powerbattles
9 months ago
NMG Announces Offtake Agreement with GM for Canadian Graphite and US$150 Million Equity Investment
6:30 AM ET 2/15/24 | BusinessWire
NMG is Developing What is Projected to Be the First Fully Integrated Source of Natural Graphite Active Anode Material in North America
+ NMG and GM have agreed to sign a multiyear supply agreement for 18,000 tonnes per annum of active anode material, covering a significant portion of NMG's expected Phase-2 integrated production, from graphite ore to battery materials.
+ GM commits to a US$150 million investment in two tranches, subject to certain closing conditions, to support advancement and ultimately construction of NMG's Phase-2 operations.
+ Announcement coincides with parallel offtake agreement with Panasonic Energy, which combined with GM's Supply Agreement, covers approximately 85% of NMG's planned active anode material production at its Phase-2 Bécancour Battery Material Plant.
+ GM's Tranche 1 Investment and Supply Agreement support NMG's execution plan for its Phase-2 Matawinie Mine and Bécancour Battery Material Plan, marking a significant milestone toward a subsequent tranche investment of up to an additional US$275 million in the aggregate from anchor customers, subject to certain conditions.
+ Collaboration provides GM with a source of carbon-neutral active anode material to support its EV production, adding to GM's progress in developing a more sustainable and resilient North American-focused EV supply chain.
+ Graphite is a key battery raw material, making up more than 95% of the anode side of lithium-ion batteries for EVs and clean energy storage systems.
+ Shareholders, analysts, and media are invited to attend an Investor Briefing today at 10:30 a.m. ET hosted by NMG's Management Team via webcast.
MONTRÉAL--(BUSINESS WIRE)--February 15, 2024--
Nouveau Monde Graphite Inc. ("NMG" or the "Company") (NYSE: NMG, TSX.V: NOU) and General Motors Holdings LLC ("GM"), a wholly owned subsidiary of General Motors Co. (NYSE: GM), have agreed to sign a supply agreement (the "Supply Agreement") upon closing of the Tranche 1 Investment, in which NMG will provide 18,000 tonnes per annum ("tpa") of its expected Phase-2 active anode material output to GM upon reaching full production for an initial term of six years. In complement to the Supply Agreement, NMG and GM entered into a subscription agreement (the "Subscription Agreement") in which GM commits an aggregate US$150 million equity investment in NMG, subject to certain closing conditions, to develop what is projected to be the first fully integrated natural graphite active anode material project of its kind in North America; a local, carbon-neutral, reliable, sizeable, and ESG-driven source of natural graphite for the electric vehicle ("EV") and lithium-ion battery market.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240214552719/en/
GM's all-electric Cadillac 2026 VISTIQ. (Photo: Business Wire)
GM will make an initial US$25 million equity investment in NMG (the "Tranche 1 Investment") to support the advancement of NMG's Phase-2 operations -- the Matawinie Mine and the Bécancour Battery Material Plant -- in line with GM's battery manufacturer's specifications. GM also commits to subscribe for a further US$125 million of equity upon the successful completion of conditions precedent and a positive final investment decision ("FID") (the "Tranche 2 Investment" and together with the Tranche 1 Investment, the "Transaction").
Arne H Frandsen, Chair of NMG, declared: "We welcome GM as a shareholder, invested in our robust North American commercial plan as well as our ESG commitments to responsible production and partnered development with First Nations and communities. On behalf of the Board of Directors, I commend NMG's team for their outstanding work in defining what is set to become a thriving relationship providing certainty of supply for GM, a roadmap to value creation for stakeholders, and a robust foundation for growth for shareholders."
Jeff Morrison, Vice President, Global Purchasing and Supply Chain at GM, stated: "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 U.S., to our investments across the supply chain, we are developing a North American EV ecosystem aimed at benefiting consumers, expanding economic opportunity, and creating a competitive advantage for GM."
Eric Desaulniers, Founder, President, and CEO of NMG, reacted: "From neighbours in Bécancour to now business partners, GM and NMG align on a vision for a striving and local integrated supply chain, from ore to EVs. North America is rich in resources, manufacturing capacity, talents, and innovation. We are leveraging these ingredients to drive a zero-emission future. Today marks a momentous milestone for NMG, highlighting the progress made towards our Phase 2 and the Company's sound business plan of becoming North America's largest fully integrated natural graphite active anode material producer to serve the booming Western battery and EV market."
More than 95% of the anode side of EV batteries is made from graphite, making it the most demanded raw materials of all battery metals (Benchmark Mineral Intelligence, January 2023). 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 GM's EVs.
