GM takes stake in anode material supplier

Detroit OEM GM has signed a deal with Canadian metals company Nouveau Monde Graphite (NMG) that will see the automaker source anode material from NMG in exchange for a $150mn equity stake in the Canadian firm.

NMG will provide 18,000t/yr of its anode material output to GM for six years.

"We welcome GM as a shareholder, invested in our robust North American commercial plan as well as our ESG commitments to responsible production and partnered development with First Nations and communities," says Arne Frandsen, chair of NMG.

GM will make an initial $25mn equity investment in NMG to support the advancement of NMG’s Matawinie mine and the Becancour battery material plant. The OEM will commit a further $125mn of equity when FIDs have been taken on the projects.

Graphite extracted from the Matawinie mine will be transported to the Becancour plant to be processed into active anode material, before being delivered to GM's battery cell plants.

"From our assembly plants and battery cell plants in the US, to our investments across the supply chain, we are developing a North American EV ecosystem aimed at benefiting consumers, expanding economic opportunity, and creating a competitive advantage for GM," says GM vice-president of global purchasing and supply chain Jeff Morrison.

NMG has announced a parallel deal which will see it provide 18,000t/yr of anode material to Japanese battery maker Panasonic Energy under a seven-year contract.

NMG has been seeking offtake agreements for the second phase of its Becancour plant since late 2023, after securing 77MW of electricity capacity from Quebec’s electricity supplier Hydro-Quebec to power the proposed plant.

With the two deals in place, NMG says it will now advance its plans to develop the plant.