- Battery metal stock Nouveau Monde Graphite rallied on two significant deals struck with major corporations
- The company signed a six-year supply agreement with General Motors to provide 18,000 tonnes per annum (tpa) of its expected Phase-2 active anode material output upon reaching full production
- Nouveau Monde signed a similar offtake deal with Panasonic Energy to supply 18,000 tpa of its planned Phase-2 active anode material production for seven years
- Nouveau Monde Graphite stock last traded at C$3.40 per share
Battery metal stock Nouveau Monde Graphite (TSXV:NOU) rallied on two significant deals struck with major corporations.
The company signed a six-year supply agreement with General Motors Holdings LLC, a wholly owned subsidiary of General Motors Co. (NYSE: GM), to provide 18,000 tonnes per annum (tpa) of its expected Phase-2 active anode material output upon reaching full production.
The two companies also signed a subscription agreement where GM is committing to a US$150 million equity investment in Nouveau Monde to develop what is projected to be the first fully integrated natural graphite active anode material project of its kind in North America for the electric vehicle (EV) and lithium-ion battery market.
In a news release, 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. From our assembly plants and battery cell plants in the U.S., to our investments across the supply chain, we are developing a North American EV ecosystem aimed at benefiting consumers, expanding economic opportunity, and creating a competitive advantage for GM.”
Nouveau Monde signed a similar offtake deal with Panasonic Energy Co. Ltd., a wholly owned subsidiary of Panasonic Holdings Corp. (TYO:6752), to supply 18,000 tpa of its planned Phase-2 active anode material production for seven years.
The company also signed a subscription agreement with Panasonic to receive a US$25-million equity investment to support its Phase-2 operations – the Matawinie Mine and the Bécancour Battery Material Plant.
A media statement going deeper into this news quoted the company’s chair, Arne H Frandsen: “We have found in Panasonic Energy more than a long-term tier-1 customer, we have found a true partner who shares our vision for a decarbonized future and a striving North American integrated battery industry.”
Nouveau Monde Graphite Inc. is specialized in the exploration, evaluation and development of mineral properties in Québec.
Nouveau Monde Graphite stock closed up 21.43 per cent to trade at C$3.40 per share. Its stock is up 27.44 per cent this week and has risen 1,260 per cent over the past five years.
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