To : Nova Scotia Securities Commission Office of the Superintendent of Securities (Prince Edward Island) Financial and Consumer Services Commission (New Brunswick), Office of the Superintendent of Securities Services Newfoundland and Labrador
BY SEDAR
Québec City, May 12, 2021
To : Nova Scotia Securities Commission
Office of the Superintendent of Securities (Prince Edward Island)
Financial and Consumer Services Commission (New Brunswick),
Office of the Superintendent of Securities Services Newfoundland and Labrador
Autorité des marchés financiers du Québec
Ontario Securities Commission
The Manitoba Securities Commission
Financial and Consumer Affairs Authority of Saskatchewan
Alberta Securities Commission
British Columbia Securities Commission
Office of the Yukon Superintendent of Securities
Office of the Superintendent of Securities, Department of Justice, Government of the
Northwest Territories
Nunavut Securities Office
Re: Nouveau Monde Graphite Inc. (the “Corporation”) – Re-filing pursuant to Part 4B.2 (2) (a) of
Regulation 51-102 respecting Continuous Disclosure Obligations (V-1.1, r. 24)
Sir/Madam:
Please note that the Press Release of the Corporation initially filed on SEDAR on March 11, 2021 is re-
filed as of the date hereof through the form of an amended press release. This filing is required due to
the removal of all future oriented financial information beyond December 31st, 2022.
All other information appearing in the aforementioned Press Release remains unchanged.
Yours very truly,
[Signature page follows]
2
NOUVEAU MONDE GRAPHITE INC.
By: (s) Éric Desaulniers
Éric Desaulniers
President and Chief Executive Officer
AMENDED PRESS RELEASE
For immediate release
NOUVEAU MONDE ANNOUNCES PHASE 2 OF ITS FULLY-
INTEGRATED ANODE MATERIAL PRODUCTION FACILITY
» Nouveau Monde’s mission and strategy is to become the Western World’s largest
producer of high-quality anode materials to be used mainly in batteries for electrical
vehicles and renewable energy storage
» Its large-scale lithium-ion active anode material facility in Bécancour, Québec (Canada)
(“Bécancour VAP project”) is an integral part of its strategy
» Nouveau Monde has acquired a 200,000 m2 parcel in the industrial park of Bécancour,
adjacent to its Phase 1 plant located within the facilities of Olin Corporation
» The Phase 1 plant of the Bécancour VAP project is currently under construction, with a
planned nameplate capacity of 2 kilotonnes per annum (“ktpa”) of anode material and
scheduled to make its first production within 12 months
» The Front-End Loading engineering analysis (“FEL-1”) for Phase 2 has now been
completed and supports a strong business case to build a large-scale lithium-ion active
anode material facility in Bécancour
» Front-End Loading pre-feasibility engineering analysis (“FEL-2”) is underway with the
goal to be completed within 12 months
» Nouveau Monde continues to progress qualification activities and commercial
discussions with potential customers using material produced at its demonstration
facility
» Nouveau Monde remains committed to “Best in Class Standards”, by reducing the supply
chain carbon footprint and targeting carbon n eutrality for its entire production value
chain
MONTRÉAL, QUÉBEC, March 11, 2021 – Nouveau Monde Graphite Inc. (“Nouveau Monde” or the
“Company”) (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to announce the completion
of a Front-End Loading engineering analysis (“FEL-1”) for Phase 2 of its large-scale commercial
lithium-ion anode material project in Bécancour, Québec, Canada as it continues to execute its
strategy of becoming the Western World’s largest producer of high-quality anode materials to be
used mainly in batteries for electrical vehicles and renewable energy storage . As it expands,
Nouveau Monde preserves its firm commitment to carbon neutrality.
