Canada fast-tracks Nouveau Monde Graphite’s mine 

Nouveau Monde Graphite (TSXV, NYSE: NMG) has started building its Matawinie mine in Quebec, a project Ottawa says will become the largest graphite mine in the G7 and a key link in Canada’s battery materials supply chain.

Prime Minister Mark Carney marked the start of construction Tuesday, six months after the project went to the Major Projects Office. About 120 km north of Montreal, Matawinie is to produce up to 106,000 tonnes of graphite a year, create more than 1,000 jobs and draw nearly $2 billion in investment, Ottawa said.

“Canada has what the world wants – and we’re moving at speed to get it to market,” Carney said in a statement. “It will create more than a thousand good career opportunities, strengthen our supply chains and build a stronger, more competitive, more independent Canadian economy for all.”

The mine moves ahead as Canada and its allies seek secure battery mineral supplies and try to cut reliance on China, which produced 79.4% of the world’s graphite last year. Canada ranked eighth at 12,000 tonnes, or 0.7% of global supply, according to Natural Resources Canada.

Battery minerals

Nouveau Monde is advancing the second stage of development after recently releasing $96.5 million from escrow. CEO Eric Desaulniers called the groundbreaking a key step in the company’s plan to link Matawinie with a planned battery materials plant in Bécancour, Que.

Federal agencies, including Export Development Canada, the Canada Infrastructure Bank and the Canada Growth Fund, have backed the mine. Ottawa said the support includes a seven-year offtake agreement for 30,000 tonnes a year of graphite concentrate.

Matawinie could help anchor a broader North American graphite network serving battery, defence and advanced manufacturing markets as electric-vehicle demand grows and new U.S. trade measures reshape supply chains.