Nouveau Monde signs LOI with Shinzoom to market Li-ion anode material in North America
25 July 2017
Canada-based Nouveau Monde Graphite Inc. (NMG) has signed a non-binding letter of intent with China-based Hunan Zhongke Shinzoom Co. Ltd. (Shinzoom), a lithium-ion battery anode producer and developer. The purpose of the proposed collaboration is to participate actively in the growing North American Li-Ion battery anode material market.
The two companies seek to form a new joint venture which will be owned 51% by Shinzoom and 49% by Nouveau Monde. The JV will exclusively market Shinzoom’s anode materials to lithium battery manufacturers in North America.
Subject to Shinzoom’s investment policy and criteria, if the marketing and distribution results from the JV are satisfactory to both Shinzoom and Nouveau Monde in the first 18 months, the main parties will evaluate the feasibility of manufacturing Shinzoom’s anode material products (natural graphite, artificial graphite and composite graphite) in the Province of Québec.
Processing of anode material products in Québec would be developed through a new JV owned 51% by Nouveau Monde and 49% by SHINZOOM. The non-binding LOI is conditional to various conditions including a mutual satisfactory due diligence and the execution of the definitive agreements such as distribution agreement and shareholder agreement no later than 1 October 2017. Completion of the transaction is subject to a number of conditions. There can be no assurance that the transaction will be completed as proposed or at all.
Hunan Zhongke Shinzoom Co., Ltd. is a hi-tech enterprise specializing in the R&D and production of LiB anode materials in China. Shinzoom is one of the anode material suppliers for E-buses used in Beijing Olympic 2008, Shanghai World Expo 2010 and Shenzhen Universiade 2011 held in China.