MILAN - 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)