Italian energy giant Eni will acquire a minority stake in natural graphite producer Nouveau Monde Graphite for USD 70 million. The strategic acquisition will give the business 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, as European companies seek to reduce their dependence on China-sourced materials.
“The capital increase is aimed at supporting the development of the Matawinie Mine of high-quality natural graphite, a key feedstock for the battery sector, as well as other high-margin industrial segments. The Matawinie Mine forms the asset base for a vertically integrated project of natural graphite extraction and its refining at NMG’s Becancour Battery Material Plant,” ENI said.
“The investment in NMG is consistent with Eni’s strategy to diversify its supply chains. In particular, it enables Eni to enter the critical minerals value chain through a partnership with a leading company in the sector, while leveraging its distinctive technological know-how,” it added.
According to Eni, the transaction will also give it 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 investment forms part of a USD 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 will hold about 11.5% of Nouveau Monde Graphite’s share capital, in addition to gaining a seat on the company’s board.
The acquisition also serves one of the critical bedrocks for Eni’s goal to become a player in battery cell manufacturing for stationary energy storage systems. In September 2025, it started the development activities for a new lithium iron phosphate (LFP) battery cell factory through a joint venture (JV) called Eni Storage Systems.
Eni Storage Systems will construct a manufacturing hub at existing Eni facilities in Brindisi, southern Italy, with over 8GWh annual production capacity. The pre-construction work, which includes an initial engineering phase, along with the economic, financial and permitting assessments, is expected to be completed this year, after which the project will enter the execution stage.
Eni’s JV partner is FIB, a subsidiary of Italy’s Seri Industrial group, which owns several battery and materials companies. In October 2024, both ventures decided to cooperate in developing an industrial supply chain for LFP batteries, targeting the stationary battery energy storage system (BESS), along with the commercial and industrial (C&I) electric mobility sectors. The joint venture wants to capture more than a 10% share of the European stationary energy storage market.