Arne H Frandsen, Chairman of Nouveau Monde, commented: “Nouveau Monde is firmly on its way
to become one of the world’s most important anode materials producers, delivering high quality
anode materials from our sophisticated processing and beneficiation plants in Bécancour. Our
successful upstream integration with our Matawinie mineral project is designed to ensure that we
have access to the right quality feedstock for decades to come. Thanks to Nouveau Monde’s team
of local and internationally acclaimed experts and professionals, we are continuing to move forward
at speed!”
Eric Desaulniers, President and CEO of Nouveau Monde, added: “We founded Nouveau Monde in
2011 with the vision of developing the largest and best-in-class graphite-based anode material
supplier in North America. For the past five years, we have specifically focused on developing the
processing know-how and skills internally. We have hired highly qua lified professionals from
around the world, creating a multifaceted team of anode materials experts. This team has in turn
engaged with multiple other local and international experts to establish our technologies to
produce high-quality lithium-ion anode material on a large scale.
Today, we are proud to announce Phase 2 of our effort, with a projected low operating cost profile.
This next phase will continue to comply with Nouveau Monde’s high ESG standards and will benefit
from Québec’s green and inexpensive hydroelectricity as our exclusive energy source. Our
significant forecasted incremental annual operating profit potential is a testimony that it is possible
to embrace sustainable development and profitability to the benefit of all stakeholders.
It is essential for North America to develop a fully integrated supply chain of high -quality battery
materials that are produced at meaningful scale, with the lowest carbon footprint, with strict
traceability compliance while maintaining cost competitiveness at all times.”
Figure 1: 3D rendering of Nouveau Monde's Bécancour VAP project
The FEL-1 Analysis
The FEL-1 concludes that a production of 4 2,000 tpa of anode material can be achieved with the
construction of a brand-new state-of-the-art facility on Nouveau Monde’s industrial site of 200,000
m2 and supported by its existing Phase 1 plant infrastructure. The FEL-1 includes a review of all
environmental regulations and permits, the project schedule, product specifications definition,
stakeholders’ analysis, the capital expenditure budget and projected operating cost s. Nouveau
Monde’s site in Bécancour is strategically situated for large-scale anode material production, with
proximity to potential customers, access to key utilities (e.g., water, hydropower, gas), adjacent to
a chlor-alkali producer which provides access to key consumables , a skilled workforce and an
adjacent deep-water international port on the St. Lawrence River.
Bécancour VAP Project Financing Strategy
The Company’s strategy is to finance the Bécancour VAP project with a structure involving
approximately two thirds comprised of non -dilutive financial instruments and the remaining one
third of equity financing. The non -dilutive financial instruments that are contemplated by the
Company are a combination of bank loans, structured debt, forward payments on production and
royalty streams. The Company’s largest shareholder, The Pallinghurst Group, is fully supportive of
the Bécancour VAP project . No assurance can be given that any such additional financing will be
available or that, if available, it can be obtained on terms favourable to the Company. The failure
to obtain additional financing on favourable terms, or at all, could have a material adverse effect
on the ability of the Company to complete the construction of the Bécancour VAP project.
Project Timeline
Given the strong economics revealed in the FEL-1, Nouveau Monde has commenced a FEL-2 pre-
feasibility study, based on the results from the demonstration modules , which is expected to be
completed in the first half of 2022. The FEL-1 evaluated various strateg ies to optimise the
deployment of the project , including advancing directly to an enhanced FEL -2 program that
includes detailed engineering of certain portion s of the project and a modular construction and
commissioning sequence enabling an initial production capacity to be available earlier , while
construction activities are being completed. The project development pathway beyond detailed
design and initiation of the construction phase will be determined by financial partnerships and
end-customer commitments.
