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NMG confirms hydropower supply for mine and battery material plant

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NMG confirms hydropower supply for mine and battery material plant
(Chelsea Generating Station. Credit: Hydro-Quebec)

Nouveau Monde Graphite Inc. (NMG) has obtained confirmation from Hydro-Québec for 77 MW of hydropower for its Phase-2 Matawinie Mine and Bécancour Battery Material Plant.

NMG said it is “leveraging Québec’s power grid, one of the greenest in the world, as the bedrock of its electrification strategy.” NMG has an objective of reaching Net Zero by 2030. The company said maintaining a carbon-neutral footprint and bringing to market Net Zero products provide a competitive advantage in the battery and electric vehicle sector as manufacturers seek to reduce their Scope 3 emissions, comply with regulatory requirements, and respond to consumer demands for sustainable, responsible production.

NMG confirmed electrical capacity and competitive rates and defined zero-exhaust emission equipment deployment with Caterpillar Inc. Through agreements signed earlier this year, Caterpillar is set to be NMG’s supplier of heavy mining equipment, supporting the transition from traditional models to Cat® zero-exhaust emission machines as they become available. NMG and Caterpillar also signed a non-binding memorandum of understanding to advance commercial discussions targeting NMG’s active anode material. Hence, a full circular value chain could be established whereas NMG would supply carbon-neutral graphite materials to Caterpillar for development of its secure, resilient and sustainable battery supply chain that would serve to electrify heavy vehicles, including NMG’s Matawinie fleet.

“Clean energy is central to our operational, commercial, and ESG strategy. I am extremely pleased to see the progress made by our team and in collaboration with partners to translate our objectives into plans, technological design, and schedules,” said Arne H. Frandsen, chair of NMG. “Québec is becoming North America’s green battery thanks to its vast hydropower network, and we, in turn, are leveraging this renewable energy and its multiple jurisdictional advantages to establish a new operational model, from ore to battery materials, fully electrified, fully integrated, fully traceable.”

Complementary to agreements in place for the Phase-2 Matawinie Mine, NMG obtained confirmation from Hydro-Québec of a 77 MW electricity block for the Phase-2 Bécancour Battery Material Plant. Hydro-Québec generates over 99% of its electricity from renewable energy sources, mainly through hydroelectric generating stations, for an emission factor of 0.6 kg CO2 eq/MWh.

Electricity allocations are assessed on the basis of technical connection capacities, economic and regional development benefits, environmental and social impact, and alignment with governmental orientations, NMG said. The allocated electricity block will enable the establishment of a fully integrated advanced manufacturing platform in Bécancour for refining graphite into active anode material.

NMG received confirmation of its discounted industrial rate for hydroelectricity at both Phase-2 Matawinie Mine and Bécancour Battery Material Plant. Such a favorable commercial electricity rate provides a cost-competitive environment for energy-intensive sectors such as mining and advanced manufacturing, an incentive for investment and continued upgrading of facilities, and operational visibility for the company, according to a release.

These developments also support planning for the site’s charging infrastructure. Modeling and simulating the location of charging stations, equipment operations on site, as well as charging cycles in relation to operational schedules and the mining plan, help optimize site design and technology choices.

NMG is working toward developing a fully integrated source of carbon-neutral battery anode material in Québec, Canada, for the lithium-ion and fuel cell markets.