- Multiyear offtakes and strategic investments from Panasonic
Energy and GM covering approximately 85% of NMG’s planned Phase-2
fully integrated production of active anode material.
- Aggregate combined investment of US$50 million by Panasonic and
GM, with a private placement of US$37.5M by Mitsui & Co., Ltd
(“Mitsui”) and Pallinghurst Bond Limited (“Pallinghurst”) to
surrender and cancel their convertibles notes dated November 8,
2022, upon the vote of the shareholders of NMG in accordance with
MI-61-101 and regulatory approvals.
- Demonstration of strong long-term bankability underpinnings to
support NMG’s Phase-2 project financing via offtake agreements and
intended future investments by the Anchor Customers or their
affiliates of up to US$275 million.
- Acquisition of the Lac Guéret property, one of the largest
graphite deposit set to underpin NMG’s planned Phase-3 expansion,
for the development of the Uatnan Mining Project.
- Launch of an innovative training program in green technology
industrial processes in partnership with the region’s education and
industrial partners to secure a local and qualified workforce for
the Phase-2 Bécancour Battery Material Plant.
- Active stakeholder engagement including meetings held with over
300 regional companies in recent months to identify local capacity
and plan the Company’s procurement strategy for the Phase-2
Bécancour Battery Material Plant.
- Appointment of Pomerleau as Construction Manager for the
pre-construction stage of Phase-2 commercial facilities and
continued engineering for the Matawinie Mine and Bécancour Battery
Material Plant towards the final investment decision (“FID”).
- Recognition of robust ESG credentials: NMG tops Benchmark
Mineral Intelligence’s Sustainability Index as the only natural
graphite producer in the “Industry Leading” category ahead of all
Western, African, and Chinese producers.
- Continued active engagement with additional potential tier-1
customers in the EV and battery sector with the production of
battery-grade samples, site visits, quality checks, commercial
discussions, and environmental diligence reviews.
- Advanced discussions with multiple governmental agencies and
programs, strategic investors, and lenders to optimize the targeted
capital structure for the Phase-2 project financing.
- North America expected to surpass Asia in the anode market
outside China thanks to increased production capacity and
structural sourcing partnerships such as NMG’s with Panasonic
Energy and GM (Benchmark Mineral Intelligence, February 2024).
- EV sales reported to have crossed the adoption tipping point in
23 countries in 2023 with 13.6 million EVs sold globally – a 31%
increase – and projected growth of between 20% and 30% for 2024
according to market analysts (Rho Motion and Bloomberg, January
2024).
- Continued focus on the safe and responsible conduct of
operational and construction activities, no major environmental
incidents, and carbon-neutral year-end balance through verified
offsetting via 660 certified carbon credits.
- Period-end cash position of $36.3 million.
Through its year-end financial reports and 2023 Annual Report,
Nouveau Monde Graphite Inc. (“NMG” or the “Company”) (NYSE:NMG,
TSXV: NOU) publishes a positive progress report in advancing what
is projected to be North America’s first integrated source of
natural graphite active anode material for electric vehicles (“EV”)
and batteries. Strategically executing its phased development plan,
NMG has continued operating its Phase-1 facilities to produce
battery-grade samples and optimize its processes, has signed
commercial agreements and strategic investments with 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), to underpin its Phase-2
commercial production, and has acquired the Uatnan Mining Project
to support its Phase-3 expansion.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240328921660/en/
NMG’s 2023 Annual Report can be consulted
at
https://nmg.com/wp-content/uploads/2024/03/NMG-2023-Annual-Report.pdf
(Graphic: Business Wire)
Arne H Frandsen, Chair of NMG, declared: “After months and years
of relentless commercial engagement and product qualification
efforts, we reached a transformational milestone: multiyear offtake
agreements with global leaders Panasonic Energy and GM, accompanied
by equity participation and further committed investments. Our
trajectory towards becoming North America’s leading,
fully-integrated natural graphite producer is not just timely; it
complements the collective goals of greater energy autonomy,
national security, and sustainability.”
Eric Desaulniers, Founder, President and CEO of NMG, said:
“Record-breaking global spending on the clean energy transition –
US$1.8 trillion investment – speaks volumes about the imperative
necessity Western economies face in securing the minerals and
advanced materials required to power new technologies. Our team is
now updating our production parameters in light of Panasonic Energy
and GM’s specifications, and mapping our transition to commercial
operations.”
De-risking Technological Platform: Phase 1
The Company’s Phase-1 facilities, covering every stage of NMG’s
integrated value chain, enable sample production for Anchor
Customers and other potential customers, testing of production
modules, refinement of process efficiency, as well as technological
optimization of advanced manufacturing processes. Leveraging this
technological platform, over 4,200 samples were reviewed and
prepared by the Company’s battery laboratory in 2023.
