Nouveau Monde Graphite (NMG) has unveiled the results of its feasibility study for its Phase-2 Matawinie mine and Bécancour battery material plant projects in Canada.

The feasibility study, conducted by engineering firm BBA, showed strong economic advantages for the company’s integrated ore-to anode-material model and operations.

The company’s Phase-2 Matawinie mine and Bécancour battery material plant are located 150km northeast of Montréal, Québec, Canada.

According to the study results, the Matawinie mine is expected to produce 103,328t/y of graphite concentrate.

The Becancour battery material plant is anticipated to produce 42,616t/y of anode material, 3,007t/y of purified jumbo flakes and 18,384t/y of by-product fines.

The study indicates a 21% after-tax internal rate of return, and a net present value of C$1.58bn ($1.22bn) for high-purity flakes and advanced graphite materials, based on projections of current pricing.

In addition, it estimates the capital expenditure for the integrated project to be at C$1.4bn, which includes C$481m for the mine and C$923m for the battery materials plant.

NMG chair Arne Frandsen said: “Market trends have accelerated in past months and while inflation and logistics turbulences present a more challenging environment, we have demonstrated our graphite expertise, advanced manufacturing capacity and complex project management skills to execute our vision of an integrated green anode material production.

“The successful upstream integration is designed to ensure that we have access to high-quality, responsible feedstock for decades to come, and provides battery and EV manufacturers with the assurance of a traceable, local, and carbon-neutral supply.”

NMG is developing a natural graphite operation, which is said to be supported by its location, vertical integration, cost structure, ESG credentials and experienced team.

The announcement comes as battery and EV manufacturers are looking for alternative graphite sources amid growing demand and potential production deficit in the next decade.

The company claimed that it is well-positioned to serve the North American and European markets with its large graphite deposit, advanced ecotechnologies, and production capacity.

Its Phase-1 operations, along with advantages including clean hydropower, logistical base and stable fiscal and political environment will support its proposition, said the company.

Furthermore, NMG said is designing a mine of the future, which aims to provide responsibly extracted, environmentally transformed, and locally sourced green anode material for battery and EV manufacturers.