Talga Group Ltd (ASX:TLG) has entered into a non-binding Letter of Intent with French EV battery manufacturer Verkor SA to supply Talga’s flagship graphite anode product, Talnode-C, from its 100% owned Vittangi project in Sweden (LOI).
Talga is allocating its planned anode production across offtake supply agreements in support of the Ccompany’s project financing strategy, focusing on European customers.
The LOI, which follows successful Talnode-C qualification testwork to date, formalises commercial discussions underway between the parties and sets out non-binding terms for Talga to supply Verkor with Talnodec-C for electric vehicle applications over a four to eight-year period. The parties will work towards executing a binding term sheet in Q1 2023 alongside advancing product qualification programmes.
Verkor is backed by multiple prominent partners including Renault Group, EQT Ventures, Demeter FMET and Sibanye-Stillwater. Verkor’s goal is to open its first Li-ion battery Gigafactory in 2024 in Dunkirk, France, with a 16 GWh/annum capacity, followed by long-term expansion to 50 GWh/annum by 2030.
Talga is building Europe’s first battery anode plant in Luleå, Sweden. The initial operation, fed from the Nunasvaara South graphite mine, will produce 19,500tpa (~16 GWh/annum) of Talnode-C for the fast- growing Li-ion battery market.
Talnode-C is Talga’s flagship battery anode product with an ultra-low emissions profile for greener lithium-ion batteries.