NMG Issues Updated Feasibility Study for its Integrated Phase -2 Ore-to- Active-Anode-Material Operations: the Matawinie Mine and the Bécancour Battery Material Plant
NMG Issues Updated Feasibility Study for its Integrated Phase -2 Ore-to-
Active-Anode-Material Operations: the Matawinie Mine and the Bécancour
Battery Material Plant
• Updated Feasibility Study covering NMG’s Phase-2 Matawinie Mine and the
Bécancour Battery Material Plant for an integrated production of natural graphite
and active anode material within a 150-km radius of Montréal, Québec, Canada.
• Integrated production model refined and updated in light of technological
development, project optimizations, engineering advancement, and updated
economic factors.
• Significant derisking with the adoption of the prevalent purification technology,
aligned with established commercial operations worldwide.
• Updated Feasibility Study indicates an after-tax IRR of 17.5% and NPV of
US$1,053 million with revenue reflective of third-party market projection of NMG’s
offtakes with Panasonic and GM, and for the balance of production.
• Results confirm NMG’s Phase-2 technical and economic viability, enabling the
Company to enter its project financing stage with a view to FID.
• Updated Feasibility Study to be presented to targeted lenders, Anchor Customers
and institutional equity investors to advance and formalize the project financing
and reach FID.
• Upon a positive FID, NMG’s Phase 2 Matawinie Mine and Bécancour Battery
Material Plant could be built and enter commercial production within less than
three years.
MONTRÉAL--(BUSINESS WIRE)--March 25, 2025--Nouveau Monde Graphite Inc. (“NMG”
or the “Company”) (NYSE: NMG, TSX: NOU) issues the results of the Updated Technical
Feasibility Study Report for the Matawinie Mine and Bécancour Battery Material Plant
Integrated Graphite Projects (the “Updated Feasibility Study”) carried out in accordance with the
National Instrument 43-101 (“NI 43-101”). Conducted by BBA Inc. and various specialized
consultants, the Updated Feasibility Study pulled from NMG’s 2022 Feasibility Study and
updated key parameters in light of technological development, project optimizations, engineering
advancement, and updated economic factors.
NMG’s integrated production model, covering the full value chain from mining to advanced
processing, is designed to cater to the North American electric vehicle (“EV”) and energy
storage market with a turnkey, local source of natural graphite active anode material. NMG has
signed offtake agreements 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), (together, NMG’s “Anchor Customers”) covering more than 80% of the
Company’s planned Phase-2 production of active anode material.
Results of the Updated Feasibility Study indicate that NMG’s Phase 2 is technically feasible as
well as economically viable. Upon a positive final investment decision (“FID”), the Matawinie
Mine and Bécancour Battery Material Plant could be built and enter commercial production
within less than three years. Considering that its project financing, nearly 100% of its revenue, a
significant amount of its capital expenditures and interest expenses are expected to be
denominated in U.S. dollars, the Company has aligned the Updated Feasibility Study financial
metrics with this currency, enabling a better representation of the underlying economic realities
of the cash flows associated with this integrated project and the associated capital structure.
Arne H Frandsen, Chair of NMG, said: “The underlying driver for NMG’s ore-to-battery-
material business is undeniable. While inflation, geopolitics, and trade dynamics create
turbulences, we are focused on delivering on our mission to responsibly produce carbon-neutral
advanced graphite materials to power the energy transition. Today’s results demonstrate the
attractive operation that we have engineered within a stable jurisdiction and underpinned by
high ESG principles to help North American manufacturers secure and reshore their supply
chain.”
Eric Desaulniers, Founder, President, and CEO of NMG, declared: “We have been hard at work
over the past months to examine, challenge, and refine every component of our future
operations. The input of our Anchor Customers coupled with advanced precision through
engineering, equipment specifications, procurement, and construction planning have enabled us
to optimize our projected Phase-2 commercial production. We are confident that our plans will
deliver a performing and competitive operation, supplying highly specialized products to our
Anchor Customers. I am eager to present the results to our financial partners in view of FID.”
Integrated Production, From Ore to Battery Materials
Leveraging the Matawinie Mine production as feedstock for the Bécancour Battery Material
Plant, NMG has developed an integrated material flowsheet to maximize the production of high-
value active anode material destined to the battery market segments. Hence, the two facilities are
set to operate in tandem to maximize operational efficiencies and margins along the value chain.
