- Accelerated engineering of Phase-2 facilities to update the
results of the Company’s integrated ore-to-anode-material
feasibility study in view of the specific requirements from
Panasonic Energy and GM, CAPEX optimization, and other project
planning developments, in preparation for FID.
- Preliminary work is ongoing at the Phase-2 Bécancour Battery
Material Plant site in preparation for the launch of
construction.
- Progress on the development of zero-emission equipment for the
Matawinie Mine by Caterpillar as a result of direct involvement
from respective technical and mining teams informing an integrated
solution tailored to NMG’s site.
- Approval by the regulatory body of the powerline path set to
connect the Matawinie Mine to the hydropower network.
- NMG was awarded a $500,000 research grant to advance the
development of versatile next-generation active anode
materials.
- Continued commercial engagement with tier-1 battery and EVs
manufacturers for the balance (approximately 15%) of the Phase-2
Bécancour Battery Material Plant active anode material
production.
- Improving market conditions exemplified by 9.9% year-to-date
increase in natural graphite prices (Benchmark Mineral
Intelligence, June 2024), increasing demand for anode materials in
the Western World, announced 25% US tariff on Chinese imports, and
sustained growth (20%) in global EV sales (Rho Motion, July
2024).
- Reappointment of the Directors and adoption of all resolutions
submitted at the Company’s Annual General and Special Meeting of
Shareholders.
- Period-end cash position of $73.9 million.
Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG,
TSX.V: NOU) reports on its progress to bring the Phase-2 Matawinie
Mine and Bécancour Battery Material Plant toward a final investment
decision (“FID”), while planning a Phase-3 expansion via its Uatnan
Mining Project and complementary value-added processing facilities.
The Company’s multiyear offtake agreements with Anchor Customers
Panasonic Energy Co., Ltd. (“Panasonic Energy”), a wholly owned
subsidiary of Panasonic Holdings Corporation (“Panasonic”) (TYO:
6752), and General Motors Holdings LLC, a wholly owned subsidiary
of General Motors Co. (collectively, “GM”) (NYSE:GM) (GM and
Panasonic being collectively the “Anchor Customers”), combined with
improved market dynamics and attractive long-term perspectives
provide solid underpinnings for scaling up operations from its
Phase-1 facilities to construction and commercial production.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240815600388/en/
NMG’s site for the Phase-2 Bécancour
Battery Material Plant during preliminary work covering tree
clearing, site leveling and construction of an onsite road. (Photo:
Business Wire)
Arne H Frandsen, Chair of NMG, declared: “The fundamentals of
NMG’s business model continue to be reaffirmed by governments and
manufacturers’ quest to secure resilient, local, and dependable
supply chains for energy autonomy, national security, and
decarbonization plans. NMG’s efforts are centered on crystallizing
our position as North America’s first and largest fully integrated
producer of natural graphite anode material and creating value for
our shareholders and stakeholders at every stage.”
Eric Desaulniers, Founder, President, and CEO of NMG, stated:
“Backing from our Anchor Customers, trade restriction from Western
governments promoting onshoring and friendshoring of battery
materials, plus a clear demand/supply deficit for anode material
looming in North America create sustained tailwinds as we near FID
for our Phase 2 and start assessing sites for our Phase-3
processing expansion. With nearly $75 million of cash position,
Team Nouveau Monde is focused on the disciplined execution of our
business strategy through updating of operational parameters of our
integrated feasibility study, optimizing CAPEX and procurement, as
well as adjusting our project financing structure to leverage tax
credits, grants and debt/equity instruments.”
Path to Commercial Production: Phase 2
Using an integrated project team (“IPT”) model, the Company is
preparing for the launch of the Phase-2 Matawinie Mine and
Bécancour Battery Material Plant once minimum financing is reached.
NMG's in-house team and strategic consultants specializing in
engineering, procurement, construction management, and project
controls are working collaboratively to advance engineering, and
finalize pre-construction deliverables (comprehensive construction
sequence, schedule, contracting strategy, programs for health,
safety, environment, and quality).
Updated cost projections reflecting the advancement in
engineering, cost optimization, and construction planning are being
prepared for the updated integrated feasibility study underway.
Outputs will support project financing in view of FID. NMG
continues to engage with governmental agencies, strategic
investors, and lenders to secure a robust capital structure.
Additionally, an external tax specialist firm has been tasked with
optimizing the Phase-2 CAPEX eligibility for the new Canadian
Investment Tax Credit for Clean Technology Manufacturing, which
offers a refundable tax credit of up to 30% of eligible capital
expenditures.