Figure 2: Bécancour VAP Project prospective timetable
De-Risking by Building Significant Phase 1 Plant and Strategic R&D
The production of purified, coated spherical graphite used as anode material in lithium-ion battery
involves three major process steps , namely: shaping, purification and coating. Since 2016, the
Company has committed approximately US$27 million in process development and de-risking by
running large-scale bench test and building demonstration units. Since early 2020, Nouveau Monde
has been operating two commercial scale shaping units in which it processed nearly 1,000 batches
to confirm the optimi sed process parameters and equipment performance profile to be
implemented to produce systematically within customers ’ specifications. Significant equipment
improvements and modifications were implemented on-site to achieve an optimum operating
throughput and overall yield while maintaining constant in-specs quality material. Ongoing internal
R&D programs on the shaping process are targeting manufacturing excellence by the enhancement
of fundamental understanding of fluid dynamics and air flows by using as -built scan, numerical
modelling and adoption of advanced automation and artificial intelligence technologies.
As for the Phase 1 purification sector of the facility, Nouveau Monde developed its proprietary
thermochemical process that is currently being deployed at a 1 ,500 tpa nameplate capacity in
Olin’s facility adjacent to the Company’s industrial site, with a commissioning scheduled to start in
the first half of 2021 ( Construction Commenced of Phase 1 Purification Facility for Lithium -Ion
Battery Material in Bécancour and the Land for Phase 2 Expansion Is Now Successfully Acquired).
The final process step to produce anode material consists of coating the purified spherical graphite
with a carbon-based material to minim ise the surface area and enhance the stability of the solid
electrolyte interface. Nouveau Monde is curr ently in the detailed engineering phase and has
initiated the procurement to build the first module of the Phase 1 2,000 tpa capacity plant that is
scheduled to be commissioned early in 2022 ( Nouveau Monde Advances its 2,000 -Tonne Coated
Spherical Graphite Production Facility – Commissioning Set for Q1 Next Year). Nouveau Monde is
of the view that its strategy of de-risking the process by investing in a rapid deployment of a first
scalable-complete module will allow a faster product qualification with lithium-ion battery cell
makers and more efficient and reliable engineering development.
Product Offering and Marketing
The anode material flowsheet developed by Nouveau Monde is designed to produce anode
material of various particle size s varying between 8 and 20 µm with flexibility to serve various
lithium-ion battery applications. Roskill’s Fall 2020 issue reported 2019 average Chinese sales
prices of US$ 7,157/tonne for CSPG. Moreover, th e Company and its experienced graphite
marketing team is actively developing value -added opportunities for the 1 and 8 µm micronised
graphite representing a valuable anode material process by-product potentially serving multiple
niche applications .
In their latest February 2021 Lithium -ion Battery Megafactory assessment report, Benchmark
Mineral Intelligence forecasts 562 GWh in 2025 and 937 GWh in 2030 of battery capacity in North
America and Europe combined with associated graphite anode demand of 674 ,000 tpa and
1,124,000 tpa, respectively.
Fully Committed to Carbon Neutrality
Nouveau Monde seeks to contribute to the decarbonisation of the economy by producing graphite
materials, a required input for the production of low -carbon products, with the smallest
greenhouse gas (“GHG”) footprint possible. In addition to pushing the sci ence and technology
development in order to mine and transform graphite in a sustainable and low GHG -emitting
manner, the Company has pledged to offset all GHG emissions from sources it either has direct
control over or may significantly influence (i.e., t he Company’s Scope 1, Scope 2 and portion of
Scope 3 emissions).
Nouveau Monde has ongoing R&D programs in place with professor Philippe Ouzilleau, PhD, from
McGill University in Montréal to find alternate carbon sources to the petroleum -based product
currently being used in the coating process with the objective of significantly reducing its carbon
emissions.
Nouveau Monde also remains fully committed to achieving carbon neutrality at the Company’s
level, including the Matawinie mine and concentrator in Saint-Michel-des-Saints and the Bécancour
VAP project.
