Quebec's $2B Graphite Project to Power North American EV Supply Chain

BAIE-COMEAU, QC – April 29, 2026

By Kevin Lee

Metals Australia Ltd has unveiled a landmark plan for a high-purity graphite refinery in Quebec, a project poised to become a cornerstone of North America's burgeoning electric vehicle (EV) supply chain. A Preliminary Economic Assessment (PEA) released today projects a massive pre-tax Net Present Value of $2.05 billion USD for the facility, signaling strong investor confidence and a significant step toward mineral independence for the West.

The proposed refinery, to be located in the industrial port city of Baie-Comeau, is designed to transform 75,000 tonnes of flake graphite concentrate annually into 51,000 tonnes of high-purity, battery-grade anode material. With an impressive internal rate of return (IRR) of 25.6% over an initial 25-year lifespan, the project represents a strategic and economic windfall for Quebec and Canada.

A Strategic Play in the Global EV Race

This project arrives at a critical juncture for Western economies scrambling to secure domestic supply chains for critical minerals, particularly graphite, an essential component in lithium-ion battery anodes. Currently, China dominates over 80% of the global graphite market, a concentration that has raised alarms in capitals from Washington to Ottawa.

Policies like the U.S. Inflation Reduction Act (IRA) are actively incentivizing the shift away from foreign dependency, creating a protected and lucrative market for North American producers. Metals Australia's project is strategically aligned to capitalize on this shift. The refinery is a key component of Canada's own Critical Minerals Strategy, which is backed by $3.8 billion in federal funding and aims to establish five new graphite mines and five processing plants by 2040.

"At a time when the world increasingly needs stable, secure, long terms supplies of critical minerals and the energy solutions that can be created from them, we have unveiled a world class project that is aligned with that strategic need," commented Metals Australia CEO Paul Ferguson in a statement. "Our Battery Anode Material Refinery in Quebec is clearly one of compelling economic and strategic advantage for Canada, the province of Quebec and our stakeholders."

The project's alignment with national goals is further evidenced by the company's application to Canada's Critical Minerals Infrastructure Fund (CMIF) to support power and transport infrastructure, aiming to leverage public-private partnerships to accelerate development.

Baie-Comeau's Billion-Dollar Boost

For the regional economy of Baie-Comeau on Quebec's North Shore, the refinery promises a new era of industrial prosperity. The project is expected to create 227 full-time jobs, injecting an estimated $21.5 million USD in direct annual wages into the local community.

Baie-Comeau was not chosen by accident. The city offers a powerful combination of logistical and industrial advantages, including available industrial land, a pro-development business community, and, crucially, existing infrastructure. Its deep-water port provides year-round access to global shipping lanes, while a rail ferry connection offers a direct link to the North American rail network, creating a significant freight advantage for moving both raw materials and finished products.

This utilization of existing infrastructure minimizes the project's footprint and capital costs while maximizing its economic integration with the region. The influx of high-paying jobs and associated economic activity is anticipated to revitalize the local economy, providing a stable industrial anchor for decades to come.

The High-Grade Advantage

Underpinning the project's robust economics is the high quality of the resource itself. The refinery will be fed by concentrate from Metals Australia's Lac Carheil project, located near the mining hub of Fermont. The project boasts a mineral resource with an average graphite grade of 10.2% Total Graphitic Carbon (TGC)—a figure the company notes is 2.4 times higher than that of regional competitor Nouveau Monde Graphite, based on publicly available data.

In mining, grade is king. A higher-grade resource can translate directly to lower operating costs, reduced waste, and a smaller environmental footprint per tonne of finished product. This gives the Lac Carheil-Baie-Comeau combination a significant competitive edge in a market where efficiency and cost are paramount.

Furthermore, the company believes it is only scratching the surface. The current resource estimate is based on limited drilling, with nine additional high-potential graphite zones identified over a 33-kilometer strike length yet to be explored. This suggests a substantial opportunity for future expansion, potentially extending the project's life and production capacity well beyond the initial 25-year plan.

Navigating a Sustainable Path Forward

In today's mining landscape, economic viability must be matched by a firm commitment to environmental sustainability and community partnership. Metals Australia is advancing the project with a focus on modern best practices designed to minimize its environmental impact.

A key innovation is the plan to manage waste rock and tailings. The company has developed a process to create a dry, inert tailings product that can be co-disposed with waste rock. This forward-thinking approach eliminates the need for a conventional, large-scale tailings storage facility, or tailings dam, which is often a source of significant long-term environmental risk and community concern.

Engagement with local and Indigenous communities is also a core focus. The company has already submitted an Impact Exploration Assessment to Quebec's Ministry of Natural Resources and Forestry, a process that now requires broad consultation with all stakeholders under regulations updated in May 2024. This proactive engagement is crucial for securing the social license to operate.

With the overwhelmingly positive PEA results in hand, Metals Australia is fast-tracking the project, moving it directly to a Final Feasibility Study. This next phase will run in parallel with ongoing community and Indigenous engagement activities, setting the stage for a final investment decision on a project that could redefine Quebec's role in the global energy transition.