Canada steps on the gas with battery metals: Graphano Energy, Nouveau Monde Graphite, Umicore

Industry signs purchase agreements for graphite

The Canadian company Nouveau Monde Graphite operates the Matawinie mine, where it produces graphite flakes in the first phase. Purchase agreements for the second phase were recently signed, and in addition to the Canadian government, Panasonic Energy and Traxys were secured as customers. This means that almost the entire production of Phase 2 has been sold in advance. This step gives Nouveau Monde planning security. Although the Company has recently reported weak quarterly figures, including losses, due to its investments, investors are showing interest, underlining the growing importance of graphite projects.

Graphano Energy scores with geology and cooperation

Graphano Energy is also successfully advancing a graphite project in Canada. The Lac-Aux-Bouleaux/Lac-Saguay project in Québec is situated adjacent to Northern Graphite's producing Lac-des-Îles graphite mine and benefits from a processing agreement that provides access to existing infrastructure. In July 2025, Graphano released its first resource estimate of 1.64 million tonnes Cg in the indicated category and 1.58 million tonnes in the inferred category. The grades are 7% in each case, which is considered high grade. The graphite is close to surface and offers good mining opportunities. CEO Luisa Moreno emphasizes that the results of the resource estimate underscore the potential of the deposit and reinforce the Company's plans to rapidly develop the project toward production.

Graphano aims to build a fully integrated value chain for battery graphite – from processing to refined end products. In cooperation with neighbor Northern Graphite, Graphano is working on joint resource development and will also have access to its neighbor's processing facility. Northern CEO Hugues Jacquemin calls the collaboration a "win-win" because the combination of Northern's processing capabilities and Graphano's promising deposits could increase the chances of success for both companies and shorten the development period. Graphano CEO Moreno confirms that the cooperation accelerates the development plan and reduces costs: "This agreement helps to shorten our schedule and reduce investment costs. In addition, the cooperation strengthens Canada's ability to meet the growing global demand for clean, sustainable graphite."

First the supply chain, then the investments?

The chances are good that Graphano, like Nouveau Monde Graphite, will be able to sign off-take agreements with future customers. The Company's deposits are considered high-grade – in some cases, Cg contents of 11.3% over 8.6 m have already been proven. Graphano could be a suitable partner for industrial companies looking to advance battery production. One such company is the Belgian Umicore Group. Umicore is a Belgian specialty chemicals group and one of the world's largest suppliers of battery cathode materials and recycling solutions for rechargeable batteries. The Company supplies nickel, cobalt, and manganese cathodes to vehicle manufacturers and has also been involved in building new capacity in North America. However, Umicore is being hit by the current slump in demand for electric vehicles: adjusted earnings fell significantly in the 2024 financial year. As a result, management has cut back on investments, postponed a major battery recycling project in Europe, and paused construction of the planned Canadian cathode factory at the Loyalist site.

Graphano as a potential beneficiary of raw material extraction

The example of Umicore shows that the first companies to enter a market are not automatically successful. China's heavy dependence on raw materials in many areas, as well as the sluggish transition to electric vehicles in recent years, has demonstrated that it is not possible without domestic raw materials from secure sources. These raw materials are gradually being extracted. Positive examples in Canada include Nouveau Monde and Graphano Energy. Only when the supply of raw materials is secured will the industry have real planning security. The initiative of the G7 energy ministers has recently set the course once again for stable supply chains for battery metals. The up-and-coming company Graphano Energy could be perfectly positioned to benefit from this new tailwind. The stock has already gained ground in recent trading days. With a market capitalization in the low single digits, Graphano remains a micro-cap with a promising business model.