Saudi Arabia and Canada are partnering to build a large-scale Battery Anode Material (BAM) facility in Yanbu Industrial City. The $200 million project aims to strengthen Saudi Arabia’s role in global energy materials supply chains. It will also boost the Kingdom’s position as a hub for advanced manufacturing, clean energy, and sustainable industrial development.
The joint venture company will be 51 percent owned by Obeikan and 49 percent by Northern Graphite Corporation. This partnership combines Obeikan’s local industrial experience with Northern Graphite’s battery material expertise. Consequently, it ensures operational efficiency and technical quality.
Construction will start in 2026. First-phase production is scheduled for 2028. The facility will initially produce 25,000 tonnes per year. Later, capacity will expand to meet rising global demand for graphite anodes outside China. As a result, the plant will play a key role in global battery supply chains.
The joint venture partners will fund the project based on ownership shares. Moreover, Obeikan will coordinate local debt financing. Both companies will work with commercial banks to secure additional capital. These measures will guarantee financial stability for the project.
Hugues Jacquemin, CEO of Northern Graphite, said the project marks a key step in Northern’s transition into a fully integrated battery anode producer. He added that the partnership brings scale, funding strength, and access to a strategic industrial hub. This will accelerate production and market reach.
Abdallah Obeikan, CEO of Obeikan Investment Group, emphasized that the project aligns with Saudi Arabia’s ambitions in advanced materials and clean energy. He stated the joint venture will create a world-class BAM hub in Yanbu, strengthening the Kingdom’s industrial position.
The facility will connect Northern’s Okanjande mine in Namibia to battery-grade output. Therefore, it will ensure a traceable supply and boost Saudi Arabia’s role in energy materials globally.
Analysts say the plant will strengthen the Middle East’s renewable energy sector by securing access to high-quality anode materials. Additionally, it positions Saudi Arabia as a global leader in battery and clean energy manufacturing.
The project combines international expertise with local infrastructure. It aims to meet global demand while supporting industrial diversification, creating jobs, and driving sustainable economic growth in Saudi Arabia.
