NMG is Developing What is Projected to Be the
First Fully Integrated Source of Natural Graphite Active Anode
Material in North America
+ NMG and GM have agreed to sign a multiyear supply agreement
for 18,000 tonnes per annum of active anode material, covering a
significant portion of NMG’s expected Phase-2 integrated
production, from graphite ore to battery materials.
+ GM commits to a US$150 million investment in two tranches,
subject to certain closing conditions, to support advancement and
ultimately construction of NMG’s Phase-2 operations.
+ Announcement coincides with parallel offtake agreement with
Panasonic Energy, which combined with GM’s Supply Agreement, covers
approximately 85% of NMG’s planned active anode material production
at its Phase-2 Bécancour Battery Material Plant.
+ GM’s Tranche 1 Investment and Supply Agreement support NMG’s
execution plan for its Phase-2 Matawinie Mine and Bécancour Battery
Material Plan, marking a significant milestone toward a subsequent
tranche investment of up to an additional US$275 million in the
aggregate from anchor customers, subject to certain conditions.
+ Collaboration provides GM with a source of carbon-neutral
active anode material to support its EV production, adding to GM’s
progress in developing a more sustainable and resilient North
American-focused EV supply chain.
+ Graphite is a key battery raw material, making up more than
95% of the anode side of lithium-ion batteries for EVs and clean
energy storage systems.
+ Shareholders, analysts, and media are invited to attend an
Investor Briefing today at 10:30 a.m. ET hosted by NMG’s Management
Team via webcast.
Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG,
TSX.V: NOU) and General Motors Holdings LLC (“GM”), a wholly owned
subsidiary of General Motors Co. (NYSE: GM), have agreed to sign a
supply agreement (the “Supply Agreement”) upon closing of the
Tranche 1 Investment, in which NMG will provide 18,000 tonnes per
annum (“tpa”) of its expected Phase-2 active anode material output
to GM upon reaching full production for an initial term of six
years. In complement to the Supply Agreement, NMG and GM entered
into a subscription agreement (the “Subscription Agreement”) in
which GM commits an aggregate US$150 million equity investment in
NMG, subject to certain closing conditions, to develop what is
projected to be the first fully integrated natural graphite active
anode material project of its kind in North America; a local,
carbon-neutral, reliable, sizeable, and ESG-driven source of
natural graphite for the electric vehicle (“EV”) and lithium-ion
battery market.
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GM’s all-electric Cadillac 2026 VISTIQ.
(Photo: Business Wire)
GM will make an initial US$25 million equity investment in NMG
(the “Tranche 1 Investment”) to support the advancement of NMG’s
Phase-2 operations – the Matawinie Mine and the Bécancour Battery
Material Plant – in line with GM’s battery manufacturer’s
specifications. GM also commits to subscribe for a further US$125
million of equity upon the successful completion of conditions
precedent and a positive final investment decision (“FID”) (the
“Tranche 2 Investment” and together with the Tranche 1 Investment,
the “Transaction”).
Arne H Frandsen, Chair of NMG, declared: “We welcome GM as a
shareholder, invested in our robust North American commercial plan
as well as our ESG commitments to responsible production and
partnered development with First Nations and communities. On behalf
of the Board of Directors, I commend NMG's team for their
outstanding work in defining what is set to become a thriving
relationship providing certainty of supply for GM, a roadmap to
value creation for stakeholders, and a robust foundation for growth
for shareholders.”
Jeff Morrison, Vice President, Global Purchasing and Supply
Chain at GM, stated: “Our collaboration with NMG is a milestone for
the industry, and in our ongoing development of a more sustainable
and resilient battery supply chain. From our assembly plants and
battery cell plants in the U.S., to our investments across the
supply chain, we are developing a North American EV ecosystem aimed
at benefiting consumers, expanding economic opportunity, and
creating a competitive advantage for GM.”
Eric Desaulniers, Founder, President, and CEO of NMG, reacted:
“From neighbours in Bécancour to now business partners, GM and NMG
align on a vision for a striving and local integrated supply chain,
from ore to EVs. North America is rich in resources, manufacturing
capacity, talents, and innovation. We are leveraging these
ingredients to drive a zero-emission future. Today marks a
momentous milestone for NMG, highlighting the progress made towards
our Phase 2 and the Company’s sound business plan of becoming North
America’s largest fully integrated natural graphite active anode
material producer to serve the booming Western battery and EV
market.”
More than 95% of the anode side of EV batteries is made from
graphite, making it the most demanded raw materials of all battery
metals (Benchmark Mineral Intelligence, January 2023). Natural
graphite responsibly extracted at NMG’s Phase-2 Matawinie Mine will
be transported to the Phase-2 Bécancour Battery Material Plant to
be processed into active anode material before being delivered to
battery cell plants for ultimate incorporation as batteries in GM’s
EVs.
