NYSE- and TSX-listed Nouveau Monde Graphite )NMG) has released an updated feasibility study for its Phase-2 integrated graphite production, covering the Matawinie mine and Bécancour battery materials plant in Quebec. 

The study refines the company’s ore-to-active anode material production model in response to technological advancements, project optimisations, and economic updates.

The updated study indicates an after-tax internal rate of return of 17.5% and a net present value of $1.05-billion, reflecting market projections for NMG’s offtake agreements with Panasonic Energy and General Motors, as well as additional production capacity. The results confirm the technical and economic viability of the project, positioning the company to advance project financing ahead of a final investment decision (FID).

“The underlying driver for NMG’s ore-to-battery-material business is undeniable,” said NMG chairperson Arne Frandsen. “While inflation, geopolitics, and trade dynamics create turbulence, we are focused on delivering carbon-neutral advanced graphite materials to power the energy transition.”

The feasibility study updates key parameters from NMG’s 2022 study. The company also aligned financial metrics with US dollars to better reflect the economic structure of the project, including anticipated financing, revenues, and capital expenditures.

INTEGRATED PRODUCTION MODEL
NMG’s vertically integrated model is designed to supply the North American electric vehicle and energy storage markets with a local source of natural graphite anode material. The Matawinie mine will provide feedstock for the Bécancour battery materials plant, optimising operational efficiencies and maximising value along the supply chain.

The company has secured offtake agreements covering more than 80% of its planned Phase-2 production. With project financing in place, construction could begin immediately following a positive FID, with commercial production commencing within three years.

“We have been hard at work refining every component of our future operations,” said NMG founder, president, and CEO Eric Desaulniers. “Input from our anchor customers, combined with detailed engineering and procurement planning, has enabled us to optimise our projected Phase-2 commercial production. We are confident that our plans will deliver a competitive operation supplying highly specialised products.”

NMG will present the feasibility study to targeted lenders, institutional investors, and its offtake partners to formalise project financing and secure an FID.