NMG Provides a Quarterly Update on the Advancement of its Phase-2 North American Graphite Production
NMG Provides a Quarterly Update on the Advancement of its Phase-2 North
American Graphite Production
Multi-year offtake agreements and term sheet arrangements, including take-or-pay
provisions, with tier-1 commercial partners to supply and market NMG’s Phase-2
future production to strategic industries in North America, Europe and allied
countries, providing market diversification and reducing project risks.
Matawinie Mine project financing process progressing well with due diligence
exercises nearing completion and long-form term sheet negotiations ongoing ahead
of respective lenders’ credit committees.
Progress on Phase-2 Matawinie Mine procurement through finalization of supply
agreements for equipment packages, negotiation of contracts with key suppliers,
and the launch of tenders for the construction phase.
Segregated and updated Feasibility Study results covering the Phase-2 Matawinie
Mine in light of NMG’s new commercial plans potentially covering almost 100% of
the future production.
Advancement in engineering, technological development, and project optimizations
for an initial capacity of the Phase-2 Bécancour Battery Material Plant.
Recruitment of Arnaud Quatannens as Senior Director of Engineering, Battery
Materials Plant to support the technical development of NMG’s processing
activities.
Twelve-month rolling total recordable injury frequency rate (“TRIFR”) of 3.77 at
the Company’s facilities (severity rate at 1.88) and 0 for contractors onsite; and no
major environmental incidents.
Period-end cash position of $61.7 million.
MONTRÉAL--(BUSINESS WIRE)--November 12, 2025--Nouveau Monde Graphite Inc.
(“NMG” or the “Company”) (NYSE: NMG, TSX: NOU) provides an update on its project
development, commercialization and financing advancements in view of reaching a final
investment decision (“FID”) for its natural graphite production destined to North American,
European and G7-allied markets. With potentially 100% of the future Phase-2 Matawinie Mine
flake graphite production reserved, the Company is progressing its project development through
engineering, procurement, and financing activities.
Eric Desaulniers, Founder, President, and CEO of NMG, stated: “Thanks to our commercial
partnerships we are tapping into industrial know-how, developed supply chain footprints, and
strong diplomatic ties to broaden market access for the flake graphite from our Matawinie Mine.
Our team is now actively engaged with lenders, strategic investors, and customers to line up
financing efforts and term negotiations in view of FID.”
Renewed Commercial Strategy
Through recently announced offtake agreements and term sheet arrangements, NMG has
expanded its commercial approach to serve growth industries in the Western World, including
the energy, defense, technology, and manufacturing sectors. This multimarket diversification
provides NMG with the opportunity to maximize high-margin products in the Company’s
portfolio and establish itself within North American, European and allied countries’ strategic
supply chains.
NMG and Panasonic Energy Co., Ltd. (“Panasonic Energy”), a wholly owned subsidiary of
Panasonic Holdings Corporation (“Panasonic”) (TYO: 6752) have revised their commercial
agreement (the “2025 Panasonic Energy Binding Offtake Agreement”) with the objective of
advancing the production of 13,000 tonnes per annum (“tpa”) of active anode material via
NMG’s Phase-2 integrated value chain. Approximately 25,000 tpa of graphite concentrate is
being reserved from the future Phase-2 Matawinie Mine production to execute this Panasonic
Energy volume. The 2025 Panasonic Energy Binding Offtake Agreement contains conditions
precedent and qualification requirements of the product and the commercial operations.
NMG has signed a binding term sheet with the Government of Canada for a seven-year offtake
of 30,000 tpa of graphite concentrate reserved for Canada and allied countries and entities for
strategic applications and commercialization in domestic markets. Through this commitment, the
Government of Canada is set to secure 15,000 tpa of graphite concentrate on a take-or-pay basis
at a fixed North American market price and reserves 15,000 tpa for allied countries or entities,
for NMG to formalize via offtake agreement(s) on similar terms. The term sheet offtake
framework is conditional upon the Government of Canada receiving necessary approvals and
completing its appropriation process, the parties executing definitive agreements including
entering into at least one additional commitment from an allied countries or entities on
substantially the same terms as the term sheet to purchase the reserved 15,000 tpa. A marketing
term sheet in relation to the Government of Canada’s committed volume allows NMG to market
their volume and includes a 50-50 profit split above the agreed upon fixed price net of any losses
that the Government of Canada may have incurred and any marketing fees paid to NMG.