With a confirmed multiyear supply commitment from GM supplemented with the Tranche 1 Investment, NMG has now the means and technical parameters in hand to advance engineering of the Company's Phase-2 Bécancour Battery Material Plant. This plant is planned to be built within the same industrial park as GM and POSCO Future M's Cathode Active Material ("CAM") processing facility, the CA$600-million Ultium CAM plant currently in construction.
Today's announcement also supports NMG's engagement with potential lenders, strategic investors, and governments with greater visibility on bankability for the project financing linked to a positive FID decision for the Company's integrated Phase-2 Matawinie Mine and Bécancour Battery Material Plant. Lenders' input has been provided throughout discussions with GM to facilitate a successful financing at FID.
Supply Agreement
The Supply Agreement provides for supply of a volume of 18,000 tpa, once NMG reaches full production, of active anode material by NMG to GM for an initial 6-year term from the commencement of the Company's Phase-2 production. The sales will be based on an agreed upon price formula linked to future prevailing market prices as well as a pricing mechanism to satisfy project financing ratios and ensure stable procurement for GM. The Supply Agreement is subject to conditions precedent which are standard for a project of this nature. The Supply Agreement contains standard termination rights for an agreement of this nature.
Strategic Investment & Investor Rights Agreement
In connection with the Tranche 1 Investment, GM has agreed to subscribe for 12,500,000 common shares in the capital of NMG (the "Common Shares") and 12,500,000 common share purchase warrants (the "Warrants") for aggregate proceeds of US$25 million. Such Warrants are generally exercisable in connection with the Tranche 2 Investment at FID in accordance with their terms. Each Warrant will entitle the holder thereof to acquire one Common Share ("Warrant Share") at a price per Warrant Share equal to the lower of (i) US$2.38 per Common Share, and (ii) the amount in US Dollars per Common Share equal to the closing price of the Common Shares on the trading day immediately following the date on which the Tranche 1 Investment is announced. The exercise of the Warrants is subject to certain ownership limitations.
NMG will use the net proceeds from the Tranche 1 Investment for the development of the Phase-2 Matawinie Mine and Bécancour Battery Material Plant.
NMG and GM will also enter into an investor rights agreement (the "Investor Rights Agreement") which includes registration rights at the closing of the Tranche 1 Investment. Pursuant to the Investor Rights Agreement, the GM securities will be subject to a "lock-up" for a period of 18 months from the date of the Tranche 1 Investment. The Investor Rights Agreement also provides GM with certain rights relating to its investment in NMG, including certain board nomination and anti-dilution rights. Copies of the Subscription Agreement, the Offtake Agreement, and the Investor Rights Agreement will be available on the Company's page on SEDAR+ www.sedarplus.ca and on EDGAR at www.sec.gov, and the summary of the such agreements contained herein is qualified in its entirety by the reference to such documents.
NMG's Active Anode Material
Thanks to active technical engagement between the parties, active anode material produced at NMG's Phase-1 facilities has been supplied to and tested by GM's battery manufacturer to confirm alignment with its distinct specifications and quality standards.
NMG's fully integrated production in Québec, Canada, from ore to active anode material, provides guarantee of a local, traceable, and reliable source for GM's supply chain. The Supply Agreement integrates sourcing requirements under the Inflation Reduction Act's consumer EV tax credit provisions, a condition aligned with NMG's localization and value chain design.
NMG's active anode material has demonstrated minimal environmental footprint in an ISO-compliant life cycle assessment thanks to the Company's planned all-electric operations powered by renewable energy combined with clean processing technologies. NMG has also been identified as "Industry Leading" in Benchmark Mineral Intelligence's natural graphite sustainability index, the only producer to have been qualified in the category following a comprehensive examination of ESG practices, transparency, and engagement.
2024-02-15 11:30:00 GMT NMG Announces Offtake Agreement with GM for -2-
Decarbonization efforts, trade regulations, and recent geopolitical developments reaffirm the importance of establishing of a local, resilient, and ESG-driven supply chain of graphite to support battery and EV production. NMG is targeted to become the largest natural graphite producer in North America, fully integrated from ore to active anode material, and with demonstrated sustainability performance.
Complementary Information
NMG has also announced having entered a multiyear binding offtake agreement with Panasonic Energy Co., Ltd. and a private placement with Panasonic Holdings Corporation. Other strategic investors have also concurrently committed to an investment of US$37.5 million in NMG via a private placement. Additional information regarding such transactions is available on the Company's website, SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.
Shareholders, analysts, and members of the media are invited to attend a webcast Investor Briefing this morning, Thursday, February 15, 2024, at 10:30 a.m. ET. Hosted by President and CEO Eric Desaulniers with the participation of NMG's Management Team, the briefing will entail a technical presentation followed by a question-and-answer session. Registration should be completed prior to the start of the briefing at: https://us06web.zoom.us/webinar/register/WN_VmhZvajOQJ2yICWrk9ySzQ.