Production and batch testing according to the individual
requirements of each manufacturer support sales discussions,
engineering of the Phase-2 facilities, development of quality
control and assurance protocols, and staff training in preparation
for commercial operations. The Company has collaborated with
education and industrial partners in the Bécancour region to launch
an innovative training program to equip the local workforce with
qualifications and training in green technology industrial
processes. Five students within the first cohort are working at NMG
Phase-1 plants throughout their training and are on track to become
permanent employees upon their graduation.
Matawinie Mine & Bécancour Battery Material Plant: Phase
2
In February 2024, NMG entered into multiyear offtake agreements
for its active anode material, covering approximately 85% of the
Company’s planned Phase-2 fully integrated production, with its
Anchor Customers. NMG and Panasonic Energy signed a binding offtake
agreement for the supply of 18,000 tpa of active anode material
production for an initial period of seven years from the
commencement of the Company’s Phase-2 production. NMG also signed a
supply agreement with GM for 18,000 tpa of active anode material
for an initial term of six years.
Each of Panasonic and GM also made an initial US$25-million
equity investment in NMG to support the advancement of the
Company’s Phase-2 operations in line with their respective product
specifications. The Company is now updating production parameters
for the Phase-2 Bécancour Battery Material Plant. Intel from
Phase-1 operations and Anchor Customers’ product specifications
inform engineering and opportunities for technological refinement.
Adjustments have namely been made to the graphite flotation
cleaning circuit to optimize processing in refining stages,
positively impacting both metallurgical performance and capital
costs.
In addition, pre-construction planning is progressing for the
Matawinie Mine and the Bécancour Battery Material Plant through the
preparation of a detailed construction sequence and schedule,
development of the contracting strategy including meetings with
contractors to assess local capacity, as well as expansion of
health and safety, environment, and quality programs. Construction
Manager Pomerleau Inc. is also contributing to the budget revision
and cost optimization exercises. Construction permit demands and
long-lead items tendering packages are being prepared in view of
the final investment decision (“FID”) and launch of
construction.
Following a positive FID, Panasonic, together with potential
co-investors, and GM have committed to further invest an aggregate
of up to US$275 million, subject to certain conditions, as part of
construction funding for NMG’s Phase-2 facilities. NMG continues to
advance financing efforts with export credit agencies, governments,
strategic investors, and potential customers to frame a robust
capital structure that leverages international debt, government
funding and equity.
The Company maintains intensive commercial discussions and
continued product qualification with other tier-1 battery
manufacturers for the balance of its Phase-2 production.
Growth Beyond: Phase 3
In January 2024, NMG acquired of 100% of the Lac Guéret
Property, targeted for the development of the Uatnan Mining
Project. As NMG’s team expands its relationships with the Innu
First Nation of Pessamit, the community and local stakeholders, the
Company will prepare for subsequent studies to advance the Uatnan
Mining Project to the feasibility stage.
The acquisition of another major asset in Québec, Canada,
underpins the Company’s expansion plans timed with projected supply
and demand imbalance in the North American anode market (Benchmark
Mineral Intelligence, Q4-2023).
Market Perspectives
The battery and EV outlook remains highly attractive with
continued growth in the sector. In 2023, a remarkable 689 GWh was
added to the EV parc, up 40% compared to the previous year (Adamas
Intelligence, March 2024). EV sales crossed the adoption tipping
point in 23 countries with a total of 13.6 million EVs sold
globally – a 31% increase from 2022. Market analysts project
further growth between 20% and 30% in 2024 (Rho Motion and
Bloomberg, January 2024). To support EV manufacturing, the
lithium-ion battery industry is now developing 9,388 GWh of global
production capacity by 2030 through 415 gigafactories (Benchmark
Mineral Intelligence, February 2024).
Raw materials required to produce batteries and EVs are becoming
constrained in light of continued growth and geopolitical trade
limitations. Since December 2023, China imposes restrictions on
graphite exports, exacerbating pressure on the battery supply
chain. China currently controls approximately 77% of the graphite
extraction global production (US Geological Survey, January 2024)
and 95% of spherical graphite refining for lithium-ion batteries
(Benchmark Mineral Intelligence, February 2024).
In turn, the U.S. Government issued its guidance on foreign
entities of concern for EV tax credits under the Inflation
Reduction Act. Battery material companies’ location, ownership, as
well as technology licenses tied to China, North Korea, Iran, and
Russia are specifically excluded from these incentives.
Such measures reaffirm the importance of establishing a local,
resilient, and ESG-compliant supply chain of graphite to support
battery and EV production. With an acceleration of graphite
onshoring, North America is projected to overtake Asia as the
region with the largest ex-China anode capacity (Benchmark Mineral
Intelligence, February 2024).
