NMG Provides Update on Advancement of its Phase-2 Projects and Market Conditions
NMG Provides Update on Advancement of its Phase-2 Projects and Market
Conditions
Active work to align engineering, construction, and procurement preparation with
project financing activities to reach FID and launch construction of the Phase-2
Matawinie Mine.
Focus on advancing engineering of the Phase-2 Bécancour Battery Material Plant
with the support of specialized Asian firms and partnering facilities for large-scale
testing, in view of reaching FID.
Continued engagement with customers, potential lenders, and targeted institutional
equity investors to advance project financing requirements and reach FID on the
Phase-2 Matawinie Mine and the Phase-2 Bécancour Battery Material Plant, subject
to their respective technical, commercial and financing parameters.
Preliminary results of the U.S. Department of Commerce’s investigation of Chinese
active anode material bring combined duties on graphite-based materials of up to
160%, thus improving the competitiveness of North American producers.
EV adoption remains strong globally (+28%), while energy storage emerges as the
next major growth driver, pushed by rising AI/data center power demand.
Twelve-month rolling TRIFR rate of 2.82 at the Company’s facilities (severity rate
at 2.82) and 0 for contractors onsite; and no major environmental incidents.
Period-end cash position of $73.5 million.
MONTRÉAL--(BUSINESS WIRE)--August 15, 2025--Nouveau Monde Graphite Inc. (“NMG”
or the “Company”) (NYSE: NMG, TSX: NOU) is reporting continued progress in advancing its
Phase-2 Matawinie Mine and Phase-2 Bécancour Battery Material Plant toward reaching a final
investment decision (“FID”) thanks to technical project development, active financing activities,
and commercial engagement with customers. Current trade and geopolitical dynamics create a
changing environment for NMG’s development, with both opportunities and challenges; hence,
the Company is exploring various financing and commercial scenarios to lessen risk exposure
and facilitate its market entry.
Eric Desaulniers, Founder, President, and CEO of NMG, declared: “Resource nationalism,
tariffs, policy headwinds, and shifting global alliances are creating uncertainty in global supply
chains and investment planning. Nevertheless, we remain centered on our mission to develop a
responsible and resilient North American graphite value chain for the battery sector to help meet
the expansion of the electric vehicle (“EV”) and energy storage markets. We are refining our
execution plan to capitalize on positive political and commercial interests, while reducing
vulnerabilities associated with uncertainties.”
Advancement Toward FID: Project & Financing Update
Since issuing the NI 43-101 Updated Technical Feasibility Study Report for the Matawinie Mine
and Bécancour Battery Material Plant Integrated Graphite Projects (the “Updated Feasibility
Study”), NMG has pursued the development of the Phase-2 Matawinie Mine in preparation for
FID. Detailed engineering, negotiation of contracts with key suppliers, preparation of call for
tenders for construction, value engineering, electrification planning, and schedule optimization
are ongoing to advance the project. The Company has also initiated work for key environmental
infrastructure at the demonstration mining site in view of additional flake production at the
Phase-1 Demonstration Plant.
In parallel, NMG is actively focusing on advancing engineering of the Phase-2 Bécancour
Battery Material Plant to optimize processing technologies and refine environmental,
operational, and financial parameters, in view of reaching FID. Engineering is being supported
by specialized Asian firms with expertise in the graphite and anode material industry. Large-
scale testing and sample production are being planned at partnering facilities to inform
engineering and commercialization efforts.
The Company is working with its Anchor Customers and other potential tier-1 customers toward
bankable offtake agreements paired with strategic investments to bring NMG’s Phase-2
Matawinie Mine and Phase-2 Bécancour Battery Material Plant to FID, subject to their
respective technical, commercial and financing parameters. The Company is exploring various
financing and commercial scenarios to lessen risk exposure in light of current geopolitical
conditions, including the possibility of sequencing financing stages.
Financing activities continue to progress via engagement with its customers, potential lenders,
and targeted institutional equity investors with a view to advancing key requirements. To date,
the Company has received letters of interest toward the debt financing structure for over US$1
billion toward the Company’s Phase-2 Matawinie Mine and Bécancour Battery Material Plant.
Targeted capital providers include various governmental bodies, public institutions, and export
credit agencies, namely Export Development Canada and Canada Infrastructure Bank. The
financing structure at FID is set to also include an equity participation from key investors,
including the Company’s Anchor Customers.
Market Perspectives
The global EV momentum remains strong despite some policy headwinds in North America.
