MONTRÉAL – Might 13, 2022 (Investorideas.com Newswire) Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Firm”) (NYSE: NMG) ( TSXV: NOU) accomplished one other quarter of diligent progress in the direction of the institution of what’s projected to be North America’s largest and first absolutely built-in ore-to-battery-material pure graphite manufacturing in a context of accelerated development within the battery house and sustained stress on provide chains. NMG maintained its concentrate on the completion of its Part-1 manufacturing line with the development of its coating unit and the development of its Part-2 operations by course of optimization, engineering, procurement planning, preparatory work and up to date economics modelling.
The market is shifting on a structural stage. At this fee, we predict it’s neither the customers nor the regulators who will probably be driving the power transition however miners and recyclers. We’re positioning NMG on this new market as a turnkey supplier.
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New variants of COVID-19 forcing lockdowns in China, the Russia-Ukraine struggle in addition to continued client enthusiasm for cleantech are creating important stress on uncooked supplies sourcing for battery and electrical automobile (“EV”) producers. As provides tighten, demand continues to extend, with now greater than 6,200 GWh of world lithium-ion battery manufacturing capability anticipated by 2031 (Benchmark Mineral Intelligence, April 2022). Correspondingly, projections forecast a flake graphite deficit of almost 2 million tonnes each year (“tpa”) by the top of the last decade.
Arne H Frandsen, Chair of NMG, commented: “These dynamics reveal the urgency to spend money on superior supplies manufacturing to serve tomorrow’s economic system. Producers and governments at the moment are greedy the significance of vital minerals, native manufacturing, speedy commercialization and ESG-minded companies. This represents a springboard for NMG’s improvement because the Firm prepares for the deployment of its massive Part-2 built-in operations. NMG is ideally positioned on this context to offer a carbon-neutral, dependable and sizeable different to Chinese language provides.”
Merchandise Improvement and Market
Present market situations mixed with engagement reaping from NMG’s advertising and marketing program have led to enhanced actions with potential tier-1 prospects in 2022 with a view to securing a long-term cornerstone offtake settlement for its anode materials. Manufacturing at Part-1 services and testing at NMG’s new laboratory allow the availability of graphite merchandise in quite a lot of specs to satisfy the person necessities of every producer. NMG has superior into the qualification course of with a number of battery producers, now offering A & B samples. Sustained curiosity from potential top-tier prospects is supported by high quality checks, web site visits to the Firm’s Part-1 operations and requests for data.
Curiosity in NMG’s high-purity superior supplies stems from business leaders as North American manufacturing enters a development section and uncooked supplies provides turn into constrained. Certainly, rising anode demand, interrupted graphite manufacturing in China attributable to COVID-19, and international logistics disruptions have pushed year-over-year flake graphite costs up 34.6% (Benchmark, Might 2022). Authentic Tools Producers (“OEMs”) are turning their consideration upstream to safe sourcing and cut back their dangers. By means of direct improvement, joint ventures or strategic alliances, processing and mining at the moment are gaining producers’ consideration.
Eric Desaulniers, Founder, President, and CEO of NMG, added: “The market is shifting on a structural stage. At this fee, we predict it’s neither the customers nor the regulators who will probably be driving the power transition however miners and recyclers. We’re positioning NMG on this new market as a turnkey supplier of high-performing graphite supplies able to scale up manufacturing in an moral, environmentally-responsible and economical means.”
NMG is about to affix {the marketplace} at Europe’s Battery Present on June 28-30, 2022. The commerce present is devoted to superior battery know-how for electrical and hybrid autos, utility and renewable power help, moveable electronics, medical know-how, army, in addition to telecommunications. The Firm’s Gross sales and Expertise workforce will probably be onsite, sales space 8B34, to satisfy key business gamers and study among the newest applied sciences that would complement NMG’s operations.
Battery Materials Plant
NMG’s proprietary coating course of is taking form on the Firm’s Part-1 demonstration plant. With key deliveries having all been obtained, building is advancing safely, effectively and on finances for focused commissioning by the top of H1-2022. This unit is about to finish NMG’s manufacturing line, from ore to anode materials, for a 2,000 tpa nameplate capability.
Manufacturing of spherical purified graphite continues through NMG’s shaping and purification modules. Web site preparation is now accomplished on the Firm’s facility forward of the supply and set up of the brand new state-of-the-art shaping unit anticipated to be delivered in the direction of the top of Q2-2022.
