What are the main updates at the Lac des Iles mine?

The main takeaway on Lac des Iles is that it has moved from being a mine that was supposed to close in 2024 to becoming a cornerstone asset for the company. Let me take a step back, though. After acquiring Lac des Iles in April 2022, a mine with more than 20 years of operational history in the graphite market, we realized that, in essence, there had been a huge underinvestment in exploration on the property. We recently reviewed the historical drilling and MAG surveys that show high-potential targets and interesting intersections on the property. This is what led us to the drilling program we kicked off in May 2023. With this program, we are hoping to increase reserves, extend mine life, and expand production from the existing mine. Our recent acquisition at Mousseau – where we will be looking at a resource estimate in the short term - will support those expansion plans. The headline is that Lac des Iles now has long-term potential, which is exciting and key to our strategy of being a long-term, sustainable player in the mine-to-battery market for graphite. It’s an integrated strategy that will see our graphite feed into a battery anode plant we plan to build at Baie-Comeau, which will supply 200,000 t/y in battery anode material (BAM) for the North American battery market. The BAM we produce at Baie-Comeau will be clean and green, powered by hydroelectric power in Québec.

Can you touch upon Northern Graphite’s approach to innovation?

Graphite mining and processing is an exercise in innovation itself. The final graphite product is specific to what the end user needs, so we need to process it in a way that can be used by our different customers. It is a little more complex than other minerals, so every day we are thinking about where the product will end in the market, as lubricants and battery anodes require different approaches, for instance.

How do you view the supply-demand fundamentals for graphite?

Simply put, there is not going to be enough graphite production to support the green energy transition and reach net-zero targets for the planet. In North America, the deficit is even larger. The demand for battery anode materials due to the shift to EVs will in itself drive graphite demand up 1,000%. Graphite is 48% of the anode and conservative estimates suggest graphite production needs to grow threefold by 2030 to support that shift. We are the only producers in North America producing natural graphite, so we will be key in answering that challenge.

What is Québec’s role in a successful green transition?

Québec is a mining-friendly jurisdiction that is setting itself up to be a leader in the green transition. It has everything going for it. It has the mines, the resources, and clean, green, and affordable hydroelectric power. Just as importantly, it has shown itself to have the political will to champion the success of the energy transition. That is the reason why we are building what will be the biggest battery anode processing facility outside of China here in Québec. Securing our land there in June was key, as it is a key part of our mine-to-battery strategy.

Can you expand on the conversations you are having with the downstream segment of the industry?

With the energy transition, we are seeing a change in how the downstream segment is looking to buy products. Car manufacturers are excited to come to secure the product upstream. As more is going into the battery market, the demand in the traditional market will also skyrocket. This will lead to natural organic growth. Our thought process on expansion at all our plants is modular, so we can increase our production as the demand increases, as opposed to building a large capacity plant now and not being able to sell the product, or underutilizing the plant.

What will drive growth for Northern Graphite?

Building our resources and extending the mine life at Lac des Iles, understanding the Mousseau deposit, and most importantly, starting to work on Baie-Comeau. We have secured the land, and the next stage is commencing our PEA.