Nouveau Monde Graphite Inc. said May 17 that it reached an agreement with Hydro-Québec for a license and a research and development agreement for the use of technologies developed by Hydro-Québec in processing graphite for lithium-ion batteries.
Under the deal, the companies will develop a functional and cost-effective process to transform flake graphite into high-quality graphite products suitable for lithium-ion batteries.
Hydro-Québec will help Nouveau Monde set up a small-scale process at its demonstration plant in Saint-Michel-des-Saints, Quebec, which will start by the end of the year. Nouveau Monde will subsequently build an anode material fabrication plant with a capacity of up to 100,000 tonnes per year if the small-scale process proves successful.
Any new intellectual property developed from the consortium will be held by both companies on a 50/50 basis. Nouveau Monde intends to reach agreements with graphite suppliers for the supply of feed into the fabrication plant, in addition to material sourced from its own mining projects.
In connection with the agreement, Nouveau Monde closed a nonbrokered private placement of 6,666,667 units at 30 Canadian cents each for gross proceeds of C$2 million. Each unit consisted of 1 common share and half of a common share purchase warrant. Each full warrant is redeemable for 1 common share at 40 cents for 24 months.