Canadian battery metals company Nouveau Monde Graphite (NMG) is targeting 500 000 t/y of graphite concentrate over 24 years at its Uatnan mining project, in Quebec, fitting right into the group’s integrated operating model that seeks to cater for the Western world’s electric vehicle and battery manufacturers.

“The market is actively searching for alternative sources of graphite, in significant volumes, to reduce its dependence on Chinese-controlled supply chains,” NMG chairperson Arne Frandsen said on Thursday.

Citing information by Benchmark, NMG notes that with 7 940 GWh of global lithium-ion battery production capacity projected by 2030, demand for advanced materials is set to increase up to fivefold. Graphite is forecast to outpace other battery metals at 10.36-million tonnes a year.

NMG on Thursday announced the results of the preliminary economic assessment (PEA) for Uatnan, which shows that the project is technically feasible, as well as economically viable.

The PEA yielded an aftertax net present value of C$2.17-billion and an aftertax internal rate of return of 25.9%. Initial capital expenditure of C$1.42-billion is required.

With costs estimated at C$268/t and concentrate selling prices of $1 100/t, Uatnan is forecast to generate $550-million a year in revenue.

On the basis of these results, NMG intends to launch an updated feasibility study in compliance with the option and joint venture agreement signed with Mason Graphite.

The Uatnan project leverages the Lac Guéret deposit, wholly owned by Mason and subject to the option agreement with NMG.

“The Uatnan mining project fits perfectly into the company's development plan, providing a large resource to complement our Phase-2 Matawinie mine and Bécancour battery material plant. Now more than ever, NMG is demonstrating its leadership in striving to establish North America's largest natural graphite production to serve the energy transition,” said Frandsen.