Canadian miner Nouveau Monde Graphite (NMG) on Thursday announced an offtake agreement with General Motors (GM) and a commitment from the automotive giant to invest $150-million to support the development of what is projected to be the first fully integrated natural graphite active anode material project of its kind in North America.

NMG and GM have agreed to a multi-year supply agreement for 18 000 t/y of active anode material from the Quebec project.

GM will make an initial $25-million equity investment in NMG to support the graphite company’s Phase 2 operations – the Matawinie mine and the Becancour battery material plant.

GM has also committed to subscribe for a further $125-million of equity upon the successful completion of conditions precedent and a positive final investment decision.

“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 US, to our investments across the supply chain, we are developing a North American electric vehicle (EV) ecosystem aimed at benefiting consumers, expanding economic opportunity, and creating a competitive advantage for GM,” commented GM VP for global purchasing and supply chain Jeff Morrison.

The announcement coincides with a parallel offtake agreement with Panasonic Energy, which combined covers about 85% of NMG’s planned active anode material production at its Phase 2 Becancour battery material plant.

NMG will supply Panasonic with 18 000 t/y of active anode materials over seven years.

In addition, the parties also entered into a subscription agreement for Panasonic to make an initial $25-million equity investment in NMG.

Panasonic intends to further finance, together with potential co-investors, an amount valued at about $150-million as part of construction funding for the Phase 2 facilities.

NMG states that the respective offtake agreements and investments mark a significant milestone toward future funding of anchor customers of up to $275-million.

Respective offtake agreements and investments mark a significant milestone toward future funding of anchor customers of up to $275-million, subject to certain conditions.

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 EVs.