Nouveau Monde Graphite secures $335M project debt financing

Nouveau Monde Graphite (NYSE: NMG, TSX: NOU) has secured C$459 million ($335 million) in senior debt financing from leading Canadian public finance institutions to fund the next phase of its Matawinie project in Quebec.

On Tuesday, Export Development Canada (EDC) and the Canada Infrastructure Bank (CIB) jointly committed to providing the funding to support the project through its construction, development and commissioning.

Eric Desaulniers, NMG founder and CEO, calls the financing “a defining milestone” for the Matawinie mine. “This commitment from EDC and CIB reflects the depth of Canadian public-finance expertise behind large, strategic infrastructure and critical minerals developments — and it validates the bankability of our project,” he said in a press release.

Shares of Nouveau Monde Graphite shot up 5% on the news, sending its market capitalization back above C$480 million ($350 million). For the year, the stock remains down 11%.

‘Largest graphite mine’ of G7

Located in Saint-Michel-des-Saints, 150 km north of Montreal, the Matawinie project comprises a large open-pit mine and a concentrator that could produce up to 106,000 tonnes of natural graphite concentrate annually over 25 years.

The project is currently in its first phase, focused on establishing the mine’s initial infrastructure and producing graphite on a pilot scale for customer qualification. For Phase 2, Nouveau Monde is aiming to launch commercial operations, backed by commercial agreements with the Canadian government, Panasonic and Traxys for three-quarters of its future production.

According to Nouveau Monde, the Phase 2 Matawinie mine is expected to be the largest graphite mine in all of the G7 nations, serving a key role in the energy, advanced technology and manufacturing sectors of the future.

In November 2025, Matawinie was recognized as a “Major Project of National Interest” by the Canadian government for its strategic importance to Western supply chains. The project is currently shovel-ready and has passed all development milestones.

In addition to the mine, NMG is also developing a graphite-processing plant in Bécancour to produce active anode materials used in electric vehicle batteries. Initially, the plant would have an annual capacity of 13,000 tonnes.

“Graphite underpins battery supply chains, advanced manufacturing, and the technologies that shape the modern economy,” Tim Hodgson, Minister of Energy and Natural Resources said, adding that Canada is currently the only G7 country producing the mineral.

Investment decision

In Tuesday’s release, Hodgson also noted the government of Canada’s support in driving the Matawinie project toward final investment decision and construction.

The debt facilities, Nouveau Monde said, provide the company with a “clear path” to a final investment decision. Upon completing certain conditions, it expects to proceed to financial close and begin drawdowns under the term loan facility in accordance with the project schedule.

According to NMG, the facilities would account for a majority of the project’s capital cost, estimated at roughly $421 million as outlined in a feasibility study last year. The same report gave the project an after-tax net present value of $238 million (at 8% discount) and an internal rate of return of 15.8%.

In the meantime, the company remains in talks with investors for the equity component of the project financing.