Thursday, April 25, 2024
NewsGeneral Motors Will Invest US $150 Million into NMG for a Supply...

General Motors Will Invest US $150 Million into NMG for a Supply of Canadian Graphite

General Motors will receive graphite anode materials from NMG at its future factory in Bécancour.

  • NMG will supply the automaker with 18,000 tonnes of graphite annually for at least six years.

  • NMG will process the carbon-neutral graphite into anodes, which GM will assemble into batteries.

  • Both companies plan to open their own factory next to each other in Bécancour.

General Motors and Canadian graphite supplier Nouveau Monde Graphite (NMG) have entered an agreement that will see the latter supply GM with 18,000 tonnes of graphite annually for a period of six years.

As a result of the Inflation Reduction Act which specifies that battery materials must be sourced in North America for EVs to receive federal tax credits in the United States, many manufacturers are now working on developing a local supply chain.

General Motors is one of these automakers, and it believes the solution lies in its new partnerships with NMG and Posco Future.

Indeed, while GM and Posco Future had already announced plans to build a new battery factory in Bécancour, Québec, they hadn’t announced where they would source the required materials.

This has cleared up now that NMG has entered the picture, since the company strives to become the leading producer of carbon-neutral graphite in North America.

The site of the future plant Ultium CAM. Photo : GM

Since 95% of anode materials in lithium-ion batteries is graphite, this supply deal would account for a large chunk of what GM needs to build batteries in Québec.

According to the agreement, the automaker will invest US $150 million in NMG in exchange for 12,500,000 common shares and 12,500,000 common share purchase warrants in the company.

With this investment, NMG will build its own factory in Bécancour, a stone’s throw away from the upcoming GM/Posco facility, where it will process raw graphite extracted from its Matawinie mine into active anode materials, which will then be shipped the short distance to GM, who will assemble these materials into Ultium batteries ready to be installed in electric vehicles manufactured in Ontario and the United States.

With this partnership, General Motors will be able to rely on a stable supply chain while Nouveau Monde Graphite will benefit from this large investment to further its position on the graphite market.

Decarbonisation efforts will also help lower both NMG and GM’s carbon footprints.

Advertisement

Trending Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.