A brief interview with Eric Desaulniers on this announcement is also available for viewing here: https://youtu.be/kRkK3pPbqn4. Members of the media may download high-resolution files at https://we.tl/t-t9Nwt9RiQR and make additional interview or information requests to Julie Paquet, Vice President, Communications & ESG Strategy at NMG.
Completion of the transaction remains subject to customary regulatory approvals, including approval of the TSX Venture Exchange and NYSE, shareholder approval in respect of the Tranche 2 Investment, and other customary closing conditions. Copies of the Subscription Agreement, the Offtake Agreement, and the Investor Rights Agreement will be available on the Company's page on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in Québec, Canada, for the growing lithium-ion and fuel cell markets. With enviable ESG standards, NMG aspires to become a strategic supplier to the world's leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability. www.NMG.com
About GM
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at www.gm.com.
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futrcash
2 years ago
NMG Files Preliminary Economic Assessment for the Uatnan Mining Project Amidst Positive Market Conditions and Strengthens its Management Team
February 27 2023 - 07:00AM
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+ Preliminary economic assessment of the Uatnan Mining Project demonstrates attractive economics with an indicative NPV of C$ 2,173 million for a targeted production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine, making it one of the world’s largest graphite projects in development.
+ As lithium-ion battery production points to 8 TWh of capacity by 2030, the Uatnan Mining Project provides NMG with a robust and sizeable expansion plan for its Phase 3 in line with the Company’s commercial discussions with EV and battery manufacturers.
+ NMG’s leadership team to engage with the marketplace and investment community via upcoming participation at BMO Global Metals, Mining & Critical Minerals Conference, PDAC 2023 Convention and the Annual ROTH Conference.
+ Jean Cayouette appointed as Vice President, Metallurgy & Process, complementing NMG’s technical team with over 30 years of experience in the mining industry looking after the design, start-up, and optimization of various mineral processing plants.
Following the publishing of results on January 10, 2023, Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) has filed the preliminary economic assessment (“PEA”) for the Uatnan mining project (the “Uatnan Mining Project”) located in Québec, Canada, with the securities commissions and regulatory authorities in Canada and the U.S. The PEA, conducted by engineering firms BBA Inc. (“BBA”) and GoldMinds Geoservices Inc. (“GMG”) according to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), was carried out in collaboration with Mason Graphite Inc. (“Mason Graphite”) (TSX.V: LLG, OTCQX: MGPHF) as the Uatnan Mining Project leverages the Lac Guéret deposit wholly-owned by Mason Graphite and subject to an investment agreement and option and joint venture agreement with NMG.
The PEA shows strong economics for NMG’s updated operational parameters and production volumes targeting the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine (“LOM”). The proposed Uatnan Mining Project is currently one of the largest projected natural graphite productions being developed in the world. Consistent with NMG’s vertical integration strategy, the Uatnan Mining Project’s contemplated production would serve as feedstock for battery materials advanced manufacturing, providing refining expansion opportunity, increasing potential margins, and enhancing the Company’s growth profile.
In today’s dynamic market, the Uatnan Mining Project aligns with NMG’s commercial engagement amidst electric vehicle (“EV”) adoption reaching unprecedented levels with 10.3 million vehicles sold in 2022 (Rho Motion, February 2023). With 7,940 GWh of global lithium-ion battery production capacity projected by 2030, demand for advanced materials is set to increase up to fivefold, with graphite outpacing the other battery metals (Benchmark, January 2023) at 10,363,000 tonnes per annum for that market segment alone.
Arne H Frandsen, Chair of NMG, declared: “The market is actively searching for alternative sources of graphite, in significant volumes, to reduce its dependence on Chinese-controlled supply chains. NMG’s integrated operating model, from ore to battery materials, caters to western world’s EV and battery manufacturers with a turnkey, scalable, and ESG-driven production. The Uatnan Mining Project fits perfectly into the Company’s development plan, providing a large resource to complement our Phase-2 Matawinie Mine and Bécancour Battery Material Plant. Now more than ever, NMG is demonstrating its leadership in striving to establish North America’s largest natural graphite production to serve the energy transition.”
PEA Results: The Potential of the Uatnan Mining Project
NMG and its consultants revisited the fundamentals for the property development with a view to aligning the Uatnan Mining Project with today’s market opportunity. Design of the Uatnan Mining Project has been tailored to the needs of the battery and EV market, orienting production volumes for beneficiation in order to produce active anode material.
