Business
Nouveau Monde Graphite Provides a Quarterly Update amid Favorable Shift in Battery Material Market Conditions
MONTRÉAL / May 13, 2022 / Business Wire / Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) completed another quarter
About this update from Nouveau Monde Graphite Inc
[{"type":"text","content":"MONTRÉAL / May 13, 2022 / Business Wire / Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) completed another quarter of diligent progress towards the establishment of what is projected to be North America’s largest and first fully integrated ore-to-battery-material natural graphite production in a context of accelerated growth in the battery space and sustained pressure on supply chains. NMG maintained its focus on the completion of its Phase-1 production line with the construction of its coating unit and the advancement of its Phase-2 operations through process optimization, engineering, procurement planning, preparatory work and updated economics modelling. New variants of COVID-19 forcing lockdowns in China, the Russia-Ukraine war as well as continued consumer enthusiasm for cleantech are creating significant pressure on raw materials sourcing for battery and electric vehicle (“EV”) manufacturers. As supplies tighten, demand continues to increase, with now more than 6,200 GWh of global lithium-ion battery production capacity expected by 2031 (Benchmark Mineral Intelligence, April 2022). Correspondingly, projections forecast a flake graphite deficit of nearly 2 million tonnes per annum (“tpa”) by the end of the decade. Arne H Frandsen, Chair of NMG, commented: “These dynamics demonstrate the urgency to invest in advanced materials production to serve tomorrow’s economy. Manufacturers and governments are now grasping the importance of critical minerals, local production, rapid commercialization and ESG-minded businesses. This represents a springboard for NMG’s development as the Company prepares for the deployment of its large Phase-2 integrated operations. NMG is ideally positioned in this context to provide a carbon-neutral, reliable and sizeable alternative to Chinese supplies.” Products Development and Market Current market conditions combined with engagement reaping from NMG’s marketing program have led to enhanced activities with potential tier-1 customers in 2022 with a view to securing a long-term cornerstone offtake agreement for its anode material. Production at Phase-1 facilities and testing at NMG’s new laboratory enable the supply of graphite products in a variety of specifications to meet the individual requirements of each manufacturer. NMG has advanced into the qualifi...