Table 1: Economic Highlights of NMG’s Integrated Phase-2 Graphite Operations
ECONOMIC HIGHLIGHTS Matawinie Mine Bécancour
Battery
Material Plant
INTEGRATED
NMG MODEL
Pre-tax NPV (8% discount rate) US$402M US$926M US$1,328M
After-tax NPV (8% discount rate) US$252M US$801M US$1,053M
Pre-tax IRR 17.7% 17.1% 17.3%
After-tax IRR 16.0% 18.0% 17.5%
Pre-tax payback 5.5 years 6.0 years 5.8 years
After-tax payback 5.2 years 5.0 years 5.0 years
Initial CAPEX US$415M US$911M US$1,326M
Annual OPEX US$44M US$124M US$168M
Costs reflect steady-state production, exclude the initial ramp-up period, and are based on normalized operations
The after-tax IRR exceeds the pre-tax IRR, driven by the favorable impact of eligible tax credits, such as the
Canadian Clean Technology Manufacturing Investment Tax Credit, Zero-Emission Technology Manufacturing
(ZETM) tax measures, provincial tax holidays for large investment projects and other available incentives.
Both greenfield projects, the Matawinie Mine and Bécancour Battery Material Plant were costed
using test work results, Phase-1 operations, supplier quotations and consultants’ in-house
databases. NMG and its consulting firms have refined design, engineering, and construction
parameters to enable cost optimization. Furthermore, reserved blocks of Québec’s affordable
clean hydropower underpins the Company’s operations, economics structure and carbon-
neutrality commitment.
NMG’s integrated business model, with a secured feedstock, close-by operations at the western
market’s doorstep and operational flexibility to adapt production based on demand, represents a
stable and cost-effective structure in today’s everchanging macroeconomics.
The Company’s advanced processing capacities at the future Phase-2 Bécancour Battery
Material Plant enable tailored production to unique customer specifications. The majority of the
future Matawinie Mine production is set to be refined into active anode material, while a portion
of jumbo and large high-purity flake graphite is set to be directed to specialty markets, with some
flexibility in the allocation of volumes.
The Updated Feasibility Study incorporates NMG’s supply agreements with Panasonic Energy,
GM and Traxys, as well as market studies by Benchmark Mineral Intelligence, a recognized,
regulated and independent price reporting agency. NMG’s previously announced offtake
agreements, which are subject to completion of conditions precedent and the project-related
agreements, with its Anchor Customers provide visibility, pricing confidence, and reduced
commercialization costs.
Table 2: Commercialization Plans for NMG’s Integrated Phase-2 Production
Products Volume1 Average Price
Flake graphite 14,720 tpa US$1,469/tonne
Active anode material
44,100 tpa US$9,346/tonne (Y1 to Y7)
US$10,402/tonne (Y8 to Y25)
US$10,106/tonne (LOM average)
Micronized by-products 43,334 tpa US$400/tonne
1. Volumes reflect steady-state production, exclude the initial ramp-up period, and are based on normalized
operations.
Matawinie Mine
The Matawinie Mine remains largely the same as reflected in NMG’s previous technical report.
The Updated Feasibility Study considers revised key parameters and costs, leveraging
advancement in the project since the 2022 report, namely through detailed engineering,
preparatory work at the site, key contracts awarded and/or negotiated, procurement planning,
construction preparation, as well as optimization of operations between the two Phase-2
facilities.
The Matawinie graphite property, in which the Company owns a 100% interest, is located
approximately 120 km as the crow flies north of Montréal, Québec, Canada, in Saint-Michel-des-
Saints. The Tony Claim Block, part of the property, is composed of 159 exclusive exploration
rights totaling 8,266 hectares. Since the deposit discovery, a comprehensive exploration program
identified crystalline flake graphite mineralization, ultimately leading to the definition of Mineral
Resources and Mineral Reserves (as presented below).
The Mineral Resources for the West Zone of the mining property is based on a total of 8,274
assay intervals collected from 27,888 m of core drilling and three surface trenches providing 207
channel samples. Proper quality control measures, including the insertion of duplicate, blank, and
standard samples, were used throughout the exploration programs and returned within acceptable
limits.
