Northern Graphite will receive up to $6.2 million in repayable funding from the federal government to help extend the operational life of its Lac des Îles (LDI) graphite mine by up to a decade, it said on Tuesday.  

The mine, which is located around 150 kilometres northwest of Montreal, is North America’s only operating graphite mine. 

The funding, from Natural Resources Canada through Canada Economic Development for Quebec Regions, will cover 75 per cent of the qualifying expenses for a pit extension project that will extend the mine’s life and sustain its operations for an additional seven to 10 years, with first production from new zones expected in six to eight months.  

“LDI has been providing work to its local communities for over 35 years, and this pit extension means it can continue to do so for many years to come,” said Northern Graphite CEO Hugues Jacquemin in a written statement to CIM Magazine. 

“This is not just about a pit extension, which means that jobs will be preserved and new jobs that will also be created. It’s also about maintaining LDI as a cornerstone of our strategy as we look to continue exploration of Quebec’s rich graphite corridor and potentially bring our nearby Mousseau graphite property into production at a later date,” he said. 

The mine currently produces approximately 15,000 tonnes of graphite concentrate per year and was designed for a maximum annual throughput of 25,000 tonnes. Graphite, which is on Canada’s list of critical minerals, is a key material used in lithium-ion batteries, semiconductors, and solar and wind technologies, among other applications. 

In May this year, Northern Graphite first flagged that the mine could be placed under care and maintenance by the end of 2025 unless the company secured $10 million in expansion funding, due to the depletion of the existing open pit and stockpiles. 

Timothy Hodgson, Canada’s minister of energy and natural resources, said in a news release that the country’s investment in the project will “enable the production of these minerals and strengthen our economy and security while keeping good jobs in Quebec—a win-win for the province and Canada.” 

The LDI extension will preserve the current workforce of 55 employees and create additional roles, particularly in site preparation, with more permanent positions to be added in the pit, mill and maintenance as production ramps toward the 25,000-tonnes-per-year goal. 

“We are already North America’s only significant graphite miner, and we are working to become a fully integrated, global supplier of graphite battery anode material (BAM) by building secure and sustainable critical mineral supply chains close to emerging battery markets,” said Jacquemin.  

He said the company is planning a large facility in Baie-Comeau, Quebec, which will process graphite from the LDI mine for battery makers in both Canada and the United States. Currently, most BAM used in North America is imported from China. The facility is slated to begin construction in 2026, contingent upon securing the necessary funding.  

“We are also planning to build a BAM facility in France that will process graphite from our Okanjande mine in Namibia that we plan to restart in 2027,” he added. “Our large-scale Bissett Creek graphite project in Ontario, which can be brought into production within 12 to 14 months of a construction decision pending financing, will be able to supply either or both of our planned BAM facilities.”