As demand for battery materials continues to grow, Nouveau Monde
Graphite Inc. (“Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV:
NOU) is enhancing its production capacity for advanced graphite
solutions through investments in phase-1 operations. The Company is
deploying its business strategy to test manufacturing technologies,
refine processes, inform commercial development, and support
technical marketing and product qualification efforts targeting the
lithium-ion batteries (“LiB”) market.
Nouveau Monde’s investment in developing this
initial advanced graphite materials manufacturing platform is
supported by continued engagement with potential tier-1 customers
in the EV and battery sector. Thus far, these manufacturers, with
whom the Company is engaged in commercial discussions and/or have
signed MoUs and NDAs, represent a total projected yearly production
capacity of approximately 1 TWh by 2030 that would correspondingly
require over 1 million tonnes per annum of battery-grade
graphite.
Arne H Frandsen, Chairman of Nouveau
Monde, commented: “Nouveau Monde is executing its business
plan with rigor to provide the marketplace with the product specs
and sustainability excellence that tier-1 manufacturers are
seeking. In the global push toward decarbonization, I am confident
that our focus on technology, derisked expansion approach, and
superior commercial engagement will yield success and benefits for
all our stakeholders.”
Eric Desaulniers, Founder, President,
and CEO of Nouveau Monde, added: “We remain focused on our
commercial strategy to position Nouveau Monde as a turn-key
supplier to leading EV and battery manufacturers. Sales discussions
and product qualification have thus far reiterated the importance
of local, carbon-neutral, reliable, and ESG-rooted supply chains
for our tier-1 potential customers. We are committed to delivering
on these attributes, which are central to Nouveau Monde’s value
proposition while maintaining low-cost productivity and continually
enhancing technology development.”
For graphite concentrate to be used as anode
material, three beneficiation steps are required to reach the
optimal physical properties and performance: shaping, purification,
and coating. Nouveau Monde plans to leverage its access to the
large, high-purity Matawinie graphite deposit as feedstock for its
value-added transformation, hence capitalizing on operational
efficiency, product traceability, and greater margins from its
vertically integrated business model.
The Company’s phase-1 capacity is targeted at
2,000 tpa of anode material with scope for significant expansion in
Phase 2 to help meet the demand from battery manufacturers seeking
locally sourced and environmentally friendly materials.
Phase-1 Facilities: Increased Capacity
& Integrated Anode Material Manufacturing
Nouveau Monde’s commercial-size shaping unit has
been producing spherical graphite since Q1-2020. To support its
phase-1 expansion, the Company has collaborated with a Western
World equipment manufacturer during the past last year to test a
new shaping technology. The successful results have led Nouveau
Monde to purchase another commercial-scale module, hence doubling
its production capability. The new state-of-the-art unit should
further elevate the products’ quality and provide customers with a
greater variety of specs.
Site preparation has started at the Company’s
demonstration plant ahead of the delivery and installation. The
equipment commissioning is expected to be carried out in early 2022
for a production start and ramp up during 2022.
In parallel, Nouveau Monde has initiated test
batches at its phase-1 purification facility in Bécancour, Québec,
as it finalizes production parameters. The Company plans to start
supplying 99.95%-pure spherical purified graphite (“SPG”) to
potential customers before the end of Q3-2021. Last month, Nouveau
Monde submitted a patent application for its proprietary
thermochemical purification technology, which offers a greener and
more sustainable alternative to that currently used in traditional
anode material production.
As the third and final step in the beneficiation
for anode material, Nouveau Monde has integrated coating into its
advanced manufacturing platform. The value-added transformation
entails applying a nanometric layer of amorphous carbon on the
surface of SPG to reduce the graphite’s porosity, decrease
exfoliation, and therefore increase the performance and life span
of batteries. Laboratory testing has already validated Nouveau
Monde’s technology with demonstrated superior performance over the
anode material from Asian commercial producers.
Nouveau Monde is leveraging existing technology
for this special application and harnessing its access to
hydroelectricity to power the unit, hence reducing energy
consumption by 25% compared to current practices and improving the
coated spherical purified graphite (“CSPG”) environmental
footprint. Through its R&D program, the Company is also
validating the possibility of upgrading the co-products of the
shaping step via coating, which could benefit Nouveau Monde’s
profitability at the commercial stage.