Table 3: Current Pit-Constrained Mineral Resource Estimate for the West Zone
Mineral Resources Category1, 2
Current Resources (March 25, 2025)5, 6, 7
Tonnage (Mt) C(g) Grade (%)3 Contained
Graphite (Mt)
Measured 28.5 4.28 1.22
Indicated 101.8 4.26 4.33
Measured + Indicated 130.3 4.26 5.55
Inferred4 23.0 4.28 0.98
1. The Mineral Resources provided in this table were estimated by Yann Camus P.Eng., Qualified Person of
SGS Geological Services, using current Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”)
Standards on Mineral Resources and Reserves, Definitions and Guidelines.
2. Mineral Resources that are not Mineral Reserves have not demonstrated economic viability. Additional
trenching and/or drilling will be required to convert Inferred and Indicated Mineral Resources to
Measured Mineral Resources. There is no certainty that any part of a Mineral Resource will ever be
converted into Reserves.
3. All analyses used for the Resource Estimates were performed by ALS Minerals Laboratories and
delivered as % C(g), internal analytical code C-IR18.
4. Inferred Mineral Resources represent material that is considered too speculative to be included in
economic evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral
Resources to Indicated or Measured Mineral Resources. It cannot be assumed that all or any part of the
Inferred Resources will ever be upgraded to a higher Resource category.
5. Current Resources effective March 25, 2025.
6. Mineral Resources are stated at a cut-off grade of 1.78% C(g).
7. Quality control standards used for these Mineral Resources returned within acceptable limits, no
significant bias was found.
8.
Table 4: Matawinie Mineral Reserve Estimate for the West Zone
Category Tonnage (Mt) C(g) Grade (%) Contained
Graphite (Mt)
Proven 17.3 4.16 0.7
Probable 44.3 4.26 1.9
Proven & Probable 61.7 4.23 2.6
1. The Qualified Person for the Mineral Reserve Estimate is Jeffrey Cassoff, P.Eng., of BBA Inc.
2. The effective date of the estimate is March 25, 2025.
3. Mineral Reserves were estimated using a graphite concentrate selling price of US$1,334/t, and consider a
2% royalty, and selling costs of US$34.23/t. An average grade of 97% C(t) was considered for the
graphite concentrate.
4. A metallurgical recovery of 93% was used.
5. A cut-off grade of 2.20% C(g) was used.
6. The strip ratio for the open pit is 1.16 to 1.
7. The Mineral Reserves are inclusive of mining dilution and ore loss.
8. The reference point for the Mineral Reserves is the primary crusher.
10.
9. Totals may not add due to rounding.
The future Matawinie Mine site is easily accessible via the dedicated access road that NMG built
to connect to the local highway and is close to key infrastructure, including paved roads and
high-voltage power lines, and the regional community, which provides a pool of workers and
contractors. The project is in proximity to the Montréal metropolitan area, which also has skilled
labor and many key suppliers.
Since 2015, multiple metallurgical process development and optimization programs have been
carried out on samples from the Matawinie graphite mineralization zones. The programs focused
on the development of a flowsheet that maximizes concentrate grade and recovery, while
minimizing flake degradation. NMG has been operating the Phase-1 Matawinie Demonstration
Plant since 2018 to help de-risking the process and produce graphite concentrate samples for
customer evaluation and processing technological development. All components incorporated in
the Matawinie Mine process are mature technologies.
With a 25-year life of mine (“LOM”), the Matawinie Mine will leverage the West Zone deposit
for a nominal production of 105,882 tonnes per annum (“tpa”) of graphite concentrate. The
deposit will be mined using conventional open-pit mining methods consisting of drilling,
blasting, loading, and hauling. To maximize the NPV, mining phases have been designed and
incorporated into the mining plan to defer waste rock stripping and provide a balanced blended
feed grade for the on-site concentrator over the LOM. Through crushing, milling, flotation,
cleaning, and drying, the ore will be concentrated to attain 97.5% C(t).
