Graphite Crisis: NMG Challenges China's 95% Supply Stranglehold

Graphite is emerging as the critical mineral powering the technologies of tomorrow, from electric vehicle batteries and energy storage systems to defense applications, yet faces a severe supply chain vulnerability with China controlling approximately 95% of the world's spherical graphite supply. The World Bank projects demand for graphite in energy storage alone will soar by 500% by 2050, creating what the World Bank identifies as one of the most indispensable yet overlooked resources of our time. This concentration of supply creates critical vulnerabilities for the U.S., Canada, Europe, Japan, and Australia, with zero U.S. production currently existing, raising alarms about price shocks, supply disruptions, and environmental concerns amid growing geopolitical tensions.

Nouveau Monde Graphite Inc. (NYSE: NMG), a Canada-based mining and processing company, is positioning itself as North America's first fully integrated, carbon-neutral producer of natural graphite to address this supply gap. The company is building a vertically integrated supply chain to serve the booming battery market, benefiting from the U.S. Department of Commerce's planned 160% duties on Chinese graphite materials that are driving manufacturers to seek local alternatives. NMG has already established demonstration-scale operations, allowing product qualification and process refinement, while securing permits and completing an updated feasibility study that confirms strong project economics for its flagship Matawinie Mine and Becancour Battery Material Plant.

Under President & CEO Eric Desaulniers' leadership, NMG is advancing toward a final investment decision (FID) on its Phase-2 build-out, with the Matawinie Mine projected to produce approximately 106,000 tons per year of flake graphite. The company has attracted strategic and institutional financing interest and maintains active engagement with global OEMs, suppliers, customers, and governments. As demand surges and governments prioritize secure, sustainable mineral supply chains, NMG represents a first-mover opportunity in a sector where North America currently lacks domestic production, positioning investors to capitalize on the critical minerals onshoring trend while supporting energy security and technological advancement.