The Uatnan Mining Project optimizes the Mineral Resources (see Table 2) and aims to expand the original mining project tenfold by targeting the production of approximately 500,000 tonnes of graphite concentrate per annum. It would be operated as a conventional open pit with a concentrator near the deposit. In line with NMG’s responsible mining approach, plans include considerations for high standards in term of tailings management, progressive site closure with backfilling of the pit and a transition to fleet electrification. Québec’s affordable clean hydropower underpins the Uatnan Mining Project’s economic structure and supports NMG’s undeterred carbon-neutrality commitment.
Table 1: Operational Parameters of the Uatnan Mining Project
OPERATIONAL PARAMETERS
LOM
24 years
Nominal annual processing rate
3.4 M tonnes
Stripping ratio (LOM)
1.3:1
Average grade (LOM)
17.5% Cg
Average graphite recovery
85%
Average annual graphite concentrate production (LOM)
500,000 tonnes
Finished product purity
94% Cg
Cautionary Note: Graphite is expressed in graphitic carbon (“Cg”). The PEA is preliminary in nature and includes Inferred Mineral Resources, considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves have not demonstrated economic viability. Additional trenching and/or drilling will be required to convert inferred mineral resources to indicated or measured mineral resources. There is no certainty that the resources development, production, and economic forecasts on which this PEA is based will be realized.
Table 2: Current Pit-Constrained Mineral Resource Estimate
IN-PIT CONSTRAINED MINERAL RESOURCES
Tonnes (Mt)
Grade (% Cg)
Cg (Mt)
Measured 5.75% < Cg < 25%
15.65
15.2
2.38
Measured Cg > 25%
3.35
30.6
1.02
Total Measured
19.02
17.9
3.40
Indicated 5.75% < Cg < 25%
40.29
14.6
5.89
Indicated Cg > 25%
6.33
31.6
2.00
Total Indicated
46.62
16.9
7.89
Indicated + Measured 5.75% < Cg < 25%
55.94
14.8
8.27
Indicated + Measured Cg > 25%
9.70
31.2
3.03
Total Measured + Indicated
65.64
17.2
11.30
Inferred 5.75% < Cg < 25%
15.35
14.9
2.28
Inferred Cg > 25%
2.47
31.8
0.79
Total Inferred
17.82
17.2
3.07
Notes :
The Mineral Resources provided in this table were estimated by M. Rachidi P.Geo., and C. Duplessis, Eng., (QPs) of GoldMinds Geoservices Inc., using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, market or other relevant issues. The quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has not been sufficient work to define these Inferred Mineral Resources as indicated or Measured Mineral Resources. There is no certainty that any part of a Mineral Resource will ever be converted into Mineral Reserves.
The Mineral Resources presented here were estimated with a block size of 3mE x 3mN x 3mZ. The blocks were interpolated from equal-length composites (3 m) calculated from the mineralized intervals.
The Mineral Resource estimate was completed using the inverse distance to the square methodology utilizing three runs. For run 1, the number of composites was limited to ten with a maximum of two composites from the same drillhole. For runs two and three the number of composites was limited to ten with a maximum of one composite from the same drillhole.
The Measured Mineral Resources classified using a minimum of four drillholes. Indicated resources classified using a minimum of two drillholes. The Inferred Mineral Resources were classified by a minimum of one drillholes.
Tonnage estimates are based on a fixed density of 2.9 t/m3.
A pit shell to constrain the Mineral Resources was developed using the parameters presented in the PEA. The effective date of the current Mineral Resources is January 10, 2023.
Mineral Resources are stated at a cut-off grade of 5.75% C(g).
Estimates currently being at the market's peak as influenced by inflationary trends, NMG and its consulting firms have refined design, engineering, and construction parameters to enable cost optimization and competitive pricing.
Table 3: Economic Highlights of the Uatnan Mining Project
ECONOMIC HIGHLIGHTS
Uatnan Mining Project
Pre-tax NPV (8% discount rate)
C$ 3,613 M
After-tax NPV (8 % discount rate)
C$ 2,173 M
Pre-tax IRR
32.6%
After-tax IRR
25.9%
Pre-tax payback
2.8 years
After-tax payback
3.2 years
Initial CAPEX
C$ 1,417 M
Sustaining CAPEX
C$ 147 M
LOM OPEX
C$ 3,236 M
Annual OPEX
C$ 135 M
OPEX per tonne of graphite concentrate
C$ 268/tonne
Concentrate selling price
US$ 1,100/tonne
Annual revenues from Uatnan production
US$ 550,000,000
All costs are in Canadian dollars with the exception of the graphite sale price which is provided in US dollars.