Tailings produced at the concentrator will be segregated after the desulphurization circuit into
low-sulphur content of non-acid generating (“NAG”) tailings and a sulphide concentrate of
potentially-acid generating (“PAG”) tailings. Both NAG and PAG will be filtered to reduce
water content and then co-disposed with waste rock into deposition cells on a lined platform. The
co-deposition storage facility will be located at surface and as of Year 7, tailings and waste rocks
will also be placed in the mined-out areas of the open pit. The deposit will be mined from south
to north to ensure adequate space is available for in-pit backfilling.
Table 5: Operational and Economic Highlights of the Matawinie Mine
Parameters
LOM 25 years
Nominal annual processing rate 2.56 M tonnes
Stripping ratio (LOM) 1.16:1
Average grade (LOM) 4.23% C(g)
Average mill recovery 93%
Nominal annual graphite concentrate production 105,882 tonnes
Finished product purity 97.5% C(t)
CAPEX US$415M
Annual OPEX US$44M
OPEX cost per tonne of graphite concentrate US$419/tonne
Costs reflect steady-state production, exclude the initial ramp-up period, and are based on normalized operations.
A ministerial decree authorizing the Matawinie Mine (Decree # 47-2021) was granted by the
Québec Government and all permits and authorizations pertaining to exploration, geotechnical,
hydrogeological, and early preparatory works to date have been obtained.
Early works at the Matawinie Mine have included thus far tree clearing, construction of the
nearly 8-km access road, preparation of the industrial pad, and civil works for environmental
infrastructure. The site is considered concrete-ready for the start of construction upon a positive
FID, with a number of key contracts having been awarded, including process equipment, the
dedicated powerline and the electrical substation.
Bécancour Battery Material Plant
The Phase-2 Bécancour Battery Material Plant is planned as a comprehensive advanced
processing platform set to receive Matawinie graphite concentrate production for refining and
commercial distribution. Plans for this facility have been substantially revised using inputs from
NMG’s Phase-1 operations, technology development, and engineering.
Approximately 150 km northeast of Montréal on the Saint Lawrence River, in the heart of
Québec’s “battery valley”, NMG’s Bécancour site is located adjacent to its Phase-1 purification
plant, within an established industrial park. The site provides robust local infrastructure with a
direct supply of chemicals from nearby producers, affordable hydroelectricity, multimodal
logistics (international deep-sea port, railway, and expressway) and a regional pool of skilled
workforce.
The future Bécancour Battery Material Plant will regroup shaping, purification and coating
capacities to produce battery-grade active anode material.
The shaping process, essentially a mechanical transformation, reduces the flake size
(micronization) and rounds graphite material (spheronization) to increase the density of the
spherical graphite for battery use. At its Phase-1 facility, NMG has already assimilated and
refined this process, and tested different equipment to inform the engineering of the Phase-2
plant. Shaping generates a micronized graphite by-product to be sold.
Purification removes impurities from the spheronized graphite to bring the product to ≥99.90%
carbon content. Following testing at its Phase-1 Purification Plant plus third-party sites, trade-off
analyses and process optimization, NMG has selected the prevalent chemical purification
technology for its future Phase-2 Bécancour Battery Material Plant. Commercial operations
worldwide have demonstrated the performance and efficiency of this technology in line with
battery manufacturers’ requirements; thus, reducing the technological risks for the project.
Continued optimization of the process to refine environmental performance, operational, and
financial parameters along with sample production are being carried out at partnering facilities to
support detailed engineering and commercialization efforts.
The coating aims at enhancing the electrochemical performance of active anode material in
lithium-ion batteries. To establish the proper technology, precursor type and process parameters,
NMG performed different studies and tests at its Phase-1 facility, in independent laboratories and
at suppliers’ test facilities. Most technologies selected are being widely used in the industry,
further reducing technological risks.
Table 6: Operational and Economic Highlights of the Bécancour Battery Material Plant
Parameters
Annual active anode material production 44,100 tonnes
Finished product purity ≥99.90% C(t)
CAPEX US$911M
Annual OPEX US$124M
OPEX cost per tonne of active anode material US$2,810/tonne
Annual micronized graphite by-product production 43,334 tpa
Costs reflect steady-state production, exclude the initial ramp-up period, and are based on normalized operations.
In preparation for the launch of construction, preliminary works – tree clearing, on-site road
construction, site grading – were carried out in 2024.
