Panasonic and GM want to source graphite for their batteries from Canada

Panasonic and GM
Panasonic and GM

Nouveau Monde Graphite wants to extract graphite, which is important for battery production, in its Matawinie mine in the Canadian province of Quebec and plans to further process it in a plant in Bécancour (also in the province of Quebec). The contract now signed with Panasonic provides for the purchase of 18,000 tons annually over a period of seven years and follows a declaration of intent between the two companies in autumn 2022. NMG and General Motors have also agreed on a graphite delivery volume of 18,000 tons per year – but here for a period of six years. Both agreements together are expected to utilize approximately 85 percent of NMG’s planned production.

Both Panasonic and GM are also investing $25 million each in NMG. Nouveau Monde Graphite will also receive a further $37.5 million from Mitsui and Pallinghurst. The capital will be used to support Canadians’ plans to build a local value chain “from ore to battery material.” However, the final investment decision is still pending.

As early as 2022, NMG announced a feasibility study for the development of graphite production in North America. Since the use of clean energy is widespread in Canada and the route to the USA is proportionate, manufacturers there can reduce the carbon footprint of their batteries by sourcing battery materials from Canada. This in turn secures them subsidies under the “Inflation Reduction Act”.

Commenting on the new agreements, Arne H. Frandsen, Chairman of NMG, said: “These inspiring offtake agreements, coupled with a comprehensive investment strategy, will take NMG through the final steps before a final investment decision (FID”).”

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