NMG Identified as Industry-Leading Natural Graphite Producer in Benchmark Mineral Intelligence’s Sustainability Index.
Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) has been identified as “Industry Leading” in Benchmark Mineral Intelligence’s (“Benchmark”) latest ESG assessment of critical minerals for battery materials focusing on natural graphite. The Sustainability Index developed by Benchmark’s team of expert ESG analysts aims to inform battery and electric vehicle (“EV”) manufacturers on the environmental, ethical, and sound management practices of producers in a push toward responsible and transparent production. NMG is the only company to have been qualified in the “Industry Leading” category according to Benchmark’s comprehensive examination of ESG practices, transparency, and engagement.
Arne H Frandsen, Chair of NMG, declared:
Legislation, consumer preferences, geopolitics, and industry standards are all converging toward trusted and ESG-compliant sources of critical minerals and advanced materials.
“Benchmark’s Sustainability Index sheds a new light on these important questions, studying the multiple facets of ESG performance. NMG’s top position, with a significant advance over peers, demonstrates the commitment and depth of our sustainability promise to customers, regulators, and stakeholders. Congratulations to the team for such a recognition!”
Charlotte Selvey Miller, Head of Sustainability at Benchmark, commented:
We’re pleased to release the first-of-its-kind Sustainability Index, specifically designed for the lithium-ion battery supply chain.
“This in-depth assessment is rooted by our multi-stakeholder approach in order to identify key risks and areas for companies operating, or planning to operate, in this space. The “Industry Leading” classification is given to companies who score over 70/100 in our meticulous assessment of ESG indicators and we aim to continue developing the Index to allow companies to keep striving towards best practices in ESG transparency, disclosure, and performance.”
Eric Desaulniers, Founder, President and CEO of NMG, said:
Sustainability is core to our business model; we are climate-oriented by design and deeply invested in a partnered and inclusive approach to responsible mining and manufacturing.
“This rating positions NMG at the forefront of the battery and EV market for environmental and ethical sources of advanced materials. We are setting a new standard for our sector together with our potential customers who share this vision of a green, clean, and just value chain for the electric revolution.”
ESG Performance and Beyond
Steered by Benchmark’s team of expert ESG analysts and LCA practitioners, the ESG assessment of the natural graphite industry examines the sustainability credentials of over 60 flake graphite companies. The Sustainability Index is a composite index measuring the ESG transparency of natural graphite industry players and their commitments to best practices. Companies are assessed against 79 ESG indicators across 26 ESG topics of concern, and classified into 4 tiers: Industry Leading, Good Practice, Moderate Visibility and Limited Visibility. Among all Chinese, African, and Western flake graphite producers, NMG is the only company to have obtained the “Industry Leading” rank.
Benchmark also released a Graphite Global LCA to calculate the environmental impacts of graphite anode material based on natural and synthetic sources, production regions and end-users markets.
In 2022, NMG published the results of an ISO-compliant life cycle assessment of the Company’s planned operations demonstrating that NMG’s active anode material production is among the cleanest in the world, an expected Global Warming Potential of 1.23 kg CO2 equivalent per kg, an impact up to 11 times smaller than that of benchmarked production.
Extraction and concentration | Advanced manufacturing | GWP (kg CO2 eq per kg) | GWP of NMG’s CSPG (kg CO2 eq per kg) | |
China | China | 14.1 | 1.23 | |
Mozambique | U.S. | 6.1 | ||
Sweden | Sweden | 3.1 | ||
Streamlined Life Cycle Assessment Study of Global Anode Grade Natural Graphite Manufacturing, Minviro, March 2022. | LCA of Natural Graphite-Based Products Manufactured by NMG, CT Consultant, July 2022. |
These results provide a competitive advantage for NMG as potential customers seek to secure sources of low‑carbon supply to reduce their Scope 3 emissions and comply with increasingly stringent environmental regulations.
In partnership with First Nations, communities, and key stakeholders, NMG strives to be a model in the development of its ore-to-battery-material operations to drive greater sustainability into its sector and the industries it serves. The Company prioritizes the wellbeing of employees, business partners, and communities as well as environmental stewardship. The Company regards diversity and robust governance as important drivers of strategy, creative thinking, and business performance.
Responsible mining practices, such as dry-stacking and co-disposal of tailings, backfilling, progressive restoration and water stewardship, greener manufacturing technologies and innovation are embedded into the Company’s business model. Leveraging Québec’s hydroelectricity, the Company is committed to adopting clean energy sources and technologies at every level, as demonstrated by its collaboration with Caterpillar Inc. to develop an integrated solution covering a zero-exhaust emission fleet, infrastructure, and services for NMG’s Matawinie Mine.
Geopolitics Reinforce Responsible Sourcing of Graphite
The release of Benchmark’s Graphite Sustainability Index comes as China and the U.S. sharpen their respective trade instruments targeting graphite materials and other critical minerals. China previously announced restrictions on Chinese graphite materials came into effect on December 1st, 2023. Chinese companies must now obtain a government-issued export permit to sell certain graphite products internationally. China currently controls 65% of the natural graphite global production (US Geological Survey, January 2023) and over 99% of spherical graphite refining for lithium-ion batteries (Benchmark Mineral Intelligence, Q3-2023).
On the same day, the U.S. Government issued its guidance as to battery material sources from which foreign entities of concern (“FEOC”) are not eligible for EV tax credits under the Inflation Reduction Act (“IRA”). Manufacturing companies’ location, ownership, as well as technology licenses tied to China, North Korea, Iran, and Russia are specifically targeted by this measure.
These recent political developments reaffirm the importance of establishing of a local, resilient, and ESG-compliant supply chain of graphite to support battery and EV production. NMG is targeted to become the largest natural graphite producer in North America, fully integrated from ore to anode material, and with demonstrated sustainability performance.
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NMG Identified as Industry-Leading Natural Graphite Producer in Benchmark Mineral Intelligence’s Sustainability Index. source