At the Phase-2 Bécancour Battery Material Plant site,
preliminary works were carried out in recent months to complete
tree clearing and the construction of an on-site road.
The Company is reporting progress on the development of
zero-emission equipment for the Matawinie Mine on the basis of
strategic agreements with Caterpillar Inc. (“Caterpillar”). Site
visits, prototypes demonstrations and modeling solutions inform
dynamically NMG’s electrification plans and the development of an
integrated tailored solution for the Matawinie Mine covering the
fleet, charging infrastructure and operating site management. In
addition, the final path for the dedicated powerline set to connect
the mining site to Hydro-Québec’s hydropower network for enabling
the full electrification of the Matawinie Mine was reviewed and
approved by the regulatory body.
Business Development & Market Perspectives
In addition to offtake agreements signed with Panasonic Energy
and GM, NMG is actively engaged with other tier-1 potential
customers for offtake agreement(s) on the balance of its Phase-2
active anode material production accompanied by strategic
investments. The Company’s Phase-1 operations support technical
marketing and product qualification efforts with said
manufacturers.
NMG is also preparing the following commercial phase with its
targeted Phase-3 expansion. In preparation for the Uatnan Mining
Project development, an initial technical and economic planning
study covering camp and logistics requirements is currently being
carried out by a local engineering firm to inform next steps. The
Company has also initiated the assessment of industrial sites for
the establishment of battery material plants to refine the future
Uatnan graphite concentrate production, including in Québec,
Europe, Middle East and the U.S., close to its potential customer
base.
Following a period of pressured market conditions, Q2-2024
generated a 9.9% year-to-date increase in natural graphite pricing
according to Benchmark Mineral Intelligence’s index (June 2024).
The anode material market is experiencing a steady rise in demand,
matched by incremental expansions in production capacities,
especially outside of China. Long-term growth is bolstered by
investments in ex-China natural anode material capacity and
recently announced reinstatement of a 25% U.S. tariff on Chinese
natural graphite imports starting in 2026.
Looking ahead, a sustained deficit in active anode material
supply is anticipated to drive price higher, with the market
expected to enter a prolonged deficit phase from 2029 onward.
Demand for active anode materials is projected to reach
approximately 1.37 million tonnes in 2024, a 32% increase from 2023
(Benchmark Mineral Intelligence, July 2024). The market is largely
driven by EVs, and secondarily by energy storage systems and
portable electronics.
Despite signs of a potential slowdown in EV adoption, the
industry, particularly for major automakers like Hyundai/Kia,
Toyota and Ford, showed robust growth with sales surging between
56% and 86% year-over-year (Bloomberg, May 2024). In the first half
of 2024, global EV sales reached 7 million units, marking a 20%
increase in comparison with the same period last year (Rho Motion,
July 2024).
Market conditions remain favorable to NMG’s business strategy,
especially with long-term incentives and trade instruments from
Western governments targeting onshoring and friendshoring of
battery materials.
Corporate Matters
In June 2024, NMG was awarded a $500,000 research grant from the
Québec Ministry of Natural Resources to develop a versatile
next-generation active anode material that meets the highest
performance standards without sacrificing production yield. This
grant directly supports NMG’s research and development portfolio to
refine its line of specialty products targeting innovation, reduced
environmental footprint, and increased competitiveness.
At the Company’s Annual General and Special Meeting of
Shareholders, shareholders reappointed each of the eight nominees
as Directors and adopted all other resolutions submitted for their
approval. The meeting was complemented with a corporate
presentation by NMG’s executive team providing an update on the
Company’s key projects, commercial engagement, and growth plan.
For the twelve-month rolling period ended June 30, 2024, NMG
reported a total recordable injury frequency rate of 2.57 and
severity rate of 0 at the Company’s facilities. There were no
environmental incidents during this period. The period-end cash
position is $73.9 million.