The PEA shows that the Uatnan Mining Project is technically feasible as well as economically viable. With natural flake graphite expected to enter a structural deficit in 2023 due to the continued growth of the lithium-ion battery sector (Benchmark Mineral Intelligence, December 2022), market perspectives and NMG’s active commercial discussions indicate favorable conditions for commercializing the Uatnan Mining Project production.
On the basis of these positive results, NMG intends to launch an updated feasibility study in compliance with the option and joint venture agreement signed with Mason Graphite.
NMG is committed to extending its approach of open and proactive engagement with Indigenous Peoples and local stakeholders to the Uatnan Mining Project. The Company plans to maintain a transparent dialogue with the Innu First Nation of Pessamit as it advances the project development to ensure the respect of their rights, their culture, way of life and spirituality, the inclusion of their perspective and traditional knowledge, as well as the protection of the environment. NMG also pledges to expand its relationships with stakeholders from all horizons to foster mechanisms for collaboration and shape a project generating shared value.
The PEA entitled “NI 43-101 Technical Report – PEA Report for the Uatnan Mining Project”, with an effective date of January 10, 2023, was filed on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on NMG’s website. PEA results as outlined in this press release were issued on January 10, 2023.
Scientific and technical information presented in this press release was reviewed and approved by André Allaire, P.Eng. (BBA), Jeffrey Cassoff, P.Eng. (BBA), Vera Gella, P.Eng. (BBA), Claude Duplessis, P.Eng. (GoldMinds Geoservices), and Merouane Rachidi, P.Geo. (GoldMinds Geoservices) Qualified Persons as defined under NI 43-101.
Jean Cayouette
NMG appointed earlier this month Mr. Jean Cayouette, Eng., Vice President, Metallurgy and Process in replacement of Alain Dorval, who recently retired. A graduate of Laval University in mining and metallurgical engineering, Mr. Cayouette has over 30 years of experience in the mining industry. The design, start-up and optimization of various mineral processing plants have contributed to his technical and management experience in the fields of metallurgy, operations, maintenance, and environment. He is an accomplished corporate leader in operational optimization, mine site reclamation as well as sustainable development initiatives.
Eric Desaulniers, Founder, President and CEO of NMG, added: “The Uatnan PEA results are extremely positive for our shareholders, our potential customers and stakeholders in the Manicouagan region. NMG is now shifting gears as it progresses rapidly on a multi-lane expressway, advancing all three phases of its business strategy simultaneously to capture a historical market opportunity. Bringing on expertise and depth such as Jean’s provides our technical teams with solid backup to migrate Phase 1 operations into Phase 2 commercial production, while informing the next stages of development for the Uatnan Mining Project. I’m delighted to see another talented leader joining Team Nouveau Monde in our quest to drive sustainability into the battery/EV space. Bienvenue Jean! Happy retirement Alain!”
NMG Engagement with the Marketplace and Investment Sector
Critical minerals, the energy transition and NMG’s robust business strategy are gaining attention both in the marketplace and within investment circles. The Company’s leadership team is participating in BMO Global Metals, Mining & Critical Minerals Conference until March 1, 2023, to position NMG’s attractive integrated production model and associated opportunities.
Executives will join some 30,000 attendees at PDAC 2023 Convention in Toronto, Canada, from March 5 to 8, 2023, a world-renowned mineral exploration and mining event. NMG leaders will be at booth IE2830 and engage in a number of special events. Eric Desaulniers, President & CEO, will also present at the Critical Metals: Battery Materials Processing session on Tuesday, March 7, 2023, at 3:40 p.m.
And from March 12-14, 2023, NMG representatives will participate in the 35th Annual ROTH Conference in California, an event dedicated to targeted growth companies.
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in Québec, Canada for the growing lithium-ion and fuel cell markets. With low-cost operations and enviable ESG standards, NMG aspires to become a strategic supplier to the world’s leading battery and automobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability. www.NMG.com
Edgenation
4 years ago
NEWS!
Nouveau Monde Announces Phase 2 of What Is Planned to Become North America’s Largest Fully Integrated Anode Material Produc...
March 11 2021 - 08:00AM
GlobeNewswire Inc.
Nouveau Monde Graphite Inc. (“Nouveau Monde” or the “Company”) (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to announce the completion of a Front-End Loading engineering analysis (“FEL-1”) for Phase 2 of its large-scale commercial lithium-ion anode material project in Bécancour, Québec, Canada as it continues to execute its strategy of becoming the Western World’s largest producer of high-quality anode materials to be used mainly in batteries for electrical vehicles and renewable energy storage. As it expands, Nouveau Monde preserves its firm commitment to carbon neutrality.
