Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesMiningNewsCanadian miner to start graphite project in challenge to Chinese dominanceThe plant is to be built in Becancour, Que., home to two EV battery-component plants under constructionAuthor of the article:Last updated 1 day ago You can save this article by registering for free here. Or sign-in if you have an account.Eric Desaulniers, president and chief executive officer of Nouveau Monde Graphite Inc., in front of graphite ore in storage at the company's facilities in Saint-Michel-des-Saints, Que. on Oct. 6, 2022. Photo by Christinne Muschi/BloombergNouveau Monde Graphite Inc. expects to formally green-light plans this week to build one of North America’s few graphite projects, as countries seek to weaken China’s dominance over the critical mineral.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorA previously announced financing package of about US$645 million in gross proceeds was backed by shareholders Wednesday. The money is to be used to develop a graphite mine in Saint-Michel-des-Saints, Quebec, about 100 miles north of Montreal, and to build a concentrator nearby.Graphite is a key material in lithium-ion batteries, prized for its conductivity. China is the world’s major supplier.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againA construction team is already on site and more than 50 per cent of the project’s capital expenses are secured through contracts, according to a company statement. Costs are estimated at about US$474 million, and commissioning is projected by the end of 2028.The company’s plans also include a refining facility for the production of 13,000 metric tonnes per year of active anode material, which accounts for about half of an electric vehicle battery. The plant is to be built in Becancour, Que., where General Motors Co. and Rio Tinto Group-backed Nemaska Lithium Inc. are already constructing EV battery-component plants.Nouveau Monde’s ambitions have been slowed down by automakers’ retreat on electric vehicles, with GM withdrawing from the project and Panasonic Holdings Corp. scaling back an offtake agreement. The expected full production at the Becancour facility has been lowered by 70 per cent and will entirely go to Panasonic.“I never thought the mining project wouldn’t get off the ground,” chief executive Eric Desaulniers said in an interview. “It is too solid and too far along — and too necessary, too.”The Canadian government stepped in last fall to provide investors with more certainty by ensuring the purchase of 30,000 metric tonnes of graphite concentrate per year, or slightly less than a third of the mine concentrator’s output, at a fixed price to support the venture. The government also selected Nouveau Monde as one of the major projects to prioritize.Export Development Canada and the Canada Infrastructure Bank committed US$335 million in debt. The Canada Growth Fund, the Quebec government and Italian energy firm Eni SpA will provide a private placement of US$213 million, which needed Nouveau Monde shareholders’ approval. A bought deal public offering will bring in US$96.5 million. Mitsui & Co. is among Nouveau Monde’s largest shareholders.Eni also signed a letter of intent for a potential offtake of graphite concentrate or active anode material from the Becancour plant.Desaulniers said the challenges tied to slower EV adoption have pushed his firm to diversify the potential customer base for graphite concentrate — including the energy storage and steelmaking industries.“We have a plan that’s much better in terms of diversification, so we’re not at the mercy of a single market that can sometimes change quickly,” he said.BloombergNEF foresees a technical deficit of graphite globally by 2032 as demand for lithium-ion batteries soars.“China is the world’s dominant graphite supplier, a position it maintains through 2050 in BNEF’s outlook despite other countries’ efforts to localize production,” it said in a report last month. “New players struggle to compete with China’s scale, especially given the high energy and chemical costs of spheroidization and graphitization.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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