Talga Group (ASX:TLG) reports it has signed non-binding a Letter of Intent (LOI) with French electric vehicle (EV) battery manufacturer Verkor to supply its Talnode-C graphite anode product.
The company states the graphite used for Talnode-C is produced from Talga’s wholly owned Vittangi Project in Sweden. Talga is allocating its planned anode production across offtake supply agreements in support of its project financing strategy of focusing on European customers.
The LOI, which follows qualification testwork for Talnode-C, will formalise commercial discussions that are underway between Talga and Verkor to set out non-binding terms for the supply of the anode for application in EVs over a 4-8-year period.
Talga says it will work with Verkor towards executing a binding term sheet in Q1 alongside advancing product qualification programs. It also notes Verkor is backed by multiple ‘prominent’ partners including Renault Group, EQT Venture, Demeter FMET, and Sibanye-Stillwater.
Talga will work with Verkor towards executing a binding term sheet in Q1 alongside advancing product qualification programs
The company reports Verkor plans to also open its first lithium-ion battery factory in Dunkirk, France in 2024. This factory will initially have a capacity of 16 gigawatt hours (GWh) per annum and will be followed with a long-term expansion to 50GWh per annum by 2030.
Verkor is a French ‘low-carbon’ battery producer founded in 2020 focused on producing batteries for EVs.
Talga Group is a European battery and advanced materials supplier focused on graphite-based battery anode products for EVs, energy storage and consumer electronics. The company wholly-owns the Vittangi Graphite Project, located in Norrbotten County in Sweden.
The company is also building Europe’s first battery anode plant in Luleå, which will use graphite from the Nunasvaara South graphite mine located within Vittangi to produce 19,500 tonnes per annum of Talnode-C.
Images: Talga Group Ltd
