Nouveau Monde Graphite Inc. Strengthens Market Position through Strategic Offtake Agreements and Government Support

Nouveau Monde Graphite Inc. (NMG) has announced the completion of a comprehensive off‑take and marketing agreement with Traxys, securing a 20,000‑ton‑per‑year supply of natural flake graphite concentrate for the North American and European refractory markets. The deal includes a firm take‑or‑pay commitment of 10,000 tpa, ensuring a stable revenue base as the company ramps up Phase‑2 production at its Matawinie mine in Quebec.

Key Deal Highlights

  • Volume Commitment – 20,000 tpa of graphite concentrate, with a guaranteed 10,000 tpa.
  • Market Focus – Exclusive access to a curated list of end‑users in the refractory sector, spanning both North America and Europe.
  • Production Timeline – Concentrate to be produced at the newly developed Phase‑2 facility, reinforcing NMG’s capacity expansion strategy.

The agreement aligns with NMG’s broader objective of positioning itself as a premier supplier for high‑purity graphite destined for electric‑vehicle batteries and other advanced energy technologies. By locking in a significant portion of its output, the company mitigates commodity‑price volatility and enhances its credit profile for future financing.

Complementary Off‑take Agreements

In parallel, NMG has finalized several other off‑take contracts that underscore robust support from both Canadian government agencies and private sector partners. The company’s latest partnership with Panasonic Energy signals a joint commitment to launch an initial production line of active anode material. This collaboration not only diversifies NMG’s customer base but also cements its role in the critical‑materials supply chain that underpins the global transition to low‑carbon technologies.

Government Endorsement and G‑7 Initiative

The Canadian government has reiterated its backing of NMG’s operations as part of a broader Group‑of‑Seven (G‑7) effort to fortify access to critical minerals. Alongside industry leaders such as Rio Tinto Group, NMG is set to receive preferential treatment and support under this initiative, which aims to secure strategic resources for member economies. This endorsement is expected to translate into streamlined permitting, enhanced infrastructure access, and potential financial incentives that could accelerate the company’s Phase‑2 rollout.

Market Dynamics and Forward Outlook

NMG’s share price, trading at CAD 3.98 as of 29 October 2025, sits well below its 52‑week low of CAD 1.70 but remains comfortably beneath the 52‑week high of CAD 7.96. The company’s price‑earnings ratio of –8.56 reflects its ongoing investment in development rather than immediate profitability—a common profile for a resource company in the ramp‑up stage. Market capitalization currently stands at approximately CAD 627 million.

With the new off‑take agreements in place, NMG is positioned to deliver consistent cash flows in the short term while expanding its Phase‑2 capacity. The alignment with government policy and strategic partners enhances the company’s competitive moat, positioning it favorably against global graphite producers. As electric‑vehicle adoption accelerates and battery chemistries demand higher‑purity graphite, NMG’s forward‑looking production strategy places it on a trajectory to become a key supplier in the critical‑materials ecosystem.

In summary, Nouveau Monde Graphite Inc. is advancing through a decisive phase of growth, underpinned by solid contractual commitments, government support, and alignment with global supply‑chain priorities. These developments signal a strengthening of NMG’s market presence and a clearer path to sustainable profitability.