Canada is among the emerging leaders of this new economy,
ranking first, ahead of China, according to BloombergNEF’s annual
global lithium-ion battery supply chain report (February 2024), due
to its mineral resources, ESG factors, key infrastructure,
innovation, and industry including Québec’s battery valley in
Bécancour. NMG’s site for its Phase-2 Bécancour Battery Material
Plant is located at the center of this fast-developing zone,
supported by the Québec Government’s battery hub strategy.
NMG is positioning itself to respond to these market trends. The
Company is strategically located to cater to the North American and
European markets with its large graphite deposit, proprietary
ecotechnologies, demonstrated production capacity, carbon-neutral
profile as well as preferential jurisdiction advantages including
clean hydropower, flexible logistical base, and stable fiscal and
political environment.
Corporate & ESG
The Company is committed to providing a safe work environment to
its staff and business partners. In 2023, NMG had an Occupational
Safety and Health Administration (“OSHA”) Recordable Incident Rate
of 3.63 at its facilities and 0 at its contractors’ worksite. NMG
initiated a culture-shaping initiative in 2023 that is set to
extend and expand as the Company prepares and launch construction
of its Phase-2 sites, and later starts operational readiness
planning.
For the same period, NMG maintained its track record with no
major environmental incidents as per the Global Reporting
Initiative’s definition.
The Company reports GHG emissions of 644 tonnes of CO2
equivalent associated with carrying out operations at its Phase-1
plants and corporate offices in 2023. NMG has purchased 660 carbon
credits certified to the Verified Carbon Standard (VCS) Program to
offset this balance. Credits align with NMG’s Climate Action Plan
offsetting strategy, drive investments in developing economies
affected by climate change and support the following nature-based
projects:
- Conservation of 10,614 hectares of boreal forest in Québec’s
Abitibi region.
- Forest plantations on 21,298 hectares of degraded lands
previously subject to extensive grazing in the Guanaré Forest in
Uruguay.
NMG voluntarily reports under the Climate Disclosure Project
(“CDP”) to demonstrate its management of climate risks and
opportunities, environmental performance and GHG reduction efforts,
as well as climate action. The Company’s 2023 rating and survey
responses are now publicly available on CDP’s platform.
Furthermore, a dedicated ESG Report set to be published in Q2-2024
will provide additional visibility over the extent of the Company’s
efforts and performance regarding climate action, environmental
stewardship, governance, and social engagement.
NMG tops Benchmark Mineral Intelligence’s Sustainability Index
for producer as the only natural graphite producer in the “Industry
Leading” category ahead of all Western, African, and Chinese
producers according to the comprehensive examination of ESG
practices, transparency, and engagement.
Alongside the Anchor Customers’ investment, Mitsui & Co.,
Ltd (“Mitsui”) (TYO: 8031) committed to a private placement of
US$25 million and Pallinghurst Bond Limited (“Pallinghurst”) of
US$12.5 million to surrender and cancel their respective
convertible notes dated November 8, 2022, as amended and restated,
subject to regulatory approvals and requirements of Regulation
61-101 respecting Protection of Minority Security Holders in
Special Transactions (“MI 61-101”). A special meeting of the
shareholders of NMG has been scheduled on May 1, 2024, to review
the related party transactions as per MI 61-101.
NMG’s period-end cash position is $36.3 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
Subscribe to our news feed: https://bit.ly/3UDrY3X
Cautionary Note
All statements, other than statements of historical fact,
contained in this press release including, but not limited to those
describing the closing of the transactions contemplated with
Pallinghurst and Mitsui, start of commercial operation of the
Bécancour Battery Material Plant and the Matawinie Mine, the
planned construction of the Bécancour Battery Material Plant and
Matawinie Mine, the development of the Uatnan Mining Project, a
positive final investment decision and closing of project
financing, receipt of any regulatory approvals and permits in
respect of the initiatives described herein, the anticipated
benefits of the initiatives described herein, the Company’s
initiatives and commitments described in this press release,
including those related to ESG, the positive impact of the
foregoing on project economics, the Company’s relationship with its
stakeholders, including suppliers, contractors and employees, the
realization of the condition precedents of the supply agreements
and their entry into force, the intended supply of active anode
material to GM and Panasonic Energy, expected volume of active
anode material per year, market and industry trends, the general
business and operational outlook of the Company, 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 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/20240328921660/en/
MEDIA Julie Paquet VP Communications and ESG Strategy
+1-450-757-8905, ext. 140 jpaquet@nmg.com
INVESTORS Marc Jasmin Director, Investor Relations
+1-450-757-8905, ext. 993 mjasmin@nmg.com
Nouveau Monde Graphite (TSXV:NOU)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Nouveau Monde Graphite (TSXV:NOU)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