With a confirmed multiyear supply commitment from GM
supplemented with the Tranche 1 Investment, NMG has now the means
and technical parameters in hand to advance engineering of the
Company’s Phase-2 Bécancour Battery Material Plant. This plant is
planned to be built within the same industrial park as GM and POSCO
Future M’s Cathode Active Material (“CAM”) processing facility, the
CA$600-million Ultium CAM plant currently in construction.
Today’s announcement also supports NMG’s engagement with
potential lenders, strategic investors, and governments with
greater visibility on bankability for the project financing linked
to a positive FID decision for the Company’s integrated Phase-2
Matawinie Mine and Bécancour Battery Material Plant. Lenders' input
has been provided throughout discussions with GM to facilitate a
successful financing at FID.
Supply Agreement
The Supply Agreement provides for supply of a volume of 18,000
tpa, once NMG reaches full production, of active anode material by
NMG to GM for an initial 6-year term from the commencement of the
Company’s Phase-2 production. The sales will be based on an agreed
upon price formula linked to future prevailing market prices as
well as a pricing mechanism to satisfy project financing ratios and
ensure stable procurement for GM. The Supply Agreement is subject
to conditions precedent which are standard for a project of this
nature. The Supply Agreement contains standard termination rights
for an agreement of this nature.
Strategic Investment & Investor Rights Agreement
In connection with the Tranche 1 Investment, GM has agreed to
subscribe for 12,500,000 common shares in the capital of NMG (the
“Common Shares”) and 12,500,000 common share purchase warrants (the
“Warrants”) for aggregate proceeds of US$25 million. Such Warrants
are generally exercisable in connection with the Tranche 2
Investment at FID in accordance with their terms. Each Warrant will
entitle the holder thereof to acquire one Common Share (“Warrant
Share”) at a price per Warrant Share equal to the lower of (i)
US$2.38 per Common Share, and (ii) the amount in US Dollars per
Common Share equal to the closing price of the Common Shares on the
trading day immediately following the date on which the Tranche 1
Investment is announced. The exercise of the Warrants is subject to
certain ownership limitations.
NMG will use the net proceeds from the Tranche 1 Investment for
the development of the Phase-2 Matawinie Mine and Bécancour Battery
Material Plant.
NMG and GM will also enter into an investor rights agreement
(the “Investor Rights Agreement”) which includes registration
rights at the closing of the Tranche 1 Investment. Pursuant to the
Investor Rights Agreement, the GM securities will be subject to a
“lock-up” for a period of 18 months from the date of the Tranche 1
Investment. The Investor Rights Agreement also provides GM with
certain rights relating to its investment in NMG, including certain
board nomination and anti-dilution rights. Copies of the
Subscription Agreement, the Offtake Agreement, and the Investor
Rights Agreement will be available on the Company’s page on SEDAR+
www.sedarplus.ca and on EDGAR at www.sec.gov, and the summary of
the such agreements contained herein is qualified in its entirety
by the reference to such documents.
NMG’s Active Anode Material
Thanks to active technical engagement between the parties,
active anode material produced at NMG’s Phase-1 facilities has been
supplied to and tested by GM’s battery manufacturer to confirm
alignment with its distinct specifications and quality
standards.
NMG’s fully integrated production in Québec, Canada, from ore to
active anode material, provides guarantee of a local, traceable,
and reliable source for GM’s supply chain. The Supply Agreement
integrates sourcing requirements under the Inflation Reduction
Act's consumer EV tax credit provisions, a condition aligned with
NMG’s localization and value chain design.
NMG’s active anode material has demonstrated minimal
environmental footprint in an ISO-compliant life cycle assessment
thanks to the Company’s planned all-electric operations powered by
renewable energy combined with clean processing technologies. NMG
has also been identified as “Industry Leading” in Benchmark Mineral
Intelligence’s natural graphite sustainability index, the only
producer to have been qualified in the category following a
comprehensive examination of ESG practices, transparency, and
engagement.
Decarbonization efforts, trade regulations, and recent
geopolitical developments reaffirm the importance of establishing
of a local, resilient, and ESG-driven supply chain of graphite to
support battery and EV production. NMG is targeted to become the
largest natural graphite producer in North America, fully
integrated from ore to active anode material, and with demonstrated
sustainability performance.
Complementary Information
NMG has also announced having entered a multiyear binding
offtake agreement with Panasonic Energy Co., Ltd. and a private
placement with Panasonic Holdings Corporation. Other strategic
investors have also concurrently committed to an investment of
US$37.5 million in NMG via a private placement. Additional
information regarding such transactions is available on the
Company’s website, SEDAR+ at www.sedarplus.ca and EDGAR at
www.sec.gov.
Shareholders, analysts, and members of the media are invited to
attend a webcast Investor Briefing this morning, Thursday, February
15, 2024, at 10:30 a.m. ET. Hosted by President and CEO Eric
Desaulniers with the participation of NMG’s Management Team, the
briefing will entail a technical presentation followed by a
question-and-answer session. Registration should be completed prior
to the start of the briefing at:
https://us06web.zoom.us/webinar/register/WN_VmhZvajOQJ2yICWrk9ySzQ.