NMG and Traxys North America LLC (“Traxys”) have updated their commercial and marketing
agreement (“2025 Traxys Binding Offtake and Marketing Agreement”) to secure up to 20,000
tpa of graphite concentrate offtake from the Phase-2 Matawinie Mine for the refractory market in
North America and Europe, which is subject to Traxys’ Board approval. With an initial seven-
year term, the agreement includes sales pricing based on market indices with 10,000 tpa of firm
take-or-pay volume.
NMG is in active negotiations with an established anode manufacturer (the “Manufacturer”) to
secure up to 30,000 tpa of graphite concentrate from the Phase-2 Matawinie Mine over an initial
six-year period. The take-or-pay portion of this volume, expected to represent approximately
15,000 tpa with sales pricing based on market indices with a floor price, is intended to serve as
feedstock for active anode material production to potentially support General Motors Holdings
LLC (“GM”), a wholly owned subsidiary of General Motors Co. (NYSE: GM), and other
customers.
There can be no assurance that NMG will be able to conclude the definitive agreements with the
Government of Canada and/or allied countries and entities, and/or with the Manufacturer, that
the Manufacturer and GM will be able to conclude a definitive agreement, or that NMG will be
able to meet the conditions precedent of the 2025 Panasonic Energy Binding Offtake Agreement,
the definitive agreements once executed or the conditions precedent of any or all of the offtake
and marketing agreements mentioned above.
Project Development and Path to FID
NMG continues to advance its Phase-2 Matawinie Mine and Phase-2 Bécancour Battery Material
Plant via samples production and process optimization at its Phase-1 and third-party facilities,
engineering, and construction preparation.
During the period, NMG completed the construction of key environmental infrastructure at the
demonstration mining site and initiated new ore extraction campaigns to produce additional flake
concentrate volumes at the Phase-1 Demonstration Plant. These volumes will enable
supplementary product sampling and qualification for battery and strategic market segments.
Procurement progresses for the Phase-2 Matawinie Mine through technical reviews and
finalization of supply agreements for important equipment packages, alongside the negotiation of
contracts with key suppliers, and the launch of civil, concrete, and steel tenders for the
construction phase.
In parallel, NMG is assessing the commercial and technical feasibility of an initial capacity in the
Phase-2 Bécancour Battery Material Plant, with a view to efficiently fulfilling its committed
volumes for Panasonic Energy.
The project financing process has significantly advanced in recent months. The due diligence
processes are well advanced, supported by specialized advisory firms, which are proceeding
concurrently to assess the corporate, technical, market, and ESG components of NMG’s planned
Phase-2 operations and to guide financial stakeholders’ risk assessment. The due diligence
outcomes will feed into the structuring of legal documentation and a project debt package ahead
of investment committee reviews. This workstream will be finalized upon having signed
definitive agreements with offtakers. Negotiations on a long-form term sheet are ongoing ahead
of the lenders’ respective investment committees to seek credit approval in the coming months.
In light of its renewed commercial strategy, NMG intends to confirm the support of its strategic
investors and targeted lenders toward the project financing, either for a combined FID
encompassing the Phase-2 Matawinie Mine and the Phase-2 Bécancour Battery Material Plant,
or for a sequenced FID starting with the Phase-2 Matawinie Mine followed by the Phase-2
Bécancour Battery Material Plant.
Matawinie Mine Feasibility Study Results
Considering the contemplated potential sequenced FID, NMG tasked BBA Inc. and various
specialized consultants with the preparation of a segregated and updated feasibility study for the
Phase-2 Matawinie Mine (“NI 43-101 Technical Report: 2025 Feasibility Study for the
Matawinie Graphite Mine”) in accordance with National Instrument 43-101 (“NI 43-101”).
With a project globally unchanged, the NI 43-101 Technical Report: 2025 Feasibility Study for
the Matawinie Graphite Mine refined some financial parameters to reflect the commercial
agreements and latest CAPEX projections in line with ongoing procurement activities. Results
continue to demonstrate technical and economic viability of the Phase-2 Matawinie Mine.
