Nouveau Monde provides update on Phase 2 projects, market conditions

Nouveau Monde (NMG) reported continued progress in advancing its Phase-2 Matawinie Mine and Phase-2 Becancour Battery Material Plant toward reaching a final investment decision thanks to technical project development, active financing activities, and commercial engagement with customers. Current trade and geopolitical dynamics create a changing environment for NMG’s development, with both opportunities and challenges; hence, the company is exploring various financing and commercial scenarios to lessen risk exposure and facilitate its market entry. Since issuing the NI 43-101 updated technical feasibility study report for the Matawinie Mine and Becancour Battery Material Plant Integrated Graphite Projects, NMG has pursued the development of the Phase-2 Matawinie Mine in preparation for FID. Detailed engineering, negotiation of contracts with key suppliers, preparation of call for tenders for construction, value engineering, electrification planning, and schedule optimization are ongoing to advance the project. The company has also initiated work for key environmental infrastructure at the demonstration mining site in view of additional flake production at the Phase-1 Demonstration Plant. In parallel, NMG is actively focusing on advancing engineering of the Phase-2 Becancour Battery Material Plant to optimize processing technologies and refine environmental, operational, and financial parameters, in view of reaching FID. Engineering is being supported by specialized Asian firms with expertise in the graphite and anode material industry. Large-scale testing and sample production are being planned at partnering facilities to inform engineering and commercialization efforts. The company is working with its Anchor Customers and other potential tier-1 customers toward bankable offtake agreements paired with strategic investments to bring NMG’s Phase-2 Matawinie Mine and Phase-2 Becancour Battery Material Plant to FID, subject to their respective technical, commercial and financing parameters. The company is exploring various financing and commercial scenarios to lessen risk exposure in light of current geopolitical conditions, including the possibility of sequencing financing stages. Financing activities continue to progress via engagement with its customers, potential lenders, and targeted institutional equity investors with a view to advancing key requirements. To date, the company has received letters of interest toward the debt financing structure for over $1B toward the company’s Phase-2 Matawinie Mine and Becancour Battery Material Plant. Targeted capital providers include various governmental bodies, public institutions, and export credit agencies, namely Export Development Canada and Canada Infrastructure Bank. The financing structure at FID is set to also include an equity participation from key investors, including the Company’s Anchor Customers. The global EV momentum remains strong despite some policy headwinds in North America, according to the company. Over nine million EVs were sold worldwide in the first half of 2025, a 28% year-to-date increase that saw significant growth in China and Europe, while the North American EV market slowed to just 3% growth. According to the International Energy Agency, global EV sales are on track to exceed 20M in 2025.