MONTREAL – Nouveau Monde Graphite Inc has finalized a series of binding offtake agreements that cover nearly all of the planned production from its flagship Matawinie mine, a critical step that paves the way for a final investment decision on the Quebec project, the company said on Friday.
The agreements, announced as G7 energy and environment ministers met in Canada, include a strategic partnership with the Canadian government itself, which will take 15,000 tonnes per annum (tpa) of graphite concentrate and help market an additional 15,000 tpa to allied nations.
The combined deals with the government, Japan’s Panasonic Energy (6752.T), and trading firm Traxys North America LLC, alongside advanced negotiations with another major anode manufacturer, represent a significant de-risking of the project for lenders and investors.
“This provides our targeted financial partners with visibility on the project’s bankability and risk profile,” said Eric Desaulniers, NMG’s Founder, President, and CEO. “We are accelerating with confidence toward a final investment decision.”
The Phase-2 Matawinie Mine is central to Western efforts to build a secure, independent supply chain for critical minerals, essential for electric vehicle (EV) batteries and other strategic technologies like defense and manufacturing. Graphite is the primary material in lithium-ion battery anodes.
Canadian Government Takes Strategic Role
In a move underscoring the mineral’s strategic importance, the Canadian government signed a binding term sheet for a seven-year offtake of 30,000 tpa of graphite concentrate. The deal reserves the material for Canada and its allied countries for strategic applications.
Half of the volume, 15,000 tpa, is a firm take-or-pay commitment from the government at a fixed North American market price. The other 15,000 tpa is contingent on NMG securing offtake agreements with allied nations or entities on similar terms. The government and NMG will also share profits from marketing this volume above the agreed fixed price.
“The Honourable Tim Hodgson, Minister of Energy and Natural Resources, said the agreement would “strengthen economic and national security” and accelerate the development of “secure, resilient critical minerals supply chains.”
Revised Deals with Panasonic and Traxys
NMG also updated its existing agreements with key customers to align with current market conditions and financing needs.
- Panasonic Energy: The binding offtake agreement was revised to fast-track the production of 13,000 tpa of active anode material, which will require approximately 25,000 tpa of graphite concentrate from Matawinie. Panasonic Energy is a strategic shareholder in NMG.
- Traxys: The binding offtake and marketing agreement was updated to secure 20,000 tpa of graphite concentrate for the refractory market, with 10,000 tpa on a take-or-pay basis. The deal is final, pending approval from the Traxys board.
Ongoing Negotiations and GM Update
NMG is in active talks with an established anode manufacturer for an offtake of up to 30,000 tpa of graphite concentrate. A portion of this volume is expected to be on a take-or-pay basis and could potentially support General Motors’ (GM.N) EV battery needs.
In connection with these negotiations, NMG and GM have mutually agreed to terminate their previously announced supply and investment agreements effective November 30, 2025. GM is now exploring a potential supply arrangement directly with the unnamed manufacturer.
Path to Financing and Construction
With these agreements potentially covering almost 100% of Matawinie’s future flake graphite production, NMG is now advancing project financing discussions. Due diligence by lenders is nearing completion, and negotiations on long-form term sheets are ongoing ahead of credit committee reviews expected in the coming months.
The company is considering two paths for a final investment decision (FID): a combined FID for both the Matawinie mine and the Bécancour Battery Material Plant, or a sequenced approach starting with the mine.
NMG has steadily de-risked the Matawinie project, having secured key permits, signed impact benefit agreements with First Nations, advanced engineering to over 80% completion, and partnered with Caterpillar (CAT.N) for a zero-emission mining fleet.