Talga Group (ASX:TLG) has executed a non-binding letter of intent (LOI) with German lithium-ion battery manufacturer EAS Batteries for graphite anode supply from its Vittangi Anode Project in Sweden.
The agreement establishes a pathway of product testing and qualification to progress toward a binding five-year supply agreement by July 2027, under which Talga would supply its Talnode anode products to EAS.
The LOI targets negotiating and agreeing on binding terms in April 2027.
According to Talga, the proposed supply agreement would include extension potential and feature a euro-denominated pricing mechanism. Both parties will also provide reasonable strategic support to each other’s project financing processes.
Chief executive Martin Phillips says Talga’s natural graphite battery anode products deliver “high power and high performance” with traceable supply chains.
“These attributes are increasingly underpinning procurement policies in Europe and elsewhere, especially those companies serving industries such as defence and aerospace,” Phillips says.
EAS Batteries General Manager Michael Deutmeyer adds that a ‘resilient’ European battery industry requires strong regional supply chains.
“Talga’s planned European anode production aligns well with our commitment to developing high-performance battery cells while strengthening local value creation and supply security,” Deutmeyer remarks.
Talga says the LOI represents a significant step in expanding Talga’s customer base in the high-performance battery segment and strengthening access to German and European Union funding programs.
It notes that the LOI is non-binding, except for confidentiality and governing law provisions, and does not create any obligation to purchase, supply product, or reserve capacity.
Talga Group produces high-power, sustainable battery anode and advanced graphitic materials.
Write to Paula Fabe at Mining.com.au
Images: Talga Group
