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With pressure on global automakers to meet increasingly aggressive measures to move car owners from fossil fuels to clean decarbonization targets, electric vehicle (EV) investment is growing exponentially. 

But with more charging stations being built and improvements in battery technology and pricing, EV sales may continue to see a steep rise, with one caveat – according to some, there’s not enough metal to create the batteries needed to fuel that growth. That shortage of essential raw materials has brought global competition from companies developing new and increasing lithium, nickel, cobalt, and graphite deposits.    

The good news is that batteries are continuing to evolve, with the average battery energy density rising at 7% per year and new chemistries hitting the market at an increasingly rapid pace. Charging speeds, a big detractor for many, are getting increasingly faster with maximum rates rising.

The raw material facing the most significant growth in demand as companies continue to look to new battery technology is graphite. Once only used for auto brake linings, gaskets, and clutches, graphite is fundamental to EV battery chemistry, and there are no substitutes. 

Focusing on low-cost operations and strict environmental, social, and governance (ESG) standards, Nouveau Monde’s goals include the lofty and what they believe to be the reachable pursuit of becoming a key strategic supplier to the world’s leading battery and automobile manufacturers. 

“As electrification becomes mainstream and ESG principles dominate asset managers’ and investors’ consideration, Nouveau Monde has stepped up as a recognized contributor to the decarbonization effort. 2021 was a structural year as we lined the building blocks that will support the next stage of our development,” Nouveau Monde Chairman Arne H. Frandsen said.  

Demand to Outweigh Supply

Predictions highlight that graphite demand will exceed the global supply by 400,000 tonnes by 2026, however, with Nouveau Monde’s plan to begin commercial production by 2024, it expects to be the largest producer in North America to help offset this imbalance. 

Nouveau Monde believes it is positioning itself as a turn-key, local supply of carbon-neutral anode material to cater to the growing North American and European battery and EV markets.

To learn more about Nouveau Monde Graphite, Inc., go to www.nmg.com.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.