Nouveau Monde Graphite (NMG) Note from Eric D. - Jan 26

[dan_s]

“At some point, we will start to run out of graphite, like we did with lithium, and then the spot price will go ballistic. Prices need to go up if we are to build capacity.” - Eric Desaulniers - Founder, President & Chief Executive Officer
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Could 2023 be the natural graphite year? It bodes well.
Source: Benchmark Mineral Intelligence

With consumer waiting lists continuing to lengthen for new EVs, there is palpable evidence that the battery market is entering a steep growth era.

Indeed, 2022 saw a record level of battery manufacturing announcements – now exceeding 8 TWh by 2031 – in conditions where the supply of natural flake graphite was struggling to keep pace.

This supply-demand imbalance led to pricing increases, up to 25% for -100 mesh flake graphite, a trend that Benchmark Mineral Intelligence expects to continue this year.

Anode demand grew 46% in 2022.

Surpassing traditional segments, the lithium-ion battery anode sector has become the largest end market for natural flake graphite, leading market fundamentals and prices to become increasingly driven by the battery market.

Responsible mining and manufacturing are set to influence the industry dynamics as stricter ESG standards and greater scrutiny gain traction and visibility.
What to keep in mind:
> Natural flake graphite prices rose up to 25% in 2022 and are expected to rise even more in the years to come
> The supply-demand imbalance for graphite directly impacts prices
> The battery sector has become the largest end market for flake graphite
> ESG is becoming more and more important in both the industry and supply chain
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NMG's Uatnan Mining Project: One of the World’s Largest Graphite Projects in Development

The preliminary economic assessment for the Uatnan Mining Project demonstrates attractive economics for a projected production of about 500,000 tonnes per year of graphite concentrate over a 24-year life of mine, allowing us to better supply the battery and EV market.

We have extended our ESG vision to the Uatnan Mining Project, including transition plans for all-electric operations, advanced environmental management and proactive First Nation and community engagement, to provide battery and EV manufacturers with responsibly extracted, environmentally transformed, and locally sourced graphite-based solutions.

Video Update from Eric: https://www.youtube.com/watch?v=lzbxP7NZPP8