In parallel, the Entrance-Finish Loading feasibility engineering evaluation (“FEL-3”) for the Firm’s Part-2 operations is progressing and on finances, with a 75% completion fee and a scheduled completion by the top of Q2-2022. NMG’s built-in enterprise mannequin will probably be mirrored on this Nationwide Instrument 43-101 Requirements of Disclosure for Mineral Initiatives (“NI 43-101”)-compliant feasibility examine for the Part-2 Bécancour Battery Materials Plant to replace planning, price projection, and improvement framework in a unified construction with the Matawinie Mine. In complement to the engineering efforts, the Firm has initiated the allowing planning course of and group outreach for the Bécancour Battery Supplies Plant.
Matawinie Mine
Continued progress of detailed engineering and optimization for the development of the Part-2 Matawinie Mine, notably on general web site structure, concrete tons, metal and structure drawings, help buildings, compressed air and mechanical parts, are progressing, supported by the finalization of course of design parameters, civil infrastructure plans and specs emissions for building and tools choice.
In preparation of the mining infrastructure, tree clearing actions and implementation of environmental safety infrastructure resumed in Q1-2022 to arrange the positioning for the following section of civil works.
As a part of its electrification technique, the Firm is working with Caterpillar Inc. (“Caterpillar”) in the direction of the event, testing and manufacturing of Cat® “zero-emission machines” for the Matawinie Mine. Caterpillar’s and NMG’s technical groups are actively engaged in assessing know-how alternatives and planning the all-electric fleet for the Part 2 Matawinie Mine.
Company and ESG
NMG conducts its operations guided by its Zero-Hurt Philosophy. The Firm stories a period-end Occupational Security and Well being Administration (“OSHA”) Recordable Incident Fee of 0 for its services and 0 for its contractors. NMG had no main environmental incidents as outlined by the World Reporting Initiative.
The Firm has commenced strengthening its high quality assurance and high quality management with the event of an ISO 9001-compliant administration system to help NMG’s certification aims, the groundwork for which has commenced in Q1-2022.
Within the remaining phases of preparation, NMG expects the life cycle evaluation for its portfolio of inexperienced graphite-based supplies to be accomplished by the top of Q2-2022 by its retained lifecycle knowledgeable and the unbiased advisor mandated for the exterior evaluate as per ISO 14040 and ISO 14044 necessities. Outcomes will help the Firm’s business discussions as {the marketplace} is more and more in search of visibility on its provide chain and higher sustainability efficiency.
The Firm can be advancing with the structuring and securing of venture financing for the development and improvement of the Part-2 Bécancour Battery Materials Plant and the Matawinie Mine. On this regard, the Firm has been in discussions with a lot of Export Credit score Businesses (“ECA”) to offer credit score help for a good portion of the venture financing. It has obtained non-binding letters of curiosity from two ECA, evidencing a transparent expression of the potential help which the ECA might provide.
As minerals demand projections proceed to rise, Western governments are deploying applications, insurance policies and enterprise incentives to help the event of native capability and cut back overreliance on Chinese language provide. In Q1-2022, each the U.S. and Canadian governments have introduced investments within the improvement of North American vital minerals manufacturing to make sure the home provide required to construct a neighborhood battery economic system.
The U.S. Authorities has additionally positioned its capability to fund vital mineral companies by adopting the Protection Manufacturing Act Title III Presidential Dedication for Important Supplies in Giant-Capability Batteries. This willpower authorizes the Division of Protection to create, preserve, defend, develop, or restore home industrial base capabilities important for the nationwide protection, with a concentrate on firms “that carry out in america or Canada considerably the entire analysis and improvement, engineering, manufacturing, and manufacturing actions required of such enterprise concern below a contract with america referring to a vital element or a vital know-how merchandise.”
As at March 31, 2022, the Firm had $43.5M in money. As at March 31, 2022, the Firm issued 19,901 widespread shares by its “at-the-market” fairness providing at a mean worth of CAD$9.62 (starting from CAD$9.50 to CAD$9.77).
