Canadian graphite developer Nouveau Monde Graphite (NMG) has entered into a framework agreement with Panasonic Energy, establishing the terms of the commercial relationship between the parties to enable the next development steps of NGM’s ore-to-battery-market integrated graphite project, in Quebec.

The companies also signed an offtake agreement for a significant portion of NMG’s active anode material out of its fully integrated “ore-to-anode-material” facilities.

In addition, NGM announced an investment of $50-million from Mitsui, Pallinghurst and Investissement Quebec to support the next operational milestones for the project financing activities on both the Matawini mine and the Becancour battery material plant.

Mitsui will subscribe for $25-million, while Pallinghurst and Investissement Quebec will each subscribe for $12.5-million.

NMG plans to use the proceeds from the investment to support the finalisation of the design, operation, marketing, and corporate parameters of Phase 2 Matawinie and Bécancour plant.

The intention is to proceed with project financing and the final investment decision (FID) on both Matawinie and Bécancour once that optimisation phase is completed and all operational variables are well understood. Based on current information, NMG anticipates a 28-month construction period following FID to bring its operations to commercial production.

Panasonic Energy president and CEO Kazuo Tadanobu said that the strategic partnership with NMG would allow it to explore the possibility of establishing an environmentally friendly supply chain in North America.

“As a manufacturer of EV lithium-ion batteries with the largest share of the North American market, given our leading technology and depth of experience, we aim to continue driving the growth of the industry and accelerating toward a decarbonised society,” said Tadanobu.

NGM chairperson Arne Frandsen commented that the partnership with Panasonic Energy and Mitsui – two blue-chip leaders of the industry – should further secure the company’s position in the battery materials space.

“More than ever, we will continue to vigorously increase our relevance in the North American market, benefitting from US and Canadian legislation supporting locally produced batteries.”