Eni Invests $70MM in Canadian Battery Feedstock Project

Eni SpA has committed $70 million in equity investment to Nouveau Monde Graphite Inc (NMG) and plans to place an order of 15,000 tpa of graphite concentrate from phase 2 of NMG's Matawinie Mine project in Canada.

"The investment in NMG is consistent with Eni’s strategy to diversify its supply chains. In particular, it enables Eni to enter the critical minerals value chain through a partnership with a leading company in the sector, while leveraging its distinctive technological know-how", the Italian state-backed energy company said in an online statement.

"In addition, through this transaction, Eni will have the opportunity to negotiate exclusive supply agreements for graphite and active anode material. These will support Eni’s Gigafactory initiative to produce stationary lithium batteries, already underway in the industrial area of Brindisi".

Last year Eni and Seri Industrial SpA kicked off activities for a project to build a production hub for stationary lithium batteries in the Italian industrial area of Brindisi.

The project is planned to produce over 8 gigawatt hours a year of lithium-iron-phosphate batteries, primarily for stationary energy storage, using a water-based process.

Eni said in a press release September 24, 2025, "The project is currently in the engineering phase and undergoing economic, financial and authorization assessments, which are expected to be completed by the first quarter of 2026, before moving into the execution phase".

The project is under Eni Storage Systems, a joint venture between Eni (50 percent plus one share) and Seri Industrial subsidiary Fib.

In Toronto- and New York-listed NMG, Eni expects to comprise 11.5 percent of the share capital and will also have a board seat.

"The capital increase is aimed at supporting the development of the Matawinie Mine of high-quality natural graphite, a key feedstock for the battery sector, as well as other high-margin industrial segments", Eni said. "The Matawinie Mine forms the asset base for a vertically integrated project of natural graphite extraction and its refining at NMG’s Bécancour Battery Material Plant".

The mine is 120 kilometers (74.56 miles) north of Montréal, according to NMG.

Eni's investment in NMG is via a private placement in which the Quebec-based company expects to raise $213 million in total. The other subscribers in the capital raise, expected to be completed May 15, are Canada Growth Fund ($82 million) and the government of Quebec through Investissement Québec ($61 million).

NMG also said it has entered into a deal with a group of underwriters led by BMO Capital Markets and National Bank Capital Markets for a share issuance worth $84 million.

"Together with the previously announced senior project debt facilities of $335 million commitment and on the basis of accessing the facilities committed, the net proceeds from the equity financing, once available to the company, are expected to fully fund the Phase‑2 Matawinie Mine and positions NMG to advance toward final investment decision and construction", said a separate statement posted on NMG's website.

"Construction preparation, engineering and procurement have advanced with contracts awarded representing over 50 percent of the project’s CAPEX - within estimates of NMG's updated feasibility study for the Phase-2 Matawinie Mine in accordance with National Instrument 43-101", the statement added.

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