MONTRÉAL - Panasonic (OTC:PCRFY) Energy Co., Ltd., a subsidiary of Panasonic Holdings Corporation (TYO: 6752), has secured a seven-year offtake agreement to receive 18,000 tonnes per annum of active anode material from Nouveau Monde Graphite Inc. (NYSE: NMG, TSX.V: NOU). This agreement is part of Panasonic's strategy to strengthen the North American electric vehicle (EV) battery supply chain.
The offtake agreement is accompanied by an initial US$25 million equity investment in NMG to advance the Phase-2 operations of the Matawinie Mine and the Bécancour Battery Material Plant, aligning with Panasonic Energy's refined specifications. Panasonic also plans to contribute an additional US$150 million, alongside potential co-investors, contingent on a positive final investment decision for NMG's Phase-2 facilities.
This partnership aims to establish a local, carbon-neutral, and responsible source of natural graphite, in line with environmental, social, and governance (ESG) principles. The material supplied under this agreement will comply with the U.S. Inflation Reduction Act's requirements for EV subsidies.
NMG's Phase-1 active anode material has already been integrated into Panasonic Energy's battery prototype production line, demonstrating a low environmental footprint and ESG compliance. The company's active anode material production is set to become North America's largest fully integrated output, from ore to material, upon the commencement of Phase-2 production.
The agreement with Panasonic Energy, along with a parallel supply and investment agreement with General Motors Co. (NYSE: NYSE:GM), marks a significant milestone for NMG, potentially securing up to US$275 million in future funding from anchor customers, subject to certain conditions.
The transactions are intended to provide NMG with the financial and technical support needed to progress towards the final investment decision for its integrated Phase-2 operations. The equity investment and offtake agreement are subject to customary regulatory approvals and conditions.
NMG, focused on developing carbon-neutral battery anode material, is poised to supply high-performing, reliable materials to the EV and lithium-ion battery markets, aiming to contribute to the sustainable energy revolution.
The information for this article is based on a press release statement from Nouveau Monde Graphite Inc.
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