In May 2026, Nouveau Monde Graphite (NYSE:NMG) received funding of US$645 million ($912.77 million) to advance the phase two Matawinie Mine in Québec, Canada, a significant step for the company and the graphite industry overall as the metal faces a structural deficit by the end of the decade.
Once complete, the Matawinie Mine will be the largest graphite mine in North America and the G7, supplying up to 106,000 tonnes of graphite annually.
Graphite demand is growing and, depending on the direction of battery chemistry evolution, the IEA notes that graphite may see between six and 30 times higher demand in the future.
The growth of electric vehicle (EV) sales is also projected to see graphite demand grow from 140,000 tonnes in 2020 to more than 3.5 million tonnes in 2040.
China currently dominates both the mining and refining of graphite, supplying 79% of total mined supply and 87% of refined, battery-grade supply.
Beijing’s export restrictions implemented in 2023 brought new concern over supply security and diversification, with graphite highlighted as a key potential bottleneck impacting the growth of EV uptake.
Benchmark Minerals projects that in the short to medium term, supply growth will outpace demand through the end of the decade, but that will soon turn to a supply deficit from the 2030s on, with new mine supply needed to close that gap.
Nouveau Monde’s Matawinie Mine is one significant piece of that supply puzzle. It has already been identified as a major project of national interest by the Government of Canada, due to its future as one of the largest integrated natural graphite production platforms in the G7.
The company plans to reach a final investment decision (FID) in H2 2026 for its battery materials plant in Bécancour as well, which already has a planned capacity of 13,000 tonnes per year committed to offtake by Panasonic Energy.
Graphite is the key anode material in lithium-ion batteries by weight, accounting for about 95% of the anode material, with natural graphite preferred over synthetic graphite due to its lower cost and smaller carbon footprint.
The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has reported that more than 80% of future battery demand is expected to be derived from EVs alone, creating significant pressure on global graphite supply chains, as previously reported.
Critical projects shaping the future of graphite supply
New supply is emerging in East Africa, Canada, the US, and Australia at mixed paces, with Benchmark noting that permitting delays, financing constraints, and infrastructure limitations mean that a number of projects might not reach production until the end of the decade.
Syrah Resources (ASX:SYR) is already in production. Syrah is a vertically integrated company focused on natural graphite and active anode material production to meet global decarbonisation needs, underpinned by the Balama Graphite Operation in Mozambique and the Vidalia Active Anode Material Facility in Louisiana, US.
Balama contains reserves of 110 million tonnes (Mt) @ 16% total graphitic carbon (TGC) and a resource of 1,035Mt @ 12% TGC. It has a projected mine life of 50 years.
In December 2025, Syrah reported 67,000 tonnes of natural graphite produced at Balama, with 55,000 tonnes sold to customers in ex-China destinations throughout the year.
The company aims to be the first major integrated ex-China producer of natural graphite active anode materials, a strategy underpinned by the Vidalia processing facility.
Titan Mining (NYSE-A:TII) has emerged as the US’s first end-to-end producer of natural flake graphite in 70 years with its Kilbourne Graphite Demonstration Facility in New York. Processing began in December 2025.
The company has targeted production at 40,000 tonnes per annum, noting that this should potentially fulfill around 50% of annual US demand.
Titan has received significant backing from US Government agencies for the project, including a US$120 million letter of interest from the Export-Import Bank of the United States (EXIM) and an Enhanced Use Lease from the US Army for two strategic defence installations, meaning Titan will have the first commercial graphite purification facility situated on US Army installations. This coordinated effort is part of the US Government’s push to end the country’s 100% import reliance for graphite.
Graphite One (TSX-V:GPH) is currently advancing what the United States Geological Survey (USGS) calls the US’s largest natural graphite deposit, its Graphite Creek Project in Alaska.
Similar to Titan, Graphite One is focused on delivering an integrated graphite supply chain through its Graphite Creek Project and active anode material (AAM) plant in Ohio.
Graphite One has also seen significant future funding from EXIM, with around US$2.07 billion in non-binding letters of interest to facilitate the construction of the mine and the Ohio AAM facility.
E-Power Resources (CSE:EPR) sits at a unique part of the graphite supply chain, with a pure-play focus on graphite exploration with the Tetepisca Flake Graphite Project in Québec.
The company’s strategy is to drill small but targeted resources, connecting the right kind of graphite for a particular manufacturer. E-Power will advance the project in a directed way, matching parts of the project with potential partners.
The strategy keeps the Tetepisca Project as capital-light as possible while still positioning it to meet future supply needs as the deficit emerges towards the end of the decade.
Graphite’s role as the dominant material in lithium-ion batteries makes it one of the most strategically important critical minerals of the decade. We’re just now seeing the emergence of projects outside China advancing to commercial production.
Nouveau Monde Graphite, Titan Mining, Graphite One, and E-Power Resources are part of a small but growing cohort working to diversify supply and establish strong ex-China supply chains, aiming to ease the graphite bottleneck that threatens global EV and battery growth.
Write to Amy Rotman at Mining.com.au
Images: Nouveau Monde Graphite, Syrah Resources
