Talga Group (ASX:TLG) has signed a non-binding letter of intent with Japanese trading company Hanwa (TYO:8078) covering a potential long-term offtake agreement and project-level investment in its Vittangi Anode Project in Sweden.
The companies intend to negotiate a binding agreement for Hanwa and its customers to purchase Talnode graphite anode products from Vittangi on preferential terms.
A separate investment agreement could see Hanwa or other Japanese investors provide project-level funding, with the amount and structure to be determined following due diligence.
The indicative timetable targets completion of due diligence and agreement on a term sheet during the third quarter of 2026. Definitive agreements are targeted for the fourth quarter.
Talga is aiming to make a final investment decision (FID) on Vittangi in early 2027.
The letter of intent is non-binding, except for provisions including confidentiality, governing law, and securities exchange disclosures. Talga says it has no immediate material financial impact, with binding obligations dependent on the execution of definitive agreements.
CEO Martin Phillips says the proposed partnership could support Talga’s development and financing plans.
“We look forward to advancing due diligence toward definitive agreements and our target FID in early 2027,” he says.
Hanwa generated US$17.2 billion ($24.57 billion) in sales during 2026 and has a procurement agreement with Honda Motor (TYO:7267) covering lithium-ion battery materials.
Talga’s wholly owned Vittangi Anode Project holds strategic project status under the EU’s Critical Raw Materials Act and Net-Zero Industry Act.
Conditional non-dilutive funding mechanisms for the project include a €150 million ($244.48 million) debt facility approved by the European Investment Bank board and a €70 million EU Innovation Fund grant.
Write to France Pinzon at Mining.com.au
Images: Hanwa Group