Arne H Frandsen, Chairman of Nouveau Monde, commented: “Nouveau Monde is firmly on its way to become one of the world’s most important anode materials producers, delivering high quality anode materials from our sophisticated processing and beneficiation plants in Bécancour. Our successful upstream integration with our Matawinie mineral project is designed to ensure that we have access to the right quality feedstock for decades to come. Thanks to Nouveau Monde’s team of local and internationally acclaimed experts and professionals, we are continuing to move forward at speed!”
Eric Desaulniers, President and CEO of Nouveau Monde, added: “We founded Nouveau Monde in 2011 with the vision of developing the largest and best-in-class graphite-based anode material supplier in North America. For the past five years, we have specifically focused on developing the processing know-how and skills internally. We have hired highly qualified professionals from around the world, creating a multifaceted team of anode materials experts. This team has in turn engaged with multiple other local and international experts to establish our technologies to produce high-quality lithium-ion anode material on a large scale.
Today, we are proud to announce Phase 2 of our effort, with a projected low operating cost profile. This next phase will continue to comply with Nouveau Monde’s high ESG standards and will benefit from Québec’s green and inexpensive hydroelectricity as our exclusive energy source. Our significant forecasted incremental annual operating profit potential is a testimony that it is possible to embrace sustainable development and profitability to the benefit of all stakeholders.
It is essential for North America to develop a fully integrated supply chain of high-quality battery materials that are produced at meaningful scale, with the lowest carbon footprint, with strict traceability compliance while maintaining cost competitiveness at all times.”
Figure 1: 3D rendering of Nouveau Monde's Bécancour VAP project
https://www.globenewswire.com/NewsRoom/AttachmentNg/1dc39b48-7fc6-4501-b867-8875b397a849
Projected Capital and Operating Costs for Phase 2
The FEL-1 concludes that a production of 42,000 tpa of anode material and 3,000 tpa of purified flakes can be achieved with the construction of a brand-new state-of-the-art facility on Nouveau Monde’s industrial site of 200,000 m2 and supported by its existing Phase 1 plant infrastructure. The FEL-1 includes a review of all environmental regulations and permits, the project schedule, product specifications definition, stakeholders’ analysis, the capital expenditure budget and projected operating costs. Nouveau Monde’s site in Bécancour is strategically situated for large-scale anode material production, with proximity to potential customers, access to key utilities (e.g., water, hydropower, gas), adjacent to a chlor-alkali producer which provides access to key consumables, a skilled workforce and an adjacent deep-water international port on the St. Lawrence River.
ANNUAL OPERATING METRICS 45 ktpa FACILITY
ktpa
Processed natural graphite 60
Anode material (CSPG) production 42
Purified jumbo flakes production 3
Micronised graphite by-product 14
Chloride by-product 1
Table 1: Annual operating metrics
CAPEX FINANCIAL METRICS 45 ktpa FACILITY
In M US$ IN US$ / tonne
Direct cost 359 7,988
Indirect cost 103 2,280
Contingency 83 1,848
Total CAPEX 545 12,116
Table 2: Initial capital expenditure estimate (excluding Owner's cost, provision for escalation and taxes & duties)
OPEX FINANCIAL METRICS 45 ktpa FACILITY
In M US$ IN US$ / tonnes
Anode Revenue 300 7,152
Material All-in cost excluding 91 2,167
(CSPG) raw material
42 kt production Raw material 23(1) 77(2) 544(1) 1,841(2)
Operating Margin 186 132 4,440 3,144
Purified Revenue 18 6,000
Jumbo All-in cost excluding 3 1,069
Flakes raw material
3 kt production Raw material 1(1) 8(2) 414(1) 2,631(2)
Operating Margin 14 7 4,517 2,300
Total Operating Margin – 45 ktpa facility 200 139 4,445 3,088
Table 3 :Projected operational expenditures
(1) Assumes a transfer pricing at Matawinie mineral project FS 43-101 operating cost plus transportation cost to Bécancour
(2) Assumes a transfer pricing at Matawinie mineral project FS 43-101 sales price plus transportation cost to Bécancour
The Capex and Opex prepared for this FEL-1 are based on a Class 4 type estimate as per the American Association of Cost Engineers (“AACE”) International Practice 18R-97 with a target accuracy of ±15%. Although some individual elements of the Capex may not achieve the target level of accuracy, the overall estimate falls within the parameters of the intended accuracy. The Capex is estimated at US$545 million including the material, equipment, labour and freight required for the plant, as well as all infrastructure and services necessary to support the operation. The estimate excludes the owner’s cost, provision for escalation and all duties and taxes.
