Governments inject $50M into Nouveau Monde Graphite to support its ore-to-battery-material plans

Nouveau Monde Graphite (NYSE: NMG; TSX.V: NOU) announced an equity investment by Canada Growth Fund (CGF) and the Quebec government – via its agent Investissement Québec – in Nouveau Monde Graphite (NMG) for US$50 million to support its second phase ore-to-battery-material graphite operations. The investment will advance NMG’s phase 2 Quebec-based Matawinie mine and Bécancour battery material plant, both of which are within 150 km of Montréal, Que.

The investment – with capital shared equally between both governments – enables progress on detailed engineering, orders of key long-lead items and support to critical-path activities. NMG’s integrated phase 2 production of active anode material is destined for the North American battery and EV markets. Both levels of government made the strategic investment because NMG’s business model and recognized ESG profile align with the critical mineral strategy and battery value chain actively promoted by governments.

Investissement Québec’s support and the addition of the Canada Growth Fund – a C$15-billion independent and arm’s length public fund of the federal government to help attract private investors for green projects – to NMG’s large shareholders strengthen the company’s backing of key institutional investors and provide a favourable roadmap to project financing upon a positive final investment decision.

Eric Desaulniers, founder, president, and CEO of NMG, stated: “As a project developer, NMG requires credible financial partners to share risks and unlock value in this strategic and geopolitically important sector. Rounding up 2024 marked by significant progress in our business plan, we are setting our sights on the remaining milestones to reach final investment decision … We are committed to delivering high-performing and reliable active anode materials to the North American battery and electric vehicle markets, contributing to a local, sustainable, and reliable supply chain.”

The company is still awaiting a final investment decision, pending remaining regulatory approvals. Nouveau Monde is finalizing an updated feasibility study as part of its second phase operations. In preparations for a final investment decision, NMG recently signed an impact and benefit agreement with the Atikamekw First Nation of Manawan with respect to the Metawinie mine. Prior to that, NMG received a provincial ministerial decree authorizing the Matawinie mine and key permits to support preliminary infrastructure work on both sites. In January 2020, the Municipality of Saint-Michel-des-Saints and NMG signed a collaboration and benefit-sharing agreement for the Matawinie mining project.

Nouveau Mondre Graphite is continuing integrated phase 2 operations to optimize production parameters, engineering, and cost projections. The company expects updated results in the early part of the first quarter in 2025. More information is posted on www.NMG.com.