 © NextSource Materials Inc.
Slide 15: Natural graphite increasing in Li-ion batteries
Natural graphite increasing in Li-ion batteries Synthetic graphite anodes currently dominate, but more natural flake based anodes are being used for price and performance purposes. Natural graphite is less expensive and provides greater energy density (range) than synthetic. Source: Benchmark Minera
Slide 16: Graphite is the largest material by volume in Li-ion batteries
Graphite is the largest material by volume in Li-ion batteries What 200 gigafactories would Battery raw material demand if all 200 gigafactories in the mean for raw material demand pipeline operate at 100% capacity (3.4 TWh) 5,000,000 March 2021 4,000,000 3.4 TWh 200 battery megafactories Tonnes per
Slide 17: EV price parity is expected by 2024
EV price parity is expected by 2024 Big oil is running out of racetrack. By 2040, a third of the global EV Li-Bs are nearing $100/kWh, car fleet will be EVs the parity price of ICE EVs will surpass ICE sales by 2038 Source: Bloomberg NEF 20 © NextSource Materials Inc.
Slide 18: Major battery demand underway
Major battery demand underway Disruptor 21 © NextSource Materials Inc.
Slide 19: EV share of new car sales
EV share of new car sales EVs forecasted to By 2040, over half of all passenger vehicles outsell ICE by 2038 sold globally will be electric. 2040 58% 2030 2025 28% 10 2020 2.7% % Source: 2021 Bloomberg NEF 22 © NextSource Materials Inc.
Slide 20: Offtake partners secured for >100% of Phase 1 production
Offtake partners secured for >100% of Phase 1 production 16.10.2018 NextSource Materials Inc. and Prominent Japanese Trader of Leading OEM Anode Processor to supply EV battery anode to Tesla Supply Chain 23 © NextSource Materials Inc.
Slide 21: Vertical Integration Strategy
Vertical Integration Strategy NEWS RELEASE – Toronto, April 12, 2020 NextSource Materials Secures Partnership with Major Electric Vehicle Supply Chain to Build Battery Anode Facility 24 © NextSource Materials Inc.
Slide 22: 3-way partnership with key processors in Tesla supply chain
3-way partnership with key processors in Tesla supply chain PARTNER MINE SOURCE OEM SALES JAPANESE ANODE PRODUCERS MAJORITY OF JAPANESE OEMS & LEADING SPG PROCESSOR Competitive USP WITHIN TESLA SUPPLY CHAIN Pairs NextSource with a leading processor and a supplier of anode material within the Tesla s
Slide 23: Complete vertical integration capability & IP
Complete vertical integration capability & IP Turn-key facility with complete operational know-how • Immediate access to leading and established Exact duplicate of SPG spheroidization & coating technology IP for OEMs processing plant by current supplier to Tesla • Fast-tracks final QA/QC with OEMs t
Slide 24: More graphite supply is needed
More graphite supply is needed Graphite will play a major role in the decarbonization of the planet. • The graphite market is entering a period of unprecedented demand growth • Established lithium ion Anode demand will grow an average of 27% CAGR over next decade. technologies will dominate over the
Slide 25: Barrier to entry and first-mover advantage
Barrier to entry and first-mover advantage with • We will be the graphite project to reach production globally outside of China (Q2 2022) • Exclusive 3-way partnership to supply value-added graphite to Tesla supply chain with established anode processors • Fast-tracking expansion plans to meet expec
Slide 26: Sir Mick Davis quote on graphite and decarbonization
“My colleagues and I built Xstrata from humble beginnings by identifying the secular impacts in resource demand when China was urbanizing. I am convinced that we are on the cusp of an even larger secular change, driven by world- wide demand for battery material resources. Graphite is going to play a
Slide 27: The only project with graphite.
The only project with graphite. TSX : NEXT OTCQB : NSRCF 33