Bécancour VAP Project Financing Strategy
The Company’s strategy is to finance the Bécancour VAP project with a structure involving approximately two thirds comprised of non-dilutive financial instruments and the remaining one third of equity financing. The non-dilutive financial instruments that are contemplated by the Company are a combination of bank loans, structured debt, forward payments on production and royalty streams. The Company’s largest shareholder, The Pallinghurst Group, is fully supportive of the Bécancour VAP project. No assurance can be given that any such additional financing will be available or that, if available, it can be obtained on terms favourable to the Company. The failure to obtain additional financing on favourable terms, or at all, could have a material adverse effect on the ability of the Company to complete the construction of the Bécancour VAP project.
Project Timeline
Given the strong economics revealed in the FEL-1, Nouveau Monde has commenced a FEL-2 pre-feasibility study, based on the results from the demonstration modules, which is expected to be completed in the first half of 2022. The FEL-1 evaluated various strategies to optimise the deployment of the project, including advancing directly to an enhanced FEL-2 program that includes detailed engineering of certain portions of the project and a modular construction and commissioning sequence enabling an initial production capacity to be available earlier, while construction activities are being completed. The project development pathway beyond detailed design and initiation of the construction phase will be determined by financial partnerships and end-customer commitments. It is currently anticipated by management that the first production lines of the Phase 2 Bécancour VAP project will commence their commissioning in Q1 2025.
Figure 2: Bécancour VAP Project prospective timetable
https://www.globenewswire.com/NewsRoom/AttachmentNg/0bcd81c4-ffa4-48dc-bdaa-7933b1e614a7
De-Risking by Building Significant Phase 1 Plant and Strategic R&D
The production of purified, coated spherical graphite used as anode material in lithium-ion battery involves three major process steps, namely: shaping, purification and coating. Since 2016, the Company has committed approximately US$27 million in process development and de-risking by running large-scale bench test and building demonstration units. Since early 2020, Nouveau Monde has been operating two commercial scale shaping units in which it processed nearly 1,000 batches to confirm the optimised process parameters and equipment performance profile to be implemented to produce systematically within customers’ specifications. Significant equipment improvements and modifications were implemented on-site to achieve an optimum operating throughput and overall yield while maintaining constant in-specs quality material. Ongoing internal R&D programs on the shaping process are targeting manufacturing excellence by the enhancement of fundamental understanding of fluid dynamics and air flows by using as-built scan, numerical modelling and adoption of advanced automation and artificial intelligence technologies.
As for the Phase 1 purification sector of the facility, Nouveau Monde developed its proprietary thermochemical process that is currently being deployed at a 1,500 tpa nameplate capacity in Olin’s facility adjacent to the Company’s industrial site, with a commissioning scheduled to start in the first half of 2021 (Construction Commenced of Phase 1 Purification Facility for Lithium-Ion Battery Material in Bécancour and the Land for Phase 2 Expansion Is Now Successfully Acquired).
The final process step to produce anode material consists of coating the purified spherical graphite with a carbon-based material to minimise the surface area and enhance the stability of the solid electrolyte interface. Nouveau Monde is currently in the detailed engineering phase and has initiated the procurement to build the first module of the Phase 1 2,000 tpa capacity plant that is scheduled to be commissioned early in 2022 (Nouveau Monde Advances its 2,000-Tonne Coated Spherical Graphite Production Facility – Commissioning Set for Q1 Next Year). Nouveau Monde is of the view that its strategy of de-risking the process by investing in a rapid deployment of a first scalable-complete module will allow a faster product qualification with lithium-ion battery cell makers and more efficient and reliable engineering development.
Product Offering and Marketing
The anode material flowsheet developed by Nouveau Monde is designed to produce anode material of various particle sizes varying between 8 and 20 µm with flexibility to serve various lithium-ion battery applications. Roskill’s Fall 2020 issue reported 2019 average Chinese sales prices of US$ 7,157/tonne for CSPG with specifications similar to the anode material that is expected to be produced by Nouveau Monde. The Company is of the view that this is a fair and prudent estimate of the projected sales price for the Bécancour VAP project. Moreover, the Company and its experienced graphite marketing team is actively developing value-added opportunities for the 1 and 8 µm micronised graphite representing a valuable anode material process by-product potentially serving multiple niche applications.
In their latest February 2021 Lithium-ion Battery Megafactory assessment report, Benchmark Mineral Intelligence forecasts 562 GWh in 2025 and 937 GWh in 2030 of battery capacity in North America and Europe combined with associated graphite anode demand of 674,000 tpa and 1,124,000 tpa, respectively.
