OSAKA, Japan – Panasonic Energy Co., Ltd., a Panasonic Group Company, announced that it has signed a seven-year offtake agreement for the supply of natural graphite with Nouveau Monde Graphite Inc. (“NMG”; Quebec, Canada), a manufacturer of anode active material. In addition, Panasonic Energy announced plans to invest in NMG, starting with a payment of USD 25 million. Separately, Mitsui & Co., Ltd. (“Mitsui”; Tokyo, Japan) plans to redeem and cancel its existing convertible note and subscribe to NMG’s shares. Panasonic Energy subsequently plans to invest an additional funding worth USD 150 million with co-investors, subject to a maximum ownership threshold agreed between the relevant parties.
Panasonic Energy is expanding its EV battery production in North America, including by increasing its use of locally sourced materials for a more sustainable supply chain, aiming to meet the growing global demand for EVs. The company signed a memorandum of understanding (MOU) with NMG regarding the offtake agreement in October 2022, and subsequently advanced technological development and process optimization in line with Panasonic Energy’s specifications and quality standards for the development of integrated graphite production in North America. As a result, the two companies have now entered into a supply agreement.
Under a “mine-to-battery-material” model, NMG will produce natural graphite from its Matawinie Mine in Quebec to produce anode active materials at its battery material plant in Bécancour, Quebec. This vertically integrated model positions NMG as an ideal partner to support Panasonic Energy’s plan to build a robust supply chain in North America. Canada is known for clean energy initiatives, including Quebec’s use of renewable sources to generate 99% of the province’s electricity. NMG’s carbon-neutral graphite material will not only strengthen Panasonic Energy’s supply chain in North America, but also support the company’s goal of reducing its carbon footprint to 50% of its 2022 level by 2031.
The governments of Japan and Canada deepened their bilateral partnership by signing a memorandum of cooperation (MOC) regarding battery supply chains in September 2023. As one of the outcomes, Panasonic Energy now hopes to support greater global adoption of EVs by providing high-quality, high-capacity batteries that will extend the driving range of EVs in the North American market, including the United States, which boasts the second-highest number of new car sales worldwide.
Leveraging its advanced battery technologies and extensive expertise, Panasonic Energy is committed to working with diverse partners to further the global lithium-ion battery industry, ultimately to contribute to a more sustainable society.
Earlier this month, Panasonic Energy Co., Ltd. announced it had signed a binding off-take agreement with NOVONIX Limited (“NOVONIX”; Queensland, Australia) for the supply of synthetic graphite, the main component of the anodes of lithium-ion batteries used in electric vehicles (EVs). In line with Panasonic Energy’s Medium- to Long-term Strategy to strengthen its North America-focused supply chain and reduce its environmental impact, the synthetic graphite will be utilized by Panasonic Energy’s EV battery manufacturing facilities in the U.S., with shipments scheduled to start in 2025 from NOVONIX’s facility in Tennessee.
By 2031, Panasonic Energy aims to reduce the carbon footprint of the entire lithium-ion battery supply chain for EVs by 50% compared to 2022 levels. The majority of emissions arise from resource mining, raw material processing, and logistics. Therefore, in addition to reducing the carbon footprint generated during battery manufacturing through the carbon neutralization of all factories, Panasonic Energy actively addresses environmental impact reduction in the upstream supply chain. This agreement will allow Panasonic Energy to leverage NOVONIX’s innovative environmental technology and procure 10,000 tons of graphite from NOVONIX’s North American operations over a period of four years, a strategically important step in the reduction of the environmental impact of its supply chain.
There are two types of graphite for lithium-ion batteries: natural graphite and synthetic graphite. Synthetic graphite offers enhanced battery durability, allowing for reliable performance during repeated charging and discharging cycles. Synthetic graphite is traditionally produced by means of lengthy high-temperature treatment in an Acheson furnace, lasting 30 days per production cycle, with temperatures reaching up to 3,000℃. However, this production method poses challenges due to its high energy consumption and resulting CO2 emissions, and companies are actively developing innovative production methods to overcome these drawbacks.
NOVONIX’s proprietary graphitization furnaces are the first of its kind for large-scale production, enabling efficient mass production of synthetic graphite in just around three days per cycle. This innovation is expected to reduce the levels of CO2 emitted during the production of synthetic graphite compared to conventional Acheson furnaces. It represents a significant contribution towards Panasonic Energy’s goal of halving its carbon footprint, and demonstrates the company’s commitment to environmental sustainability.
In the North American market, encompassing the U.S. as the world’s second-largest for new car sales, Panasonic Energy aims to facilitate the widespread adoption of EVs by providing high-quality and high-capacity batteries that offer extended driving range. The company will leverage its expertise and experience to take the lead in the lithium-ion battery industry. Through strategic partnerships, it will accelerate its efforts towards achieving zero emissions and helping build a sustainable society.
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