Apart from signing multi-year offtake agreements, General Motors and Panasonic have also committed to make an initial $25m equity investment each in NMG
Aerial photo of the Bécancour industrial park showing NMG’s land for its Phase-2 Bécancour Battery Material Plant at the front and GM’s Ultium CAM plant at the back. (Credit: Nouveau Monde Graphite)
Canada-based miner Nouveau Monde Graphite (NMG) has signed multi-year offtake agreements with General Motors Holdings and Panasonic Energy.
As agreed, General Motors and Panasonic Holdings will purchase 18,000 tonnes per annum of active anode material each for an initial period of six and seven years, respectively. The supply will represent approximately 85% of the NMG’s Phase-II production.
Around 95% of the anode side of electric vehicle (EV) batteries are made of graphite.
The sales price will be based on an agreed price formula based on future prevailing market prices, a pricing mechanism to satisfy project financing ratios and meet stable procurement for the two companies.
General Motors and Panasonic Holdings have also committed to make an initial $25m equity investment each in NMG, directly or through an affiliate.
The investment, which is subject to certain conditions, will be for advancing NMG’s Phase-II operations – the Matawinie Mine and the Bécancour Battery Material Plant, in accordance with their respective specifications.
Separately, NMG has also received financial backing of $37.5m from strategic partner Mitsui and long-time investor Pallinghurst.
NMG chair Arne H Frandsen said: “Today, influential actors in strategic minerals, modern commodities, batteries, and EVs are coming together to drive the establishment of a Canadian source of graphite to support energy autonomy, national security, and global decarbonisation.
“I am confident that such commercial and investment levers will constitute the bedrock on which NMG can build its Phase II operations and more.”
GM Global Purchasing and Supply Chain vice-president Jeff Morrison said: “Our collaboration with NMG is a milestone for the industry, and in our ongoing development of a more sustainable and resilient battery supply chain.
“From our assembly plants and battery cell plants in the U.S., to our investments across the supply chain, we are developing a North American EV ecosystem aimed at benefiting consumers, expanding economic opportunity, and creating a competitive advantage for GM.”
In April last year, construction and mining equipment manufacturer Caterpillar signed definitive agreements to supply NMG’s Matawinie Mine with a comprehensive solution to cover a zero-exhaust emission fleet, supporting infrastructure, and service.