Northern Graphite Proposal for Battery Anode Material Plant in France Wins EU Strategic Project Status Strategic Project designation will streamline regulatory approvals, improve access to public and private financing and support potential off-take agreements
Northern Graphite Proposal for Battery Anode
Material Plant in France Wins EU Strategic
Project Status
Strategic Project designation will streamline regulatory approvals, improve access to
public and private financing and support potential off-take agreements
Northern's project will require €159 million (CAD $244M) in funding with initial BAM
production targeted for 2028
Project will use graphite from Northern's Okanjande project in Namibia and will diversify
and broaden the Company's geographic base
Ottawa, Ontario--(Newsfile Corp. - March 31, 2025) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(
"Northern" or the "Company"
) is pleased to
announce that its proposal to upgrade graphite from its Okanjande project in Namibia into Battery Anode
Material (
"BAM"
) in France has been selected as one of 47 Strategic Projects under the European
Union's Critical Raw Materials Act (
"CRMA"
).
The designation by the European Commission, the EU's executive body, qualifies Northern's project for
fast-tracked permitting and funding support in order to boost Europe's strategic raw material capacities
and diversify its sources of supply. The Strategic Projects cover 14 of the 17 strategic raw materials
listed in the CRMA, including lithium (22 projects), nickel (12 projects), cobalt (10 projects), manganese
(7 projects) and graphite (11 projects) which will particularly benefit the EU battery raw material value
chain.
Northern's Frankfurt-based Battery Materials Division (
"NGCBM"
) submitted the proposal last year to
take battery grade graphite from its Okanjande project in Namibia and upgrade it into Battery Anode
Material in a facility in France at a cost of some €159 million (CAD $244M). Under the scope of the
project, pre-purification, milling and shaping of the graphite would occur in Namibia and purification and
coating would take place at a new plant in France. Battery testing would take place at NGCBM's
laboratory in Germany. The mining of graphite at Okanjande is not covered under the scope of the
Strategic Project.
Northern's France BAM project is targeted to begin operations by 2028 with an initial capacity of 20,000
tonnes per year of battery-grade anode material, with the potential to scale up to 50,000 tonnes.
Northern is currently in active discussions with potential off-take partners for the initial production.
Figure 1: Project Scope
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"This is big news for our Company, providing us with portfolio diversification to complement our
Canadian operations and plans to supply North American markets," said Northern Chief Executive
Office Hugues Jacquemin. "This recognition provides us with critical tools and support necessary to
pursue development and execution of the project. It immediately enhances its credibility and visibility,
helps to accelerate timelines, facilitates faster permitting and improves access to financing while
ensuring compliance with the highest environmental and social standards."
Critical Raw Materials Act
The CRMA Strategic Projects framework is designed to help the EU meet self-sufficiency targets of 10%
extraction, 40% processing, and 25% recycling of key raw materials by 2030. To become operational,
the 47 Strategic Projects have an expected overall capital investment of €22.5 billion. In line with the
CRMA, the permit-granting process will not exceed 27 months for extraction projects and 15 months for
other projects. Recognition as a Strategic Project grants Northern's BAM facility access to fast-tracked
permitting, enhanced visibility, and greater access to financing and off-take support mechanisms.
The Critical Raw Materials Act came into force in May 2024.
It identified a list of raw materials
considered strategic due to their likelihood of representing supply risks in the near future amid projected
demand growth and the difficulties of scaling up production. The list includes raw materials used in
strategic sectors such as renewable energy, digital, aerospace and defence technologies.
Next steps include discussions with the financing sub-group of the Critical Raw Materials Board on how
each Strategic Project can be financially supported, considering both private and public sources of
funding. The sub-group brings together relevant national promotional banks, the European Investment
Bank, the European Bank for Reconstruction and Development, and private financial institutions, among
others.
Northern's proposed BAM facility in France will supply Original Equipment Manufacturers (OEMs),
including battery cell producers, with a critical component of lithium-ion batteries. Graphite in the form of
battery anode material represents the largest component by weight in these batteries, with each electric
vehicle requiring approximately 40 to 80 kilograms. According to Fastmarkets, annual global demand for
BAM is expected to exceed 500,000 tonnes by 2030, driven by EV production across the EU and
beyond.
"Northern's project is strategically positioned to meet the EU's urgent demand for a sustainable and
reliable supply of Battery Anode Material," said Michael Grimm, President of Northern's Battery
Materials Group. "By integrating production across two continents, we're building a resilient supply chain
that aligns with Europe's decarbonization goals while offering OEMs a transparent, traceable source of
high-quality anode material."
The French BAM facility will be supplied with graphite concentrate from Northern's Okanjande graphite
mine in Namibia, which is currently on care and maintenance pending financing to restart operations.
The mine contains high-quality graphite suitable for conversion into battery-grade material and can be
brought back online within 18- to 24 months of a final investment decision. Once operational, Okanjande
will have an initial capacity to produce 31,000 tonnes of concentrate annually.
Heightened geopolitical tensions are underscoring the fragile nature of global supply chains for many
critical minerals and graphite is no exception. By developing vertically integrated production from
Namibia to France, Northern is helping the EU to establish a secure critical minerals supply chain.
"This is an important milestone for Northern," said CEO Hugues Jacquemin. "Strategic Project status
provides the tools and support we need to accelerate development, secure long-term financing and
customers, and ensure our facility meets the highest environmental and social standards."
Questions and Answers on the Strategic Projects under the Critical Raw Materials Act
About Northern Graphite
Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture
Exchange listed company that is focused on becoming a world leader in producing natural graphite and
upgrading it into high-value products critical to the green economy, including anode material for lithium-
ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies.
The Company's
mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped,
state-of-the-art laboratory in Frankfurt. The Division is focused on developing advanced anode materials
to improve the cycle life and increase the charging rate of lithium ion batteries and on marketing
Northern's patented Porocarb® product. Porocarb® is a carbon based material that enhances the
performance of both solid state and lithium-ion batteries and is currently being evaluated by leading
global battery manufacturers with very positive results.
Northern's graphite assets include the producing Lac des Iles mine in Quebec where the Company plans
to increase production to meet growing demand from industrial customers and coming demand from
North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek
project in Ontario, the Mousseau Project in Quebec and the fully permitted Okanjande graphite mine in
Namibia.
Okanjande is currently on care and maintenance and represents an opportunity to substantially
increase graphite production at a lower cost and with a shorter time to market than most competing
projects. All projects have "battery quality" graphite and are located close to infrastructure in politically
stable jurisdictions.
For media inquiries contact
Pav Jordan, VP of Communications
Email:
For additional information
Please visit the Company's website at
https://www.northerngraphite.com/home/
, the Company's profile
on
www.sedarplus.ca
our
Social Channels
listed below or contact the Company at (613) 271-2124.
YouTube
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward-looking statements and information are frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this news release include statements
regarding, among others, the Company's proposal to produce and sell BAM and development plans
with respect to the LDI, Okanjande and Bissett Creek projects. All such forward-looking statements are
based on assumptions and analyses made by management based on their experience and
perception of historical trends, current conditions and expected future developments, as well as other
factors they believe are appropriate in the circumstances. However, these statements are subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected including, but not limited to, unexpected changes in laws, rules or
regulations, or their enforcement by applicable authorities; the failure of other parties to perform as
agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of
infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or
results that would justify and support continued studies, development or operations and the inability to
raise required financing. Readers are cautioned not to place undue reliance on forward-looking
information or statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
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
news release.
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