Nouveau Monde Graphite Inc. has secured over US$1 billion in non-binding letters of interest toward the debt financing of its Phase 2 Matawinie Mine and Bécancour Battery Material Plant projects. The company is engaging a syndicate of institutional funds, export credit agencies and public institutions, and continues to solicit further commitments.
Earlier this year, NMG released an Updated Feasibility Study under NI 43-101 standards, confirming integrated production of natural graphite and active anode material within a 150 km radius of Montréal. The study indicates an after-tax internal rate of return of 17.5 percent and a net present value of US$1,053 million. This technical and economic validation has enabled the company to advance toward a final investment decision (FID).
Letters of interest include US$430 million from Export Development Canada (EDC), which supports Canadian exporters in global markets and contributed over US$7.6 billion to mining and metals activities in 2024. The Export–Import Bank of the United States (EXIM) has signaled US$172 million under its Supply Chain Resiliency Initiative, aimed at diversifying critical-minerals supply chains and enhancing U.S. economic security. The remaining US$481 million arises from confidential commitments by other governmental bodies and public institutions.
Debt providers are evaluating long-term financing structures with maturities beyond ten years and no principal repayments during the construction phase. NMG’s senior debt target aligns with its projected debt-to-equity ratio. These expressions of interest, while non-binding, form the basis for preparing final term sheets. Completion of the debt package will depend on parallel equity financing, fulfillment of conditions precedent, and execution of offtake purchase obligations.
Due diligence is well advanced, with advisory firms assessing corporate, technical, market and ESG components. Concurrently, NMG is finalizing engineering plans, supplier contracts and construction tenders to ensure timely execution upon financing close. These activities support the company’s goal of supplying carbon-neutral active anode material for electric vehicles and energy-storage systems from a fully integrated ore-to-battery-material source in Québec.
Source: Business Wire
