Carney fast-tracks $1.5B Nouveau Monde Graphite mine — Canada’s answer to China’s 80% supply control

Canada’s Prime Minister Mark Carney announced on Tuesday that construction is starting on Nouveau Monde Graphite’s (TSX-V: NMG)(NYSE: NMG) Matawinie mine in Québec just six months after its referral to the Major Projects Office.

The company is now advancing Phase 2 of the development, which Carney said will become the largest graphite mine in the G7 and bolster Canada’s critical minerals supply chain. China is the world’s leading producer, accounting for nearly 80% of global supply.

Located about 120 km north of Montreal, Matawinie is expected to produce as much as 106,000 tonnes of graphite annually once completed. Ottawa said the mine will create more than 1,000 jobs and attract nearly C$2 billion ($1.5 billion) in investment as Canada pushes to expand domestic battery materials production amid rising geopolitical and trade tensions. 

The announcement NMG’s recent release of $96.5 million from escrow.

“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.”

Major milestone

NMG chief executive Eric Desaulniers said the groundbreaking marks a major milestone for the company’s integrated graphite strategy, which includes a planned battery materials plant in Bécancour, Que. He said the project reflects collaboration with governments, local communities and Indigenous partners while advancing Canada’s role in the critical minerals sector.

Federal ministers including Environment Minister Julie Aviva Dabrusin also praised the development, calling it an important step in supporting low-carbon manufacturing and resilient supply chains.

Ottawa has committed financing support through Export Development Canada, the Canada Infrastructure Bank and the Canada Growth Fund, alongside a seven-year offtake agreement for 30,000 tonnes annually of graphite concentrate.

Battery ambitions grow

According to Natural Resources Canada, Canada produced 12,000 tonnes of graphite in 2024, or 0.7% of global supply, ranking eighth worldwide. China dominated production with 79.4% of global output, while Madagascar ranked second at 5.6%, underscoring the concentration of supply the West is trying to diversify.

The project moves ahead as demand for battery-grade graphite accelerates alongside electric-vehicle growth and new US trade measures reshape global supply chains. 

Canada and its allies are increasingly seeking secure, lower-emission sources of critical minerals as they work to reduce reliance on Chinese supply. 

Matawinie is expected to anchor a broader North American graphite ecosystem tied to battery, defence and advanced manufacturing industries.