Shaking Up the Graphite Market
China’s recent move to tighten export regulations on graphite products has sent ripples through the global market. As the world’s leading graphite producer and exporter, China holds a significant influence over the supply chain. With more than 90% of the world’s graphite refined by China for electric vehicle (EV) battery anodes, this new export permit requirement showcases a strategic move to maintain dominance in global manufacturing.
The North American Perspective
Concerns over the scarcity of graphite supply in North America are escalating as the Lac des Iles mine in Quebec faces depletion. With a demand for 200,000 tonnes of graphite and a current US supply capability of zero, the urgency for domestic production is crystal clear.
Financial Ambitions and Operational Phases
Nouveau Monde Graphite (NMG) has set its sights on a monumental goal: raising $1.2 billion to establish itself as North America’s primary source of natural graphite active anode material. The ambitious project is divided into three phases, with a substantial portion of the funding coming from debt and equity.
Phase one sees the Matawinie mine in Saint-Michel-des-Saints already in operation, targeting a production of 103,000 tpa of graphite concentrate over 25 years. Phase two introduces the Bécancour battery materials plant, slated to produce 43,000 tpa of active anode material. Finally, phase three involves the Uatnan mine and concentrator with an envisioned output of 500,000 tpa of graphite concentrate over the next 24 years.
Strategic Advancements and Promising Prospects
Uatnan, recognized as the third-largest graphite project globally in 2023, has now become a focal point for NMG after the company’s complete acquisition of the asset earlier this year. CEO Éric Desaulniers emphasized that all produced graphite will remain within the US and Canada, reinforcing the project’s regional significance and economic impact.
Amidst the groundbreaking work at the Bécancour plant, plans are already in motion to supply Panasonic’s upcoming battery factory in Kansas. Desaulniers highlighted Panasonic’s existing collaborations with Tesla in Nevada, as well as upcoming ventures with GM in Ohio, Michigan, and Tennessee.
A Sustainable Future
NMG is actively exploring avenues for battery material recycling, with a strong focus on achieving full circularity in their operations. Desaulniers expressed confidence in the company’s research and development efforts to enhance sustainability practices and meet evolving market demands.
With strategic partnerships in place and promising developments on the horizon, NMG is poised to revolutionize the battery material industry. The company’s commitment to vertical integration and technological advancement underscores its position as a pioneering force in the market.
