NMG secures Canadian government and customer offtake deals for graphite

Nouveau Monde Graphite Inc. (NYSE: NMG, TSX: NOU) announced multiple commercial agreements for its Phase-2 graphite production, including binding supply agreements with the Government of Canada and revised offtake deals with existing customers.

The Canadian government signed binding term sheets for a seven-year offtake of 30,000 tonnes per annum of graphite concentrate reserved for Canada and allied countries for strategic applications. The agreement includes 15,000 tonnes per annum on a take-or-pay basis at a fixed North American market price, subject to NMG securing similar agreements with allied countries for an additional 15,000 tonnes annually.

NMG revised its binding offtake agreement with Panasonic Energy Co., Ltd. to produce 13,000 tonnes per annum of active anode material through the company's Phase-2 integrated value chain. The production will require an estimated 25,000 tonnes per annum of graphite concentrate from the Phase-2 Matawinie Mine.

The company finalized an updated commercial agreement with Traxys North America LLC for 20,000 tonnes per annum of graphite concentrate for the refractory market, including 10,000 tonnes on a take-or-pay basis. The agreement requires Traxys board approval.

NMG is negotiating with an established anode manufacturer to secure up to 30,000 tonnes per annum of graphite concentrate over six years, with approximately 15,000 tonnes on a take-or-pay basis. In connection with these negotiations, General Motors and NMG agreed to terminate their previously announced supply and investment agreements effective November 30, 2025.

The combined agreements potentially cover nearly 100% of the future Phase-2 Matawinie Mine flake graphite volumes, according to the press release. NMG said project financing discussions have advanced with due diligence processes nearing completion and long-form term sheet negotiations ongoing ahead of lenders' credit committees.

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