Over nine million EVs were sold worldwide in the first half of 2025, a 28% year-to-date increase
that saw significant growth in China (+32%) and Europe (+26%), while the North American EV
market slowed to just 3% growth (Rho Motion, July 2025). According to the International
Energy Agency, global EV sales are on track to exceed 20 million in 2025. GM, NMG’s Anchor
Customer, emerged as the #2 EV manufacturer in the U.S., with EV sales up 104% in H1 2025.
In Canada, GM secured the #1 place in Canadian EV sales, posting a 38% year-over-year
increase (GM, July 2025).
Energy storage is experiencing record growth with global grid-scale deployments increasing by
over 50% in H1 2025 (Rho Motion, July 2025), fueled by new renewable energy capacity, AI-
driven electricity demand and grid resilience infrastructure. Rho Motion tracked 14 gigascale
projects (>1 GWh) entering operation in 2025 so far, and over 300 such projects scheduled for
completion before 2027. The International Energy Agency forecasts a 180% increase in global
data center electricity demand by 2030, bolstering the need for large-scale storage. GM
announced a partnership with Redwood Materials to supply batteries for data centers, marking
AI infrastructure as a second major growth market for lithium-ion batteries beyond EVs (GM,
July 2025).
The global pipeline of battery production remains robust at 9,275 GWh (Benchmark, July 2025).
New capacity is coming online, namely Panasonic Energy’s, NMG’s Anchor Customer, De Soto
plant inaugurated in July 2025. The Kansas factory is set to boost Panasonic Energy’s U.S.-based
production capacity to approximately 73 GWh and help meet the demand from automotive
customers expanding their EV production (Panasonic Energy, July 2025). Panasonic Energy is
targeting a 50% local supply chain integration and full production by year-end, while
diversifying its EV client base across established OEMs and start-ups (Bloomberg, July 2025).
Resetting American policies on clean technology and strategic sectors, the newly adopted
American One Big Beautiful Bill Act tightens domestic content rules for battery manufacturing
and imposes new limits to exclude China and other foreign entities of concern from critical
mineral supply chains. The legislation also eliminates and/or phases out incentives in several
sectors but preserves battery storage tax credits. It also allocates US$2.0 billion for the National
Defense Stockpile to acquire strategic and critical minerals, and US$5.0 billion to the
Department of Defense’s Industrial Base Fund for investments in critical mineral supply chains
(U.S. Congress; SFA Oxford, July 2025).
Moreover, the U.S. Department of Commerce announced preliminary affirmative determinations
as part of its antidumping and countervailing duties investigation of active anode material from
China (International Trade Administration, July 2025). Combined tariffs on Chinese graphite-
based active anode material bring effective duties to 160%, thus improving the competitiveness
of North American producers (Benchmark Mineral Intelligence, July 2025). Final duties
determination is expected in December 2025.
Members of the North Atlantic Treaty Organization (“NATO”), a political and military alliance
of countries from Europe and North America, adopted a new Defense Investment Pledge of 5%
of GDP by 2035, including 1.5% for defense-adjacent infrastructure such as critical minerals
development. NATO lists graphite among 12 essential minerals for defense technology (NATO,
July 2025). Investments in Canadian critical minerals not only strengthen NATO readiness but
also reduce reliance on Chinese-controlled supply chains.
Management notes that current trade and geopolitical dynamics—marked by rising tariffs,
shifting alliances, and growing resource nationalism—are injecting significant uncertainty into
global supply chains and investment planning. EV adoption remains strong globally but is
encountering policy headwinds in North America, while energy storage emerges as the next
major growth driver, fueled by rising AI and data center power demand. Geopolitical
fragmentation and reconfiguration of global trade flows are reshaping alliances and leading to
volatility in investment and operational planning, with firms delaying or altering strategies amid
uncertainty. Together, these shifts may reshape market demand, investment flows and supply
chain strategies across the Western World (World Economic Forum, June 2025).
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
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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 secure its project financing and to secure a positive FID,
including to complete the term sheet and finalize the legal documentation, to execute contracts
with key suppliers and construction contractors, to complete the detailed engineering, to develop
a fully integrated ore-to-battery-material source of graphite-based active anode material in the
Province of Québec, including the possibility of sequencing financing stages, exploring 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, 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
expectations include, among others, availability financing or financing on favorable terms for
the Company, delays in the reaching FID, 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 31, 2025, 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.
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.
Contacts
MEDIA
Julie Paquet
VP Communications & ESG Strategy
+1-450-757-8905 #140
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993