Nouveau Monde Graphite (NMG) signed two separate binding offtake agreements to supply natural graphite anode active material (AAM) to General Motors (GM) and Panasonic Energy. 

NMG signed a multiyear agreement to supply 18ktpy of AAM to GM from its Phase-2 integrated production facility in Bécancour, Canada. This project is a fully integrated approach to supplying natural AAM to the North American battery supply chain and is gaining significant attention within the region. In addition to the commitment to purchase material, GM is also investing US$150M (subject to closing conditions) to support the ongoing development and construction of the project, which will be key in its advancement towards production. On the same day, NMG announced another binding offtake agreement to supply Panasonic Energy with 18ktpy of natural AAM over an undisclosed number of years. The agreement also includes a US$25M investment by Panasonic to support NMG’s Phase-2 project in Bécancour, with further intent to invest up to US$150M with additional co-investors. 

This news comes at a crucial time as NMG scales up its operations and North American projects increasingly want to source anode material domestically. GM, Panasonic and all involved parties will be looking to secure North American AAM as a means to satisfy the eligible material quota for tax credits laid out in the Inflation Reduction Act. Signing multiyear supply deals with the Canada-based producer would ensure that this portion of supply is eligible for years to come and is a move for reducing reliance on China, which currently dominates the global anode supply chain. Being a major component that makes up a substantial portion of lithium-ion battery mass, more investment is expected (and needed) within the North American graphite supply chain. 

Natural AAM is typically seen as a more ESG-compliant material when compared with synthetic AAM due to a lower carbon footprint of production, although production using renewable energy aims to reduce this delta.  NMG, GM and Panasonic will no doubt boast the naturally-derived material’s environmental credentials when it comes to producing electric vehicles for the energy transition. However, Panasonic also signed another binding offtake agreement earlier in February with Novonix, in which it will purchase >10kt of material from the synthetic AAM producer between 2025 and 2028. Novonix will be looking to supply this material from its facility in Chattanooga Tennessee, which is currently under construction and is targeting production later this year. Although the stipulated volumes are lower within this deal, it spells an interesting outlook for Panasonic as it looks to localise the supply chain for its North American operations. It doesn’t appear to be chemistry-specific when it comes to sourcing natural vs synthetic material, which is likely a result of both limited anode material availability within North America and an optimised approach to lithium-ion battery manufacture. Securing and diversifying supply will continue to be key for all the major downstream players of the lithium-ion battery supply chain within the region.