NMG Is Gearing up for Its Phase 2 Commercial Operations in Bécancour – Innovative Workforce Training Program Established and Relationships Forged With Contractors and Suppliers
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Insights
The establishment of Nouveau Monde Graphite's Phase-2 Bécancour Battery Materials Plant represents a strategic expansion within the North American battery supply chain. The implications for the local economy are substantial, with the potential for job creation and increased industrial activity. The emphasis on training programs illustrates a proactive approach to overcoming the skilled labor shortage, a common challenge in the green technology sector. Moreover, the focus on environmental, social and governance (ESG) requirements aligns with the increasing investor demand for responsible corporate behavior, which could enhance the company's attractiveness to ESG-focused investors.
From a market perspective, the partnerships with major players such as General Motors and Panasonic signify strong demand for NMG's anode materials, which are critical for electric vehicle (EV) batteries. The projected output of 43,000 tonnes per annum of active anode material could position NMG as a significant supplier in the EV market, potentially impacting the supply chain dynamics and pricing for battery components. This could lead to increased investor interest in the company and the broader regional battery hub.
Financially, the progress toward the final investment decision (FID) signals a commitment to capital expenditure that is underpinned by strategic offtake agreements. Such agreements typically provide cash flow visibility and reduce the risk profile of the project, which may be reflected in the company's stock valuation. By securing these contracts prior to the FID, NMG demonstrates operational prudence and financial acumen, likely instilling confidence among shareholders and potential investors.
The impact on the stock market will largely depend on the project's execution and the company's ability to meet projected timelines and budgets. Delays or cost overruns could negatively affect the stock, while successful implementation may lead to positive revaluation. Investors will also monitor the efficiency of the procurement strategy and how it translates into cost savings and competitive advantage for NMG.
The focus on green technology and training for green tech jobs is indicative of a broader industry trend toward sustainable development. As governments and international bodies intensify efforts to combat climate change, companies like NMG that invest in green technologies are well-positioned to benefit from supportive policies and potential subsidies. NMG's commitment to ESG principles and its strategic location, offering access to clean hydroelectricity, could provide it with a competitive edge in an industry where carbon footprint is increasingly scrutinized.
Stakeholders, including local communities and environmental groups, will likely monitor the company's adherence to environmental regulations and its impact on the region's ecological balance. The company's ability to maintain high environmental standards could affect its social license to operate and, by extension, its long-term profitability and stock performance.
- Launch of a training program in green technology industrial processes in partnership with the region’s education and industrial partners to secure a local and qualified workforce
- Meetings held with over 300 regional companies in recent months to identify local capacity and plan the Company’s procurement strategy
- Progress in pre-construction, permit applications, and engineering for the final investment decision, supported by offtake and investment agreements with GM and Panasonic
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Implementation of NMG’s Phase-2 Bécancour Battery Materials Plant in the heart of the
Bécancour industrial park, where construction on the GM-Posco, Ford and Nemaska Lithium plants is underway
Panasonic Energy and NMG leaders celebrate the new chapter in their collaboration. (Photo: Business Wire)
Arne H Frandsen, NMG’s Chair of NMG, declared: “Beyond its industrial infrastructure and the synergy from the battery industry,
Training the local workforce
NMG is working closely with education and industrial partners in the region, to support the implementation of an innovative, customised training program to equip the local workforce with qualifications and training for green tech jobs, integral for both the development of NMG and the fast-faced establishment of a regional battery hub. The first cohort of the Attestation of Collegial Studies (“ACS”) program in green tech industrial processes began at the Cégep de Trois-Rivières at the end of January. The alternating work-study program is paid, and lasts 15 months. The program allows students to apply what they have learned at an actual plant, become accustomed to working in an industrial environment, and build relationships with their future colleagues. NMG is supporting five students within this first cohort who will work at its Phase-1 plants throughout their training period and who are on track to become permanent employees upon their graduation.
Kateri Champagne Jourdain, Minister of Employment and Minister Responsible for the Côte-Nord Region, commented: “The training offered by the Cégep de Trois-Rivières will certainly meet the needs of businesses. The Mauricie and Centre-du-
This mutually beneficial and collaborative approach to developing training services echoes the formula that NMG developed with stakeholders in
Connecting with local contractors and suppliers
NMG is taking advantage of the broad reach of the battery industry in the
Furthering its 2023 efforts to build relationships with the regional business community, NMG took part in the Rendez-vous économique held by the Ville de
Work is already well underway in the
Eric Desaulniers, Founder, President and CEO of NMG, said: “The priority for our Phase-2 execution plan is to responsibly develop our commercial facilities in partnership with the community. So many workers, contractors and suppliers have responded to our invitation to take part in this project that is shaping the future of the
Along with field-based activities to promote NMG’s training program and its procurement strategy, the Company’s project team is also working closely to advance the engineering, pre-construction, and permit applications for the FID. The Bécancour Battery Materials Plant is expected to supply the North American market with approximately 43,000 tonnes of active anode material per year. NMG’s 200,000-m² site in the heart of Québec’s battery industry will enjoy robust industrial infrastructure, access to clean and affordable hydroelectricity, a direct supply of chemicals, and a multimodal logistics base.
About Nouveau Monde Graphite
Nouveau Monde is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in
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Cautionary Note
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the start of commercial operation of the Bécancour Battery Material Plant, the planned construction of the Bécancour Battery Material Plant, a positive final investment decision and closing of project financing, receipt of any regulatory approvals and permits in respect of the initiatives described herein, the anticipated benefits of the initiatives described herein, the Company’s relationship with its stakeholders, including suppliers, contractors and employees, the realization of the condition precedents of the supply agreements and their entry into force, the intended supply of active anode material to GM and Panasonic Energy, expected volume of active anode material per year, the intended results of the initiatives described in this press release and those statements which are discussed under the “About Nouveau Monde” paragraph and elsewhere in the press release which essentially describe the Company’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of Canadian and
Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, those risks, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, the operating performance of the Company’s assets and businesses, competitive factors in the graphite mining and production industry, changes in laws and regulations affecting the Company’s businesses, including the changes in China’s policy regarding restrictions on Chinese graphite materials exportations, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, the impacts of the global COVID-19 pandemic and the governments’ responses thereto, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in NMG’s Annual Information Form dated March 23, 2023, including in the section thereof captioned “Risk Factors”, which is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
The market and industry data contained in this press release is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the Company believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data-gathering process and other limitations and uncertainties inherent in any survey. The Company has not independently verified any of the data from third-party sources referred to in this press release and accordingly, the accuracy and completeness of such data is not guaranteed.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further information regarding the Company is available in the SEDAR+ database (www.sedarplus.ca), and for
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226491128/en/
MEDIA
Julie Paquet
VP Communications and ESG Strategy
+1-450-757-8905, ext. 140
jpaquet@nmg.com
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905, ext. 993
mjasmin@nmg.com
Source: Nouveau Monde Graphite Inc.
FAQ
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