Nouveau Monde finalizes commercial deals with Cdn gov't

On October 31, 2025, after a trading halt, Nouveau Monde Graphite (NMG) announced two significant commercial agreements for its planned Phase 2 operations: 1. Revised Offtake with Panasonic Energy: NMG and Panasonic updated their binding offtake agreement. NMG will supply 13,000 tonnes per annum (tpa) of its active anode material from the Bécancour plant for an initial seven-year term. The sales price is based on a formula linked to market prices. This agreement is subject to conditions, including the successful start of commercial operations and final product qualification. 2. Offtake and Marketing with Traxys: NMG finalized a binding agreement with Traxys for 20,000 tpa of natural flake graphite concentrate from the Matawinie Mine, targeting the North American and European refractory markets. The agreement includes a firm take-or-pay commitment for 10,000 tpa over an initial seven-year term. This agreement is noted as pending Traxys board approval.

The announcement of two binding offtake agreements is materially positive. These agreements significantly de-risk the company's path to a Final Investment Decision (FID) by demonstrating clear commercial demand for its products, which is a prerequisite for securing the large-scale project financing required.

• Panasonic Agreement: This revision solidifies the commitment from a key anchor customer and tier-1 battery manufacturer. While the quantity (13,000 tpa) represents about 30% of the Bécancour plant's planned 44,100 tpa capacity (per the March 2025 Feasibility Study), it provides a crucial baseload of demand tailored to Panasonic's specifications. This clarifies the initial production ramp-up and gives confidence to potential lenders. However, the agreement remains conditional on NMG successfully commissioning the plant and qualifying its product, which is a significant technical and operational hurdle yet to be cleared.

• Traxys Agreement: This agreement is equally important as it diversifies NMG's revenue stream beyond the EV battery market. It secures a buyer for approximately 19% of the Matawinie Mine's planned 106,000 tpa concentrate output. The 10,000 tpa "take-or-pay" provision is a very strong feature, guaranteeing a revenue floor for that portion of production. This mitigates risks associated with the EV market's cyclicality and potential delays. The condition of Traxys board approval is a remaining risk, but it is typically a final formality in such processes.

Historically, NMG has systematically advanced its plan: it delivered an updated Feasibility Study in March 2025, secured over $1B in non-binding letters of interest for debt financing in June 2025, and has now converted commercial discussions into binding offtakes. These latest agreements directly address the needs of the lenders who require proof of commercial viability before committing capital. While positive, this is an expected and necessary step, not a "game-changer" like a fully funded FID announcement would be.

Nouveau Monde Graphite Inc. is a Quebec-based company focused on developing a fully integrated, carbon-neutral source of natural graphite for the electric vehicle (EV) and renewable energy storage markets.

Its flagship project is a vertically integrated operation consisting of two main components: 1. Phase 2 Matawinie Mine: An open-pit graphite mine in Saint-Michel-des-Saints, Quebec. The March 2025 Feasibility Study outlines a 25-year mine life producing approximately 106,000 tpa of graphite concentrate. 2. Phase 2 Bécancour Battery Material Plant: An advanced manufacturing facility in Bécancour, Quebec, designed to transform the concentrate from Matawinie into ~44,100 tpa of coated spherical purified graphite (CSPG), which is the active anode material used in lithium-ion batteries.

The company aims to be a key supplier for the North American battery supply chain, leveraging Quebec's green hydroelectricity.