Responsible Production & ESG
In line with its environmental, social and governance (“ESG”) practices, NMG plans to build and
operate an integrated production that promotes stewardship throughout its value chain. The
Company strives to prevent and limit potential impacts through the introduction of responsible
practices including co-disposal dry stacking of tailings, progressive reclamation of the Matawinie
site, strategy for the electrification of its operations, water recycling, greenhouse gas reduction
measures, and active stakeholder engagement at every stage of project development. NMG has
signed a collaboration and benefit-sharing agreement with the Municipality of Saint-Michel-des-
Saints as well as an impact and benefit agreement with the Atikamekw First Nation of Manawan.
NMG is committed to pursuing its efforts to improve its practices, technologies, products, and
procurement as it advances the detailed engineering, construction, commissioning, and launch of
commercial production. The Company strives to maximize opportunities for Indigenous and
local workers, contractors, and communities throughout the project execution.
Next Steps and Quality Assurance
The confirmation of NMG’s Phase-2 viability through the Updated Feasibility Study enables the
Company to enter its project financing stage with a view to reach FID.
There is no certainty that the economic forecasts on which the Updated Feasibility Study is based
will be realized. There are a number of risks and uncertainties identifiable to any new project and
usually cover the mineralization, process, financial, environment and permitting aspects.
Following an analysis of the major risks to the projects, a P50 management risk reserve of
US$122M is recommended. This reserve is not included in the capital cost estimate but is within
the range of the financial sensitivity analysis of the capital cost. The top risks are: 1) The
optimization of the water treatment process technology; 2) The efficient integration of key Asian
suppliers into the project detailed engineering and construction; and 3) The qualification by the
customers of the product from the Matawinie Mine and the Bécancour Battery Material Plant.
A sensitivity analysis reveals that the viability of the Projects will not be significantly vulnerable
to variations in capital and operating costs within the margins of error associated with the
Updated Feasibility Study estimates. However, the viability of the Projects remains more
vulnerable to the USD/CAD exchange rate and the larger uncertainty in future market prices.
Scientific and technical information presented in this press release was reviewed and approved
by André Allaire, P.Eng. (BBA), Yann Camus, P.Eng. (SGS Geological Services) and Jeffrey
Cassoff, P.Eng. (BBA), Qualified Persons as defined under NI 43-101.
The Updated Feasibility Study will be filed on SEDAR+ at www.sedarplus.ca, EDGAR at
www.sec.gov and on the Company's website at www.NMG.com within 45 days of this press
release. Readers are encouraged to read the Study in its entirety, including all qualifications,
assumptions and exclusions that relate to the details summarized in this press release. The Study
is intended to be read as a whole, and sections should not be read or relied upon out of context.
About Nouveau Monde Graphite
Nouveau Monde Graphite is an integrated company developing responsible mining and
advanced processing 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 recognized 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 advanced materials while promoting sustainability and supply chain
traceability. www.NMG.com
Subscribe to our news feed: https://bit.ly/3UDrY3X
Cautionary Note Regarding Forward-Looking Information
This press release contains “forward-looking information” and “forward-looking statements”
within the meaning of applicable securities legislation (collectively, “forward-looking
statements”), including, but not limited to, statements relating to future financial or operating
events or future performance of the Company, and reflecting management’s expectations and
assumptions regarding the Company’s growth, results, performance, and business prospects and
opportunities. Such forward-looking statements reflect management’s current beliefs and are
based on information currently available to it. In some cases, forward-looking statements can be
identified by words such as “aim”, “anticipate”, “aspire”, “attempt”, “believe”, “budget”,
“could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “mission”, “plan”, “potential”,
“predict”, “progress”, “outlook”, “schedule”, “should”, “study”, “target”, “will”, “would”
or the negative of these terms or other similar expressions concerning matters that are not
historical facts. In particular, forward-looking statements include, but are not limited to, the
Company’s ability to develop a fully integrated ore-to-battery-material source of graphite-based
active anode material in the Province of Québec, to become a strategic supplier to the world’s
leading lithium-ion battery and EV manufacturers, to build the Matawinie Mine and Bécancour
Battery Material Plant and enter commercial production within the timeline, to provide high-