Battery materials developer Nouveau Monde Graphite (NMG) has executed an updated binding offtake and marketing framework with the government of Canada for the Phase-2 Matawinie graphite project in Québec, strengthening the project’s path to final investment decision (FID).

The agreement, formalised through a long-form term sheet with Public Services and Procurement Canada, outlines the principal commercial terms for the supply, storage and resale of graphite concentrate from the planned mine.

Under the framework, Canada has committed to purchase 30 000 t/y of flake graphite concentrate on a take-or-pay basis over a seven-year period, subject to customary conditions precedent, including government approvals and a positive FID.

Pricing for the committed volumes will be based on a North American fixed price, with yearly adjustments linked to inflation. The structure also allows NMG to resell Canada’s allocated volumes, with a 50:50 upside-sharing mechanism on proceeds above the agreed price, while also providing optional storage capacity for the government.

Founder, president and CEO Eric Desaulniers said the agreement was another step towards securing the project’s financing and commercial foundation.

“This updated framework with the government of Canada is another key step in reinforcing the bankability of our Phase-2 Matawinie mine and our positioning among the G7 and allied countries as a local, dependable, and responsible graphite source,” he said.

The Matawinie project forms part of the company’s integrated ore-to-processed graphite strategy in Québec, aimed at supplying battery and advanced materials markets.

The government framework complements existing offtake agreements with Panasonic Energy and Traxys, which together account for more than 70% of the project’s planned graphite concentrate output.

In parallel, project financing is advancing, with a $335-million senior secured debt commitment from Export Development Canada and the Canada Infrastructure Bank.

The company said the funding package, together with long-term offtake arrangements and permitting progress, supports a clear pathway to FID for the project.