Co-Existence of the Matawinie Mineral Project and the Bécancour VAP Project
The FEL-1 does not impact nor alter the National Instrument 43-101 (“NI 43-101”) feasibility study
filed on December 10, 2018 with regards to the Matawinie mineral project. While Nouveau Monde
is of the view that there are obvious operational and financial benefits to develop ing a fully
controlled and integrated business model, both the Matawinie mineral project and Bécancour VAP
project should be considered independent ly from each other with regards to their economic
viability. To this end, it is the intention of the Company to sell opportunistically the high -purity
jumbo and large flakes produced at the Matawinie mineral projec t directly into third party
traditional and speciality graphite markets, while the Bécancour VAP project intends to source its
products, comprised of intermediate and fine flakes, from multiple sources. It is Nouveau Monde’s
intention to prioritise the use of the feedstock produced at the Matawinie mineral project;
however, the Company intends to source raw material from other graphite suppliers from time to
time should market, or operational, conditions so justify.
Due to its modular structure, upon Phase 2 of the Bécancour VAP project successfully reaching
name plate capacity, we believe it will likely be possible for Nouveau Monde to expand its capacity
further. Such Phase 3 expansion is currently being analysed by management, but its
implementation has not been agreed to and is entirely speculative at this point in time.
The Company will inform its stakeholders of material developments with regards to the Bécancour
VAP project as required by its continuous disclosure obligations set out in Regulation 51-102.
About Nouveau Monde
Nouveau Monde is striving to become a key element in the sustainable energy revolution. The
Company is working towards developing a fully-integrated source of green battery anode material
in Québec, Canada. Targeting full-scale commercial operations by 2023, the Company is developing
advanced carbon-neutral graphite-based material solutions for the growing lithium -ion and fuel
cell markets. With low-cost operations and high ESG standards, Nouveau Monde aspires to become
a strategic supplier to the world’s leading battery and auto manufacturers, ensuring robust and
reliable advanced material, while guaranteeing supply chain traceability.
Media Investors
Julie Paquet
Director, Communications
+1-450-757-8905 #140
Christina Lalli
Director, Investor Relations
+1-438-399-8665
Subscribe to our news feed: https://nouveaumonde.group/investors/#news
Cautionary Note Regarding Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not
limited to ( i) the timetable and the operating metrics of the Bécancour VAP project, (ii) the financing
strategy of the Bécancour VAP project, (iii) the benefits of the Company’s de-risking strategy, (iv) the carbon
neutrality initiatives, (v) the positive impact of the foregoing on project economics, (vi) the intended results
of the initiatives described above, (vii) the intended project output capacity, (viii) future market supply and
demand, and ( ix) Nouveau Monde’s mission and strategy and the “About Nouveau Monde” paragraph
which essentially describe the Company’s outlook and objectives, constitute “forward-looking information”
or “forward -looking statements” within the meaning of certain securities law s, and are based on
expectations, estimates and projections as of the time of this press release. Forward -looking statements
are necessarily 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 may prove to be
incorrect. Moreover, these forward -looking statements were based upon various under lying factors and
assumptions, including the timely delivery and installation of the equipment supporting the production, the
Company’s business prospects and opportunities and estimates of the operational performance of the
equipment, and are not guarantees of future performance.
Forward-looking information and 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
information and statements. Risk factors that could cause actual results or events to differ materially from
current expectations include, among others, delays in the scheduled delivery times of the equipment, the
ability of the Company to successfully implement its strategic initiatives and whether such strategic
initiatives will yield the expected benefits, the availability of financing or financing on favourable terms for
the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining
the necessary permits, the operating performance of the Company’s assets and businesses, competitive
factors in the graphite mining and production industry, chan ges in laws and regulations affecting the
Company’s businesses, political and social acceptability risk , environmental regulation risk, currency and
exchange rate risk, technological developments, the impacts of the global COVID -19 pandemic and the
governments’ responses thereto, and general economic conditions, as well as earnings, capital expenditure,
cash flow and capital structure risks and general business risks . 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.
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 release.
Further information regarding Company is available in the SEDAR database (www.sedar.com) and on the
Company’s website at: www.NouveauMonde.group