NMG and Panasonic Energy Strengthen Partnership to Launch Dedicated Production of Active Anode Material
Nouveau Monde Graphite Inc. (“NMG” or the “Company”) (NYSE: NMG, TSX: NOU) has announced a significant update to its commercial relationship with Panasonic Energy Co., Ltd. (“Panasonic Energy”), a wholly owned subsidiary of Panasonic Holdings Corporation (TYO: 6752). Through its wholly owned subsidiary NMG Bécancour Inc., NMG has successfully revised and strengthened its multiyear binding offtake agreement with Panasonic Energy — now titled the 2025 Panasonic Energy Binding Offtake Agreement — to advance the development and production of active anode material for lithium-ion batteries.
This updated agreement marks an important milestone for both companies as they move toward establishing a sustainable, reliable, and fully integrated North American battery materials supply chain. Panasonic Energy, already a key strategic shareholder and customer, has reaffirmed its support for NMG’s Phase-2 integrated “ore-to-battery-materials” value chain. The collaboration is expected to accelerate NMG’s transition from project development to full-scale production of battery-grade materials.
A Strengthened Partnership for a Sustainable Battery Supply Chain
Kazuo Tadanobu, President and CEO of Panasonic Energy, expressed his enthusiasm for the evolving partnership:
We’re pleased to see our partnership with NMG moving into the next phase. Built on mutual trust and shared goals, this collaboration is an important step toward establishing a more sustainable and reliable battery materials supply chain. Together, we’re combining our expertise and resources to strengthen supply stability, enhance innovation, and meet the growing needs of the industry. This partnership underscores our shared commitment to long-term growth, responsible progress, and building a foundation for future technologies.”
This statement underscores Panasonic Energy’s confidence in NMG’s ability to supply high-quality, sustainable graphite-based anode material that aligns with the company’s global electrification strategy. As one of the world’s leading battery manufacturers, Panasonic Energy has been at the forefront of powering electric vehicles (EVs) and energy storage systems. Its ongoing collaboration with NMG represents a strategic alignment aimed at localizing supply chains in North America while minimizing environmental impact.
Eric Desaulniers, Founder, President, and CEO of NMG, highlighted the importance of this renewed partnership:
Panasonic Energy has been a steady and invaluable partner in the technological development of our business strategy. With this revised offtake, we are setting the path for launching the initial capacity of the Phase-2 Bécancour Battery Material Plant, tailored to Panasonic Energy’s specifications and in tune with the North American gradual market growth. From electric vehicles to energy storage systems for renewable energies and data centers, Panasonic Energy’s commercial reach provides NMG with solid footings for our market entry.”
This updated agreement represents a critical step in NMG’s efforts to advance its vertically integrated operations — from graphite mining at its Matawinie site to anode material production at its Bécancour Battery Material Plant — reinforcing the company’s strategy to position itself as a key North American supplier of sustainable battery materials.
Details of the 2025 Panasonic Energy Binding Offtake Agreement
The updated 2025 Panasonic Energy Binding Offtake Agreement covers the supply of 13,000 tonnes per annum (tpa) of active anode material over an initial seven-year term, beginning upon the commencement of NMG’s Phase-2 commercial production. This output will be supplied from the company’s planned Bécancour facility, which is being designed to meet Panasonic Energy’s technical and quality specifications.
To support this supply commitment, approximately 25,000 tpa of graphite concentrate will be reserved from NMG’s future Phase-2 Matawinie Mine production. This allocation ensures a consistent and dedicated feedstock for producing active anode material, aligning with Panasonic Energy’s long-term sourcing strategy.
NMG’s active anode material continues to advance through Panasonic Energy’s qualification process, which involves extensive testing and validation to confirm product quality, consistency, and electrochemical performance. Once qualified, this material will feed directly into Panasonic Energy’s battery manufacturing operations, serving applications across electric mobility, energy storage, and data center infrastructure.
Pricing and Commercial Framework
The updated agreement establishes a flexible pricing formula that is tied to prevailing market prices for graphite-based anode materials. This mechanism also incorporates provisions designed to maintain favorable project financing ratios for NMG and ensure stable procurement costs for Panasonic Energy.
By linking pricing to transparent market indicators while maintaining financial sustainability, both companies are ensuring that the agreement remains balanced and adaptable to changing global market conditions. This commercial structure supports NMG’s financing efforts for its Phase-2 development, while providing Panasonic Energy with supply assurance and predictable cost parameters.
The agreement also includes standard conditions precedent, such as the successful start of commercial operations and final product qualification, which are typical for projects of this scale and nature. Additionally, both parties have incorporated standard termination rights to ensure contractual flexibility under defined circumstances.
Panasonic Energy’s Continued Support and Potential Equity Investment
Panasonic Energy has reiterated its intention to support the development of NMG’s Phase-2 facilities, potentially through an additional equity investment in NMG’s Phase-2 Bécancour Battery Material Plant. This investment would occur at the time of the project’s Final Investment Decision (FID) and would be in line with Panasonic’s initial investment made in 2024.
Such continued financial and strategic support further strengthens the partnership and demonstrates Panasonic Energy’s confidence in NMG’s project execution, technological expertise, and commitment to sustainability. This collaboration is also aligned with North America’s broader goal of developing a localized, decarbonized battery supply chain to reduce reliance on imported materials.
Sustainability and ESG Leadership
Through this renewed agreement, Panasonic Energy will leverage NMG’s fully integrated North American production ecosystem, which emphasizes carbon neutrality, responsible sourcing, and environmental, social, and governance (ESG) leadership. NMG’s production process — from mining to material refinement — is being designed to achieve minimal environmental impact while ensuring transparency and traceability throughout the supply chain.
The company’s commitment to sustainability includes electrified mining operations, green energy usage, and rigorous community engagement. Together, these efforts contribute to the establishment of a reliable, local, and sustainable battery manufacturing value chain, which is increasingly critical in the global transition to clean energy technologies.
Next Steps: Advancing Toward Phase-2 Development and Market Entry
With nearly 100% of its future Phase-2 Matawinie Mine graphite concentrate production now allocated among several long-term customers across diverse applications, NMG is focused on bringing its mining project to a Final Investment Decision (FID). This milestone is expected to occur concurrently with or ahead of the FID for the Phase-2 Bécancour Battery Material Plant.
NMG is also evaluating the potential adjustment of plant capacity to align with the cumulative demand secured through multi-year offtake agreements, ensuring that production volumes remain optimized to serve its customers effectively. These steps collectively position the company for a robust market entry supported by firm commitments from major industry players like Panasonic Energy.
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