Table 1: Operational and Economic Highlights of the Matawinie Mine
Parameters
OPERATIONAL
Life of Mine (“LOM”) 25 years
Nominal annual processing rate 2.56 M tonnes
Stripping ratio (LOM) 1.16:1
Average grade (LOM) 4.23% Graphitic Carbon (“C(g)”)
Average mill recovery 93%
Nominal annual graphite concentrate production 105,882 tonnes
Finished product purity 97.5% C(t)
ECONOMIC
CAPEX US$421M
Annual OPEX US$44M
OPEX cost per tonne of graphite concentrate US$419/tonne
Pre-tax NPV (8% discount rate) US$379M
After-tax NPV (8% discount rate) US$238M
Pre-tax IRR 17.3%
After-tax IRR 15.8%
Pre-tax payback 5.7 years
After-tax payback 5.3 years
Costs reflect steady-state production, exclude the initial ramp-up period, and are based on normalized operations.
The after-tax IRR includes favorable impact of eligible tax credits, such as the Canadian Clean Technology
Manufacturing Investment Tax Credit tax measures, provincial tax holidays for large investment projects and other
available incentives.
Table 2: Current Pit-Constrained Mineral Resource Estimate for the West Zone
Mineral Resources Category1, 2
Current Resources (November 12, 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 November 12, 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.
Table 3: 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 November 12, 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.
9. Totals may not add due to rounding.
There is no certainty that the economic forecasts on which the NI 43-101 Technical Report: 2025
Feasibility Study for the Matawinie Graphite Mine 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 project, a P50 management risk reserve of $21M 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) construction productivity differing from baseline estimate;
2) longer-than-expected specialized equipment delivery times; and 3) contractor bids differing
from the budget.
A sensitivity analysis reveals that the viability of the Phase-2 Matawinie Mine will not be
significantly vulnerable to variations in capital and operating costs within the margins of error
associated with the NI 43-101 Technical Report: 2025 Feasibility Study for the Matawinie
Graphite Mine estimates. However, the viability of the Phase-2 Matawinie Mine remains more
vulnerable to the USD/CAD exchange rate and the larger uncertainty in future market prices.
The 43-101 Technical Report: 2025 Feasibility Study for the Matawinie Graphite Mine 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.
Market Perspectives
FOB China prices for natural graphite and active anode materials have slightly lowered
(Benchmark Mineral Intelligence, October 2025) during the period due to weak demand from
refractory and battery sectors having sufficient inventory for current production. Preliminary
duties imposed by the U.S. Department of Commerce on Chinese graphite imports have added
meaningful extra costs for battery manufacturers, reinforcing the push for a North American
supply chain decoupling.
The EV market segment reached a record monthly high at the end of the period, with 2.1 million
units sold worldwide in September 2025 (RhoMotion, October 2025). Global year-to-date
growth accounts for +26%, with the U.S. sitting at +18%, China at +24%, and Europe rising to
+32% while emerging economies such as Vietnam, Thailand and Brazil see very rapid growth
(BloombergNEF, August 2025). The looming end of EV incentives and competitive model
offerings continue to stimulate sales despite some policy changes. Analysts forecast that one in
four new passenger cars sold globally in 2025 will be electric, while internal combustion engine
sales are declining rapidly (BloombergNEF, August 2025).
Global energy storage installations are poised to reach another record high in 2025 – rising 23%
year over year – with China and the United States leading growth despite recent policy and trade
challenges (BloombergNEF, October 2025). Strong expansion is also expected in Germany, the
UK, Australia, Canada, Saudi Arabia, and across Sub-Saharan Africa, supported by favorable
policies, utility procurement, and evolving power market dynamics. Overall, global annual
storage deployments are projected to rise, setting a new all-time high.
The global pipeline of battery production continues its gradual scale up with over 9,500 GWh
planned by 2030 (Benchmark, October 2025).
With current trade and geopolitical dynamics, jurisdictions are seeking to secure access to critical
minerals and refining capacities (International Energy Agency, September 2025).
G7 member countries adopted a Critical Minerals Action Plan aimed at strengthening and
diversifying global supply chains for critical minerals, promoting transparent, rule-based
markets, attracting new investment, and lessening non-competitive practices. Via its
agreement with NMG, the Government of Canada intends to secure graphite for its
domestic markets and stockpiling objectives, plus support allied nations and entities in
building resilient and reliable supply chains.
Canada and Germany signed a joint declaration to deepen cooperation in critical mineral
supply chains with commitments to investments.