A brief interview with Eric Desaulniers on this announcement is
also available for viewing here: https://youtu.be/kRkK3pPbqn4.
Members of the media may download high-resolution files at
https://we.tl/t-t9Nwt9RiQR and make additional interview or
information requests to Julie Paquet, Vice President,
Communications & ESG Strategy at NMG.
Completion of the transaction remains subject to customary
regulatory approvals, including approval of the TSX Venture
Exchange and NYSE, shareholder approval in respect of the Tranche 2
Investment, and other customary closing conditions. Copies of the
Subscription Agreement, the Offtake Agreement, and the Investor
Rights Agreement will be available on the Company’s page on SEDAR+
at www.sedarplus.ca and on EDGAR at www.sec.gov.
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to become a key contributor
to the sustainable energy revolution. The Company is working
towards developing a fully integrated source of carbon-neutral
battery anode material in Québec, Canada, for the growing
lithium-ion and fuel cell markets. With enviable ESG standards, NMG
aspires to become a strategic supplier to the world’s leading
battery and automobile manufacturers, providing high-performing and
reliable advanced materials while promoting sustainability and
supply chain traceability. www.NMG.com
About GM
General Motors (NYSE:GM) is a global company focused on
advancing an all-electric future that is inclusive and accessible
to all. At the heart of this strategy is the Ultium battery
platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under the Chevrolet, Buick,
GMC, Cadillac, Baojun, and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety and security services, can be found at
www.gm.com.
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Cautionary Note
All statements, other than statements of historical fact,
contained in this press release including, but not limited to those
describing the closing of the Transaction, including Tranche 1
Investment and Tranche 2 Investment, a positive final investment
decision and closing of project financing, closing of the potential
total equity investments of US$275 million from GM, Panasonic
Holdings Corporation and its co-investors, the Company’s projection
of becoming North America’s largest fully integrated active anode
material producer, the anticipated benefits of the transactions
described herein, the satisfaction of the conditions to closing the
transactions and the timing thereof, receipt of any regulatory
approvals or shareholder approval in respect of the Transaction,
the intended use of proceeds from the Tranche 1 Investment,
anticipated benefits to GM in connection with the Transaction, the
Company’s relationship with its stakeholders, including First
Nations and communities, the positive impact of the foregoing on
project economics and shareholder value, the realization of the
condition precedents of the Supply Agreement and its entry into
force, the supply of active anode material to GM, the Company’s
planned all-electric operations, fulfillment of the closing
conditions and completion of the Transaction, the intended
production of eco-friendly advanced materials , trends in
legislation, consumer preferences, industry standards, markets and
technology, the intended 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, constitute “forward-looking information” or
“forward-looking statements” (collectively, “forward-looking
statements”) within the meaning of Canadian and United States
securities laws, 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
underlying factors and assumptions, including the current
technological trends, the business relationship between the Company
and its stakeholders, the ability to operate in a safe and
effective manner, the timely delivery and installation at estimated
prices of the equipment supporting the production, assumed sale
prices for graphite concentrate, the accuracy of any Mineral
Resource estimates, future currency exchange rates and interest
rates, political and regulatory stability, prices of commodity and
production costs, the receipt of governmental, regulatory and third
party approvals, licenses and permits on favorable terms, sustained
labor stability, stability in financial and capital markets,
availability of equipment and critical supplies, spare parts and
consumables, the various tax assumptions, CAPEX and OPEX estimates,
all economic and operational projections relating to the project,
local infrastructures, 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 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, those risks, 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 favorable 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, changes 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. A further description of risks and
uncertainties can be found in NMG’s Annual Information Form dated
March 23, 2023, 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.
The market and industry data contained in this press release is
based upon information from independent industry publications,
market research, analyst reports and surveys and other publicly
available sources. Although the Company believes these sources to
be generally reliable, market and industry data is subject to
interpretation and cannot be verified with complete certainty due
to limits on the availability and reliability of raw data, the
voluntary nature of the data-gathering process and other
limitations and uncertainties inherent in any survey. The Company
has not independently verified any of the data from third-party
sources referred to in this press release and accordingly, the
accuracy and completeness of such data is not guaranteed.
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 the Company is available on SEDAR+
(www.sedarplus.ca), and for United States readers on EDGAR
(www.sec.gov), and on the Company’s website at: www.NMG.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214552719/en/
MEDIA Julie Paquet VP Communications & ESG Strategy
+1-450-757-8905 #140 jpaquet@nmg.com
INVESTORS Marc Jasmin Director, Investor Relations
+1-450-757-8905 #993 mjasmin@nmg.com
Grafico Azioni Nouveau Monde Graphite (TSXV:NOU)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Nouveau Monde Graphite (TSXV:NOU)
Storico
Da Feb 2024 a Feb 2025