Best in Class in Reducing Supply Chain Carbon Footprint; Fully Committed to Carbon Neutrality
Nouveau Monde seeks to contribute to the decarbonisation of the economy by producing graphite materials, a required input for the production of low-carbon products, with the smallest greenhouse gas (“GHG”) footprint possible. In addition to pushing the science and technology development in order to mine and transform graphite in a sustainable and low GHG-emitting manner, the Company has pledged to offset all GHG emissions from sources it either has direct control over or may significantly influence (i.e., the Company’s Scope 1, Scope 2 and portion of Scope 3 emissions). Based on the FEL-1, the Bécancour VAP projected GHG emissions are detailed in table 4.
EMISSIONS IN METRIC TONNES CO2 EQUIVALENT (T CO2 EQ)
Source Total GHG
Scope 1
Stationary combustion N/A -
Mobile combustion N/A -
Fugitive emissions N/A -
Process emissions
partial oxidation of carbon from the furnace packing material (calcined petroleum coke) 5,760
partial oxidation of carbon from petroleum pitch in the coating process 1,975
Total Scope 1 7,735
Scope 2
Stationary combustion electricity production 300
Total Scope 2 300
Scope 3
Stationary combustion combustion of pitch-derived residual (condensed) material 4,608
Mobile combustion
transport of calcined petroleum coke 260
transport of petroleum pitch 255
Process emissions production of calcined petroleum coke 3,842
Total Scope 3 8,965
GRAND TOTAL 17,000
Table 4: Projected carbon footprint of the Bécancour VAP project
The offsetting costs are estimated at US$ 11.86/ t CO2 eq per tonne of CSPG produced and represent approximately US$ 202,000 annually. On a per product basis, this represents approximately US$ 3.83 per tonne of CSPG product and US$ 2.01 per tonne of by-product.
The forecasted GHG footprint for the Bécancour VAP project is derived from the FEL-1, its associated energy and mass balances, and the most likely procurement scenario for process inputs such as calcined petroleum coke and petroleum pitch. Nouveau Monde envisions developing and producing the cleanest anode-grade graphite material possible and is continuously striving for excellence in minimising GHG emissions and climate impact.
Nouveau Monde has ongoing R&D programs in place with professor Philippe Ouzilleau, PhD, from McGill University in Montréal to find alternate carbon sources to the petroleum-based product currently being used in the coating process with the objective of significantly reducing its carbon emissions.
Nouveau Monde also remains fully committed to achieving carbon neutrality at the Company’s level, including the Matawinie mine and concentrator in Saint-Michel-des-Saints and the Bécancour VAP project.
Co-Existence of the Matawinie Mineral Project and the Bécancour VAP Project
The FEL-1 does not impact nor alter the National Instrument 43-101 (“NI 43-101”) feasibility study filed on December 10, 2018 with regards to the Matawinie mineral project. While Nouveau Monde is of the view that there are obvious operational and financial benefits to developing a fully controlled and integrated business model, both the Matawinie mineral project and Bécancour VAP project should be considered independently from each other with regards to their economic viability. To this end, it is the intention of the Company to sell opportunistically the high-purity jumbo and large flakes produced at the Matawinie mineral project directly into third party traditional and speciality graphite markets, while the Bécancour VAP project intends to source its products, comprised of intermediate and fine flakes, from multiple sources. As a reference, the FEL-1 is based on a graphite concentrate feedstock pricing identical to a weighted average between the intermediate and fine flakes expected sales price shown at table 19.3 of the Matawinie NI 43-101 feasibility study. It is Nouveau Monde’s intention to prioritise the use of the feedstock produced at the Matawinie mineral project; however, the Company intends to source raw material from other graphite suppliers from time to time should market, or operational, conditions so justify.
Due to its modular structure, upon Phase 2 of the Bécancour VAP project successfully reaching name plate capacity, we believe it will likely be possible for Nouveau Monde to expand its capacity further. Such Phase 3 expansion is currently being analysed by management, but its implementation has not been agreed to and is entirely speculative at this point in time.
The Company will inform its stakeholders of material developments with regards to the Bécancour VAP project as required by its continuous disclosure obligations set out in Regulation 51-102.
About Nouveau Monde
Nouveau Monde is striving to become a key element in the sustainable energy revolution. The Company is working towards developing a fully-integrated source of green battery anode material in Québec, Canada. Targeting full-scale commercial operations by 2023, the Company is developing advanced carbon-neutral graphite-based material solutions for the growing lithium-ion and fuel cell markets. With low-cost operations and high ESG standards, Nouveau Monde aspires to become a strategic supplier to the world’s leading battery and auto manufacturers, ensuring robust and reliable advanced material, while guaranteeing supply chain traceability.
Media Investors
Julie Paquet
Director, Communications
+1-450-757-8905 #140
jpaquet@nouveaumonde.ca Christina Lalli
Director, Investor Relations
+1-438-399-8665
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