• NMG will maintain a carbon-neutral status and fully transition to a Net Zero profile by no later than 2030 through emission reduction and an innovative offsetting strategy
• Proprietary technologies, clean hydroelectricity, responsible mining, R&D and continuous improvement are set to drive meaningful GHG reductions for NMG
• NMG will develop a portfolio of compensation projects that support sequestration, nature-based solutions and partnerships with local communities
• NMG is committed to providing the marketplace with sustainably sourced and manufactured graphite-based solutions with a traceable and carbon-neutral footprint to power global decarbonization

MONTRÉAL, CANADA, February 24, 2024 – In line with its prior commitments, Nouveau Monde Graphite Inc. (“NMG”, “Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) releases its Climate Action Plan that maps its transition from a carbon-neutral production to a Net-Zero business model, from ore to battery materials. From the Company’s founding to today, NMG is working towards building a mining and advanced manufacturing operation anchored in sustainable development principles, a zero-harm philosophy and business practices aligned with global decarbonization efforts. NMG is establishing an ambitious and transparent Climate Action Plan that reflects expectations and dialogue with its stakeholders ahead of its full-scale commercial activities.

NMG is diligently pursuing its development to serve the growing electric vehicle (“EV”) and cleantech markets with carbon-neutral battery materials. The Company firmly believes that its operations and corporate activities can contribute to the joint effort to limit global warming to 1.5 °C by 2050, as agreed to in the Paris Agreement.

Arne H Frandsen, Chair of NMG, commented:

“As part of our sustainability and zero harm policy and commitment, Nouveau Monde strives to remain at the forefront of our industry. As one of the first, we will achieve a Net-Zero carbon footprint. While most companies are working overtime to review and reshape their business models to meet Net-Zero targets by 2050, we are set to achieve this two decades earlier. Nouveau Monde has an advantage because we have incorporated these principles into the design of our operations, the technological development of the company’s proprietary processes, and our choice of equipment. This final step, from carbon neutrality to Net Zero, will enable us to deliver on our environmental stewardship promise to our employees, communities, business partners, customers, shareholders, and governments.”

From Zero to Net Zero

NMG’s commitments aim fundamentally at reducing the Company’s embedded emissions as quickly as possible and internalizing the costs for each past, present, and future tonne of CO₂ emitted into the atmosphere. NMG has mapped its climate strategy around transparent reporting, reduction of its climate impact, transition to Net Zero, research and development for low-carbon materials and activities, as well as industry leadership. NMG’s targets are based on, but not limited to, all Scope 1, Scope 2, and some Scope 3 emissions, including business travel, direct emissions associated with the facilities construction, deforestation related to the Company’s direct operations, and the transportation of goods between sites.

In light of the progressive development and commissioning of its Phase-1 and Phase-2 operations, NMG projects that its greenhouse gas (“GHG”) emissions will increase over the next five years before reaching operational stabilization. Reduction and mitigation measures are already in place for Phase-1 operations and are planned for Phase-2 in addition to exploratory initiatives that show reduction potential.

NMG’S projected emissions curve with the deployment of its operations

Irrespective of its growth and the commissioning of new facilities, NMG is committed to reducing and controlling its emissions while increasing its effectiveness and efficiency. The Company’s Climate Action Plan aims to transition to a Net-Zero target and reduce the use of and financial risk associated with emissions offsets through source reduction strategies and the development of compensation projects.

By 2030, NMG plans to offset its carbon exclusively through verified carbon sequestration credits, the recommended model to limit global warming. NMG is committed to using a scientific approach targeting nature-based credits that increase global carbon sinks and reservoirs. The Company will also investigate technological opportunities to sequester carbon at its facilities or through partnerships.

As NMG aspires to create opportunities and shared value in its communities, it will incorporate credits from local projects in its compensation strategy. The Company also recognizes that the climate crisis affects the entire planet and that sequestration initiatives have a global impact. As it operates in an international market, NMG believes it is its corporate responsibility to support developing countries by investing in local climate solutions.

Profile of NMG’s offsetting strategy by credit type, impact investment and source

Eric Desaulniers, Founder, President, and CEO of NMG, added:

“We are taking swift action to become a change agent and a leader in providing the market with high-quality products with a carbon-neutral footprint while meeting our customers’ needs. We have incredible opportunities on the road to becoming Net-Zero. By proactively managing the carbon footprint of our operations and products, designing infrastructure with carbon sequestration potential, developing our offsets portfolio, and making long-term efforts within our industry, I am confident that we will further differentiate ourselves in the market.”

NMG’s integrated carbon profile

2021 Carbon Footprint

In 2021, NMG reported GHG emissions of 1,546 tonnes of CO₂ equivalent in connection with carrying out its operations at its Phase-1 plants and corporate offices. This calculation entails scope 1, scope 2 and a portion of scope 3 on which the Company has financial control, namely construction at its sites, business travel, and transport between sites.

The Company has purchased verified carbon credits to offset this balance. Supporting the transition to renewable energy, the credits are associated with constructing and operating a greenfield 20 MW solar photovoltaic power plant in Madagascar. Electricity in this developing country is currently heavily reliant on imported fossil fuels. Representing the island’s first large-scale solar photovoltaic power plant, the project will substitute grid electricity by clean energy, leading to considerable reductions in GHG emissions.