NMG Provides a Quarterly Update on the Advancement of its Phase-2 North American Graphite Production

Core Insights - Nouveau Monde Graphite Inc. (NMG) is advancing its Phase-2 Matawinie Mine project, focusing on securing commercial agreements and financing to support natural graphite production for North American, European, and G7-allied markets [3][4][11] Commercial Agreements - NMG has established a binding term sheet with the Government of Canada for a seven-year offtake agreement for 30,000 tonnes per annum (tpa) of graphite concentrate, including a 15,000 tpa take-or-pay commitment [2][7] - The company has revised its commercial agreement with Panasonic Energy to produce 13,000 tpa of active anode material, reserving approximately 25,000 tpa of graphite concentrate for this purpose [6][43] - NMG has signed a binding term sheet with Traxys North America for up to 20,000 tpa of graphite concentrate for the refractory market, subject to board approval [8][42] Project Development and Financing - The project financing process for the Phase-2 Matawinie Mine is progressing well, with due diligence nearing completion and negotiations for long-form term sheets ongoing [5][15] - NMG is actively engaged with lenders and strategic investors to secure financing efforts in view of a final investment decision (FID) [4][15] - The company is also finalizing supply agreements for equipment packages and launching tenders for the construction phase of the project [13][15] Feasibility Study and Economic Viability - An updated feasibility study for the Phase-2 Matawinie Mine indicates a nominal annual processing rate of 2.56 million tonnes, with an average grade of 4.23% graphitic carbon and a pre-tax NPV of US$379 million [17][18] - The study reflects a capital expenditure (CAPEX) of US$421 million and an annual operating expenditure (OPEX) of US$44 million, with a pre-tax internal rate of return (IRR) of 17.3% [17][18] Market Dynamics - The global electric vehicle (EV) market reached a record high of 2.1 million units sold in September 2025, with a year-to-date growth of 26% [25] - Global energy storage installations are projected to rise by 23% year-over-year in 2025, indicating strong demand for battery materials [26] - FOB China prices for natural graphite have slightly decreased due to weak demand, while U.S. duties on Chinese graphite imports are pushing for a North American supply chain [24]