MILAN, April 10 (Reuters) - Italy's Eni has agreed to acquire a minority stake in natural graphite producer Nouveau Monde Graphite for $70 million, giving it access to a critical material used in battery storage and other energy transition technologies.
The investment in the Canadian company will allow the Italian energy group to enter the critical minerals value chain at a time when European companies are seeking to reduce their dependence on materials sourced from China.
The transaction will also give Eni the option to negotiate exclusive supply agreements for graphite and other materials to support its gigafactory initiative to produce stationary lithium batteries in southern Italy.
The Italian group said the investment forms part of a $297 million capital increase at Nouveau Monde Graphite, alongside Canadian institutional investors Canada Growth Fund and Investissement Quebec, as well as a public equity raise.
Following completion of the transaction, Eni is expected to hold about 11.5% of Nouveau Monde Graphite's share capital and will gain a seat on the company's board.
Proceeds from the capital increase will support development of the Matawinie Mine, a high-quality natural graphite project, and the company's operations across the supply chain including refining at its Becancour Battery Material Plant.
The transaction is subject to approval by Nouveau Monde Graphite's shareholders at an annual meeting scheduled for the second half of May 2026.
Reporting by Francesca Landini; Editing by Jan Harvey
Source: Reuters