Canadian miner Noveau Monde Graphite Inc. (NMG) has announced it has signed a multi-year supply agreement General Motors Holdings, a subsidiary of General Motors.
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GM will invest US$150 million in two tranches to support the construction of the second phase of NMG’s Matawinie Mine and Becancour battery material plant.
Under the supply deal, NMG will provide 180,000 tonnes per year of refined graphite a year to GM.
The initial term is six years once the plant reaches full production.
Arne H. Frandsen, Chair of NMG, said: “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.”
Jeff Morrison, Vice President, Global Purchasing and Supply Chain at GM, said: “Our collaboration with NMG is a milestone for the industry, and in our ongoing development of a more sustainable and resilient battery supply chain.”
NMG’s deal with GM coincides with a parallel offtake agreement with Panasonic Energy, starting with a payment of US$25 million.
Panasonic said it intends to further finance together with potential co-investors an amount valued at about US$150 million.