About Nouveau Monde Graphite
NMG is striving to turn into a key contributor to the sustainable power revolution. The Firm is working in the direction of growing a completely built-in supply of carbon-neutral battery anode materials in Québec, Canada for the rising lithium-ion and gasoline cell markets. With low-cost operations and enviable ESG requirements, NMG aspires to turn into a strategic provider to the world’s main battery and vehicle producers, offering high-performing and dependable superior supplies whereas selling sustainability and provide chain traceability. www.NMG.com
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Cautionary Observe Relating to Ahead-Trying Data
All statements, apart from statements of historic reality, contained on this press launch together with, however not restricted to these describing the meant outcomes of the Firm’s improvement plans, the timeline and progress of the initiatives described on this press launch, forecasts of future graphite demand and provide, the advantages of the Firm’s de-risking technique, the affect of the foregoing on the venture economics, the Firm’s meant manufacturing capability of carbon-neutral anode materials, the expansion of the lithium-ion battery and EV markets, the Firm’s commitments and efficiency with respect to its ESG initiatives, together with the meant electrification of the Matawinie Mine, the curiosity of potential prospects, the Firm’s presence on the Europe’s Battery Present, the power to construction and acquire enough venture financing for the development and improvement of the Bécancour Battery Materials Plant and the Matawinie Mine, potential credit score help from ECA, the meant outcomes of the initiatives described on this press launch, and people statements that are mentioned below the “About Nouveau Monde Graphite” paragraph and elsewhere within the press launch which primarily describe the Firm’s outlook and aims, represent “forward-looking data” or “forward-looking statements” inside the that means of Canadian and United States securities legal guidelines, and are primarily based on expectations, estimates and projections as of the time of this press launch. Ahead-looking statements are essentially primarily based upon a lot of estimates and assumptions that, whereas thought of affordable by the Firm as of the time of such statements, are inherently topic to important enterprise, financial and aggressive uncertainties and contingencies. These estimates and assumptions might show to be incorrect. Furthermore, these forward-looking statements have been primarily based upon numerous underlying components and assumptions, together with the present technological traits, the enterprise relationship between the Firm and its stakeholders, the power to function in a secure and efficient method, the well timed supply and set up of the tools supporting the manufacturing, the Firm’s enterprise prospects and alternatives and estimates of the operational efficiency of the tools, and aren’t ensures of future efficiency.
Ahead-looking data and statements are topic to recognized or unknown dangers and uncertainties that will trigger precise outcomes to vary materially from these anticipated or implied within the forward-looking data and statements. Threat components that would trigger precise outcomes or occasions to vary materially from present expectations embody, amongst others, delays within the scheduled supply instances of the tools, the power of the Firm to efficiently implement its strategic initiatives and whether or not such strategic initiatives will yield the anticipated advantages, the provision of financing or financing on favorable phrases for the Firm, the dependence on commodity costs, the affect of inflation on prices, the dangers of acquiring the required permits, the working efficiency of the Firm’s property and companies, aggressive components within the graphite mining and manufacturing business, adjustments in legal guidelines and rules affecting the Firm’s companies, political and social acceptability threat, environmental regulation threat, forex and trade fee threat, technological developments, the impacts of the worldwide COVID-19 pandemic and the governments’ responses thereto, and basic financial situations, in addition to earnings, capital expenditure, money circulation and capital construction dangers and basic enterprise dangers. Unpredictable or unknown components not mentioned on this Cautionary Observe might even have materials hostile results on forward-looking statements.
Many of those uncertainties and contingencies can instantly or not directly have an effect on, and will trigger, precise outcomes to vary materially from these expressed or implied in any forward-looking statements. There could be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Ahead-looking statements are offered for the aim of offering details about administration’s expectations and plans referring to the long run. The Firm disclaims any intention or obligation to replace or revise any forward-looking statements or to clarify any materials distinction between subsequent precise occasions and such forward-looking statements, besides to the extent required by relevant regulation.
The market and business information contained on this press launch is predicated upon data from unbiased business publications, market analysis, analyst stories and surveys and different publicly obtainable sources. Though the Company believes these sources to be typically dependable, market and business information is topic to interpretation and can’t be verified with full certainty attributable to limits on the provision and reliability of uncooked information, the voluntary nature of the data-gathering course of and different limitations and uncertainties inherent in any survey. The Company has not independently verified any of the information from third-party sources referred to on this press launch and accordingly, the accuracy and completeness of such information will not be assured.
Neither the TSX Enterprise Change nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts accountability for the adequacy or accuracy of this launch.
Additional data relating to the Firm is out there within the SEDAR database (www.sedar.com), and for United States readers on EDGAR (www.sec.gov), and on the Firm’s web site at: www.NMG.com
Contacts
MEDIA
Julie Paquet
VP Communications & ESG Technique
+1-450-757-8905 #140
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993
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