Detailed engineering is advanced at more than
50% for the Company’s coating line, and procurement of all key
equipment was completed earlier this year. Gradual deliveries of
equipment are scheduled to arrive at the Company’s plant starting
in Q4-2021 and continue into the new year. Construction and
commissioning activities will follow accordingly, with the
objective of commencing production around the end of Q1-2022.
Phase-2 LiB Anode Material Plant:
Ongoing Feasibility Study
Production from this phase-1 anode material
beneficiation line will support the ongoing engineering of the
large-scale phase-2 battery material plant. Following positive
results of an internal FEL-1 scoping study earlier this year,
Nouveau Monde is proceeding with the complete feasibility study
with its consulting firm BBA, which is scheduled to be completed in
Q2-2022. Upon completion of the study, Nouveau Monde intends to
transition to the execution phase of the Phase 2 project on the
Company’s 200,000 m2 land parcel in the Bécancour Industrial
Park.
By expanding its advanced materials
manufacturing platform, Nouveau Monde strives to position itself as
a leading western producer capable of supplying tier-1 customers at
every step of graphite transformation. Backed by its scaled
development and proprietary technologies, the Company is actively
engaging with tier-1 EV and battery manufacturers in its effort to
negotiate a long-term cornerstone supply agreement.
About Nouveau Monde
Nouveau Monde is striving to become a key
contributor to the sustainable energy revolution. The Company is
working towards developing a fully integrated source of green
battery anode material in Québec, Canada. 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 enviable ESG standards, Nouveau Monde 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
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Cautionary Note Regarding
Forward-Looking Information All statements, other than
statements of historical fact, contained in this press release
including, but not limited to those describing future market
demand, the development plans of the Company to become the first
fully vertically integrated producer of anode battery materials,
the output and timeline of the initiatives described in this press
release, the entering into of a long-term cornerstone supply
agreement, the plans to use the Matawinie graphite as feedstock,
the Company’s business and commercial strategy, the Company’s
intended increased capacity for spherical graphite, the scheduled
completion of the feasibility study, the possible benefits of the
coating process, and those statements which are discussed under the
“About Nouveau Monde” paragraph and elsewhere in the press release
which essentially describe the Company’s outlook and objectives,
constitute “forward-looking information” or “forward-looking
statements” within the meaning of certain securities laws, and are
based on expectations, estimates and projections as of the time of
this press release. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by the Company as of the time of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. These
estimates and assumptions may prove to be incorrect. Moreover,
these forward-looking statements were based upon various underlying
factors and assumptions, including the current technological
trends, the business relationship between the Company and its
stakeholders, the ability to operate in a safe and effective
manner, the timely delivery and installation of the equipment
supporting the production, the Company’s business prospects and
opportunities and estimates of the operational performance of the
equipment, and are not guarantees of future performance.
Forward-looking information and statements are
subject to known or unknown risks and uncertainties that may cause
actual results to differ materially from those anticipated or
implied in the forward-looking information and statements. Risk
factors that could cause actual results or events to differ
materially from current expectations include, among others, delays
in the scheduled delivery times of the equipment, the ability of
the Company to successfully implement its strategic initiatives and
whether such strategic initiatives will yield the expected
benefits, the availability of financing or financing on favourable
terms for the Company, the dependence on commodity prices, the
impact of inflation on costs, the risks of obtaining the necessary
permits, the operating performance of the Company’s assets and
businesses, competitive factors in the graphite mining and
production industry, changes in laws and regulations affecting the
Company’s businesses, political and social acceptability risk,
environmental regulation risk, currency and exchange rate risk,
technological developments, the impacts of the global COVID-19
pandemic and the governments’ responses thereto, and general
economic conditions, as well as earnings, capital expenditure, cash
flow and capital structure risks and general business risks.
Unpredictable or unknown factors not discussed in this Cautionary
Note could also have material adverse effects on forward-looking
statements.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Further information regarding the Company is
available in the SEDAR database (www.sedar.com), and for United
States readers on EDGAR (www.sec.gov), and on the Company’s
website at: www.NMG.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/55f1c772-8e81-4fe4-bb03-2daf40bf4827
Contact
Julie Paquet
VP Communications & ESG Strategy
+1-450-757-8905 #140
jpaquet@nouveaumonde.ca
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