MILAN, April 10 (Reuters) - Italy's Eni has agreed to acquire a minority stake in natural graphite producer Nouveau Monde Graphite for $70 million, giving it access to a critical material used in
Eni to Acquire Stake in Nouveau Monde Graphite with $70 Million Investment
Eni's Strategic Investment in Nouveau Monde Graphite
Overview of the Investment
MILAN, April 10 (Reuters) - Italy's Eni has agreed to acquire a minority stake in natural graphite producer Nouveau Monde Graphite for $70 million, giving it access to a critical material used in battery storage and other energy transition technologies.
Implications for the Critical Minerals Value Chain
Reducing Dependence on Chinese Materials
The investment in the Canadian company will allow the Italian energy group to enter the critical minerals value chain at a time when European companies are seeking to reduce their dependence on materials sourced from China.
Support for Eni's Gigafactory Initiative
The transaction will also give Eni the option to negotiate exclusive supply agreements for graphite and other materials to support its gigafactory initiative to produce stationary lithium batteries in southern Italy.
Details of the Capital Increase
Participation of Institutional Investors
The Italian group said the investment forms part of a $297 million capital increase at Nouveau Monde Graphite, alongside Canadian institutional investors Canada Growth Fund and Investissement Quebec, as well as a public equity raise.
Eni's Expected Stake and Board Representation
Following completion of the transaction, Eni is expected to hold about 11.5% of Nouveau Monde Graphite's share capital and will gain a seat on the company's board.
Future Plans and Project Development
Development of Matawinie Mine and Supply Chain Operations
Proceeds from the capital increase will support development of the Matawinie Mine, a high-quality natural graphite project, and the company's operations across the supply chain including refining at its Becancour Battery Material Plant.
Shareholder Approval and Timeline
The transaction is subject to approval by Nouveau Monde Graphite's shareholders at an annual meeting scheduled for the second half of May 2026.
Reporting and Editorial Credits
(Reporting by Francesca Landini; Editing by Jan Harvey)
