Panasonic is expanding its EV battery production in North America to meet the growing demand for EVs and create a more sustainable supply chain by increasing its use of locally sourced materials.
To achieve this, Panasonic has signed a seven-year offtake agreement with Nouveau Monde Graphite (NMG), an anode active material manufacturer, for the supply of natural graphite.
Graphite anodes are a leading component in EV batteries, and there are two main forms readily available on the market – natural and synthetic.
While synthetic has long been the choice of battery manufacturers, natural graphite advantages include a lower cost to acquire and a higher crystalline structure, making it more electrically and thermally conductive. Natural graphite also has a considerably lower environmental impact – according to research, the only emissions from natural graphite are those created during the mining process.
Under a “mine-to-battery-material” model, NMG will mine natural graphite from its Matawinie Mine in Quebec, Canada, to produce anode active materials at its battery material plant in Becancour, Quebec. These materials will support Panasonic as it attempts to build a robust supply chain in North America and advance its goal of reducing its carbon footprint to 50% of its 2022 levels by 2031.
In addition, Panasonic has announced it will invest in NMG. Panasonic will make an initial investment of $25 million to the company, and will provide additional funding up to $150 million with co-investors, subsequent to a maximum ownership threshold agreed between the relevant parties.
