Two big guns in the electrical industry, GM and Panasonic, are investing in Nouveau Monde Graphite and are committed to buying part of its future production.
GM commits to purchasing 18,000 tonnes per year of NMG’s battery material production and commits to investing US150 million in two tranches to support the company’s future development.
With Panasonic, the agreement provides that NMG will supply 18,000 tonnes per year of its future production of anode material for seven years. Panasonic will also invest US$25 million in equity in the company to support the development of the Saint-Michel-des-Saints graphite mine and the Bécancour processing plant.
Further investments from partners are planned, NMG said. The two agreements represent 85% of the anode material production planned at Bécancour.
According to NMG management, these two agreements will give the company better visibility with potential lenders and investors to continue its development which will require billions in investments.
Nouveau Monde Graphite stock was up 20% at midday, at $3.40. Over the past year, the stock has fluctuated between $2.55 and $7.85.