Nouveau Monde Graphite (NYSE: NMG) began construction on its Matawinie mine in Quebec, which is set to produce 106,000 metric tons of graphite annually and become the largest such mine in any G7 economy. The company's stock rose 2.7 percent on the news.
"This groundbreaking marks far more than the start of construction, it represents the culmination of years of dedication and perseverance," Eric Desaulniers, Founder and CEO of NMG, said in a statement.
The project's launch follows the closing of a roughly $310 million equity transaction with investors including Italian energy firm Eni, alongside $334 million in financing from Canadian state-owned lenders. The mine is expected to enter full commercial production by the end of 2028 after a 31-month construction phase.
The Matawinie mine is a strategic asset for Canada's bid to build a domestic electric-vehicle supply chain, with over 70 percent of its future output already committed through offtake agreements with partners like Panasonic Energy. NMG aims for a final investment decision in the second half of 2026 on a related battery material plant in Bécancour.
A Strategic Project with Government Backing
The groundbreaking ceremony was attended by Canadian Prime Minister Mark Carney, who highlighted the project as proof of his government's commitment to accelerating the development of nationally important resource projects. The federal government and the provincial government of Quebec are major shareholders, with stakes of about 19 percent and 18 percent, respectively.
"Carney's involvement made a difference in attracting foreign investors," said NMG CEO Eric Desaulniers, noting the government's help in securing financing and offtake agreements. In November, the Canadian government designated the Matawinie mine a project of national interest, which helped fast-track the approval process.
Securing the North American EV Supply Chain
The mine is poised to become a cornerstone of the North American battery material supply chain, which is currently reliant on foreign sources. Its expected annual output of 106,000 tonnes is eight times Canada's current total production.
The output is primarily targeted for the manufacturing of electric-vehicle batteries. In support of its vertically integrated model, NMG is also planning a battery material plant in Bécancour with a planned capacity of 13,000 tonnes per year, dedicated to fulfilling its offtake agreement with Panasonic Energy.
This article is for informational purposes only and does not constitute investment advice.