GM has signed an agreement with battery materials producer NMG for the supply of graphite active anode material used to make batteries for its electric vehicles (EVs). The agreement, which begins on an initial six-year term, will see NMG supply 18 tonnes of the material per year when production is fully ramped up.
As part of the agreement, GM will invest $150m in NMG in two phases to develop what is projected to be the first fully integrated anode material project in North America. The first $25m in equity investment will support the advance of NMG’s operations at Matawinie mine, located 120 km north of Montréal. It will also support phase two of production at the Bécancour battery production plant, located between Montréal and Quebec City.
Natural graphite extracted at NMG’s Matawinie Mine will be transported to the Bécancour plant to be processed into active anode material before being delivered to battery cell plants for the batteries in GM’s EVs. Phase two of the expansion of NMG’s production facilities in Bécancour will be located in the same industrial park as the $445m Ultium cathode active material processing facility GM is building with Posco Future M, the South Korean battery materials supplier.
Citing Benchmark Mineral Intelligence, NMG said more than 95% of EV battery anode is made from graphite, making it the battery metal most in demand.
GM has also committed to invest $125m of equity upon the successful completion of the initial projects.
“Our collaboration with NMG is a milestone for the industry, and in our ongoing development of a more sustainable and resilient battery supply chain,” said Jeff Morrison, vice-president of global purchasing and supply chain at GM. “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.
According to NMG the anode material produced in its existing production plant have been supplied to and tested for quality and specification by GM’s battery maker. The production of the material from ore to active anode material gives GM “a local, traceable and reliable source for GM’s supply chain”.
NMG said the agreement with GM aligns with sourcing requirements under the Inflation Reduction Act and its consumer EV tax credit provisions.
NMG has also recently signed a seven-year agreement with Panasonic Energy for the supply of natural graphite material. Panasonic Energy also plans to invest in NMG, with an initial payment of $25
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