The U.S. agreed to framework agreements with Australia, Japan, Thailand and Malaysia
for securing supply in the mining and processing of critical minerals.
Canada is deploying a $5 billion “Buy Canada” initiative to invest in resilient supply
chains and position the country as a trusted global partner in advanced manufacturing and
critical resources.
The 2025 federal budget provides for $2 billion over five years to create the Critical
Minerals Sovereign Fund, plus resources for the Major Projects Office to fast-track
critical minerals extraction; envelopes targeting the development of innovative critical
minerals processing technologies; and $25 billion by 2030 to expand Canada’s exports
and trade development activities in sectors of strategic importance for Canada, including
in critical minerals, energy, clean technology, infrastructure, and defense.
China has announced, then temporarily paused new restrictions on the export of batteries,
cathode and anode materials, rare earths and specialized equipment, raising instability
and unreliability in the supply chain.
Corporate
The Company recruited Arnaud Quatannens to the position of Senior Director of Engineering,
Battery Materials Plant. With over 20 years of international experience across the aluminum,
aerospace, and battery industries, Mr. Quatannens has led complex engineering to large-scale
operations. He joins NMG with a deep understanding of customer needs and market expectations
in the battery sector to help scale industrial processes and bring the Phase-2 Bécancour Battery
Material Plant to commercial operations.
For the twelve-month rolling period ended September 30, 2025, NMG reported a total recordable
injury frequency rate of 3.77 and severity rate of 1.88 at the Company’s facilities, and 0 at
contractors’ worksites. There were no environmental incidents during this period.
At the end of the period, the Company had a cash position of $61.7 million.
Scientific and technical information presented in this press release was reviewed and approved
by Jean L’Heureux, P.Eng. (BBA), Yann Camus, P.Eng. (SGS Geological Services) and Jeffrey
Cassoff, P.Eng. (BBA), Qualified Persons as defined under NI 43-101.
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 advanced
graphite materials. The Company is developing in Québec, Canada, a fully integrated ore-to-
processed-graphite value chain to serve tomorrow’s industries in energy, defense, technology,
and manufacturing. With recognized ESG standards and structuring partnerships with major
customers, NMG is set to become a strategic supplier of advanced materials to leading
specialized manufacturers while promoting sustainability, innovation, and supply chain
traceability. www.NMG.com
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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 events or future financial
or operating performance of the Company and reflect 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. These forward-looking statements include, but are
not limited to, the Company’s ability to conclude definitive agreements with the Government of
Canada, allied countries or other entities, the Manufacturer, and other offtakers, Traxys’ ability
to obtain the approval of the 2025 Traxys Binding Offtake and Marketing Agreement, the ability
to secure its project financing and to secure a positive combined or sequenced FID for the
Phase-2 Matawinie Mine and or the Phase-2 Bécancour Battery Material Plant (including the
initial capacity for the Phase-2 Bécancour Battery Material Plant to aligned with committed
volumes), the commercial and technical feasibility of an initial reduction in the Phase-2
Bécancour Battery Material Plant production capacity, the ability of the Corporation to meet the
conditions precedent of the definitive agreements once executed with the Government of Canada,
the Manufacturer, and other offtakers by the dates to be specified in those agreement or the
conditions precedent of the 2025 Panasonic Energy Binding Offtake Agreement by the dates
specified in the agreements, the conclusion of a binding agreement between GM and the
Manufacturer and the commercialization of the remainder of the volume by NMG and the
Manufacturer to a list of lithium-ion battery customers, the ability to complete the long-form
term sheet and the results of the negotiations with the Company’s lender, the development a fully
integrated ore-to-battery-material source of graphite-based active anode material in the
Province of Québec, including the possibility of sequencing the financing in stages, the ability to
explore and secure various financing and commercial scenarios to lessen risk exposure and
facilitate its market entry, the completion of the Phase-2 Matawinie Mine and Bécancour Battery
Material Plant, the results of the NI 43-101 Technical Report: 2025 Feasibility Study for the
Matawinie Graphite Mine and any other feasibility study and preliminary economic assessments
and any information as to future plans and outlook for the Corporation are or involve forward
looking-statements, and the expected 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.
Forward-looking statements are 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 are not guarantees of future performance and may prove to be
incorrect. Moreover, these forward-looking statements are based upon various underlying
factors and assumptions, including 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 satisfy the due diligence
processes of the stakeholders, 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