Canada breaks ground on G7’s largest graphite mine in Quebec

The mine, located in Saint-Michel-des-Saints, is expected to produce up to 106,000 tonnes of graphite annually once operational, supplying material used in electric vehicle batteries, energy storage systems and aerospace technologies.

The project is part of Canada’s broader push to strengthen domestic critical minerals production and reduce reliance on foreign supply chains, particularly as global demand for battery materials rises.

The federal government said the project would create more than 1,000 jobs and attract nearly C$2 billion ($1.46 billion) in investment.

Nouveau Monde Graphite plans to integrate the mine with a battery material processing plant in Bécancour, Quebec, creating what the company and government described as Canada’s first fully integrated graphite operation.

The government also announced a seven-year agreement to purchase 30,000 tonnes of graphite concentrate annually from the mine to support national critical mineral supply chains.

Ottawa said the project would receive a C$459 million financing package from Export Development Canada and the Canada Infrastructure Bank, in addition to earlier support from the Canada Growth Fund.

Natural Resources Canada will also provide C$4.4 million to help deploy electric-powered mining equipment at the site, replacing diesel-powered machinery.

The government said the mine and processing facilities would operate primarily on hydroelectricity, lowering greenhouse gas emissions compared with conventional graphite production methods.

“Canada has what the world wants, and we’re moving at speed to get it to market,” Carney said in a statement.

The project was referred to Canada’s Major Projects Office less than six months ago as part of a federal effort to accelerate approvals for strategic infrastructure and resource developments.