About Nouveau Monde Graphite
Nouveau Monde Graphite is an integrated company developing
responsible mining and advanced manufacturing operations to supply
the global economy with carbon-neutral active anode material to
power EV and renewable energy storage systems. The Company is
developing a fully integrated ore-to-battery-material source of
graphite-based active anode material in Québec, Canada. With
enviable ESG standards and structuring partnerships with anchor
customers, NMG is set to become a strategic supplier to the world’s
leading lithium-ion battery and EV manufacturers, providing
high-performing and reliable advanced materials while promoting
sustainability and supply chain traceability. www.NMG.com
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Cautionary Note
All statements, other than statements of historical fact,
contained in this press release including, but not limited to those
describing the update of the feasibility study for its Phase 2
reflecting the technological advancements, specific requirements of
the Anchor Customers, budget optimization, and other project
planning developments, to support project financing, and the
discussions with various governmental agencies, strategic
investors, and lenders, as well as the advantages of its project
execution model to ensure greater control over the project’s
direction and reduction project management and engineering costs,
the active discussions and positive outcome with other tier-1
potential customers for the balance of its Phase-2 active anode
material production, strategic investments and the potential of the
Phase 3 Uatnan project to meet the western market growth, the
assessment of industrial sites for the establishment of production
plants for such production, and the intended results of the
initiatives described in this press release and those statements
which are discussed under the “About Nouveau Monde” paragraph and
elsewhere in the press release which essentially describe the
Company’s outlook and objectives, constitute “forward-looking
information” or “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of Canadian and
United States securities laws, and are based on expectations,
estimates and projections as of the time of this press release.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the
Company as of the time of such statements, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. These estimates and assumptions may prove to be
incorrect. Moreover, these forward-looking statements were based
upon various underlying factors and assumptions, including the
current technological trends, the business relationship between the
Company and its stakeholders, the ability to obtain sufficient
financing for the development of the Matawinie Mine and the
Bécancour Battery Material Plant, the Company’s ability to provide
high-performing and reliable advanced materials while promoting
sustainability and supply chain traceability, the consumers demand
for components in lithium-ion batteries for EVs and energy storage
solutions, the ability to operate in a safe and effective manner,
the timely delivery and installation at estimated prices of the
equipment supporting the production, assumed sale prices for
graphite concentrate, the accuracy of any Mineral Resource
estimates, future currency exchange rates and interest rates,
political and regulatory stability, prices of commodity and
production costs, the receipt of governmental, regulatory and third
party approvals, licenses and permits on favorable terms, sustained
labor stability, stability in financial and capital markets,
availability of equipment and critical supplies, spare parts and
consumables, the various tax assumptions, CAPEX and OPEX estimates,
all economic and operational projections relating to the project,
local infrastructures, the Company’s business prospects and
opportunities and estimates of the operational performance of the
equipment, and are not guarantees of future performance.
Forward-looking statements are subject to known or unknown risks
and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. Risk factors that could cause actual results or events
to differ materially from current expectations include, among
others, those risks, delays in the scheduled delivery times of the
equipment, the ability of the Company to successfully implement its
strategic initiatives and whether such strategic initiatives will
yield the expected benefits, the availability of financing or
financing on favorable terms for the Company, the dependence on
commodity prices, the impact of inflation on costs, the risks of
obtaining the necessary permits, the operating performance of the
Company’s assets and businesses, competitive factors in the
graphite mining and production industry, changes in laws and
regulations affecting the Company’s businesses, including the
changes in China’s policy regarding restrictions on Chinese
graphite materials exportations, political and social acceptability
risk, environmental regulation risk, currency and exchange rate
risk, technological developments, and general economic conditions,
as well as earnings, capital expenditure, cash flow and capital
structure risks and general business risks. A further description
of risks and uncertainties can be found in NMG’s Annual Information
Form dated March 27, 2024, including in the section thereof
captioned “Risk Factors”, which is available on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov. Unpredictable or
unknown factors not discussed in this Cautionary Note could also
have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or
indirectly affect, and could cause, actual results to differ
materially from those expressed or implied in any forward-looking
statements. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements are provided for the purpose
of providing information about management’s expectations and plans
relating to the future. The Company disclaims any intention or
obligation to update or revise any forward-looking statements or to
explain any material difference between subsequent actual events
and such forward-looking statements, except to the extent required
by applicable law.
The market and industry data contained in this press release is
based upon information from independent industry publications,
market research, analyst reports and surveys and other publicly
available sources. Although the Company believes these sources to
be generally reliable, market and industry data is subject to
interpretation and cannot be verified with complete certainty due
to limits on the availability and reliability of raw data, the
voluntary nature of the data-gathering process and other
limitations and uncertainties inherent in any survey. The Company
has not independently verified any of the data from third-party
sources referred to in this press release and accordingly, the
accuracy and completeness of such data is not guaranteed.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Further information regarding the Company is available in the
SEDAR+ database (www.sedarplus.ca), and for United States readers
on EDGAR (www.sec.gov), and on the Company’s website at:
www.NMG.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240815600388/en/
MEDIA Julie Paquet VP Communications & ESG Strategy
+1-450-757-8905 #140 jpaquet@nmg.com
INVESTORS Marc Jasmin Director, Investor Relations
+1-450-757-8905 #993 mjasmin@nmg.com
Nouveau Monde Graphite (NYSE:NMG)
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Nouveau Monde Graphite (NYSE:NMG)
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