Caterpillar and NMG strengthen their zero emissions collaboration

On the foundation of their 2021 collaboration agreement and of technical work achieved together over the past two years, Nouveau Monde Graphite Inc (NMG) and Caterpillar Inc have signed definitive agreements to supply NMG’s Matawinie Mine with an integrated solution that covers a zero-exhaust emission fleet, supporting infrastructure, and service.

Caterpillar is set to be NMG’s supplier of heavy mining equipment, supporting the progressive transition from traditional models to Cat® zero-exhaust emission machines as they become available. Moreover, NMG and Caterpillar have signed a non-binding memorandum of understanding to advance commercial discussions targeting NMG’s active anode material. Through this offtake MoU, a full circular value chain could be established whereas NMG would supply carbon-neutral graphite materials to Caterpillar for the development of its secure, resilient, and sustainable battery supply chain that would serve to electrify heavy vehicles, including NMG’s Matawinie fleet.

Arne H Frandsen, Chair of NMG, said: “Caterpillar is providing NMG with a comprehensive solution for the Company’s Matawinie Mine, de-risking the adoption of new technologies, and optimising operational excellence through integrated infrastructure. At every stage of development, management has worked to expand the field of possibilities for sustainability in our sector. And now, our new commercial relationship for NMG’s battery materials further elevates the impact of our collaboration with Caterpillar and the relevance of NMG’s business strategy. Today, we raise the bar again!”

Denise Johnson, Caterpillar Group President, commented: “I’m proud of the collaboration and work the NMG and Caterpillar teams have accomplished together in support of the Matawinie site. This project is an exciting one as it highlights what is possible when an effective energy transition roadmap is implemented that bridges the traditional product line to an integrated, electrified site of the future.”

Eric Desaulniers, Founder, President, and CEO of NMG, reacted:”Not only will we benefit from Caterpillar’s stellar expertise, renowned products, and latest technological developments, but our team will also be at the forefront of the electric revolution in the sector, sharing insight, testing equipment for further optimization, and providing battery materials to support electrification beyond our mine. This collaboration truly reflects our vision for leadership and unified efforts to advance responsible mining practices and global decarbonisation. I salute the commitment of Denise and Caterpillar’s team, without which our ambition would not have materialised so efficiently.”

As part of the agreements, Caterpillar and NMG have mapped the development, and testing of equipment and infrastructure at the Company’s Matawinie Mine in Saint-Michel-des-Saints, Québec, Canada. Equipment in commercial production will be leveraged at first to support operations during the pre-production phase and early production years and are set to be progressively replaced with Cat® zero-exhaust emission machines as they become available.

With the objective of having realised a complete all-electric transition by year 5 of Matawinie commercial operations, technical teams will work in close collaboration to test Caterpillar’s Early Learner models and pilot units and support technology development. NMG will make use of these machines in actual mining operations and gather data from on-site utilisation in a variety of weather, terrain, and operational conditions. Feedback from NMG’s mining operations should help further advance the development of electrified machines and sites.

Depending on the commercialisation of Cat® zero-exhaust emission machines, Caterpillar will reserve production slots, which should enable the company to benefit from timely deliveries and technology enhancements throughout the duration of the contract. The agreements encompass machines such as hydraulic excavators, mining trucks, wheel loaders, dozers, and motor graders, as well as charging and energy storage infrastructure and equipment maintenance services.

NMG and Caterpillar’s Job Site Solutions have agreed on a novel solution to reduce NMG’s initial capital intensity for the Matawinie Mine. The solution provides access to equipment through an hourly fee based on usage and includes asset management support to help improve uptime, predictability, and efficiency. Caterpillar, together with Toromont Industries Ltd, an authorised Cat dealer, will manage the maintenance and repair strategy for the equipment to maximise machine availability. NMG will also have the opportunity to lease or acquire machines if desired, through Toromont.

Electrification has made tremendous progress across heavy-industry sectors in recent years, supported by active innovation and strong decarbonisation commitments (International Energy Agency, May 2022). Indeed, in 2022, Caterpillar unveiled its first prototype of a battery-powered large mining truck, demonstrating the most recent advancement in technology and the extent of electric solutions by operating fully loaded to its rated capacity. Through this next stage of their collaboration, Caterpillar says it intends to help NMG advance the Company’s Net Zero objectives.

The offtake MoU between NMG and Caterpillar targets NMG’s active anode material to be produced at the Company’s Matawinie Mine and Bécancour Battery Material Plant.

Rod Shurman, Caterpillar Senior Vice President with responsibility for the Electrification and Advanced Power Solutions Division, noted: “A secure, resilient, and sustainable supply of battery materials is critical to actualising the opportunities that electrification represents for our customers. This collaboration with NMG is an example of how Caterpillar is intentionally building out our value chain to support our customers’ sustainability objectives and further establish our role in the global energy transition.”

Establishing a fully integrated and electrified production of natural graphite, from ore to battery materials, NMG’s solutions have demonstrated an industry-leading environmental footprint in a recent life cycle assessment. NMG’s planned all-electric operations powered by renewable energy combined with clean processing technologies are set to generate advanced materials with an exceptionally low climate change impact, in line with global decarbonisation efforts.