Swedish miner joins Talga’s graphite battery anode project
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Special Report: Talga now has a second major company joining its efforts to develop the Vittangi graphite battery anode project in northern Sweden.
Swedish state-owned mining and minerals group Luossavaara-Kiirunavaraa Aktiebolag (LKAB) has executed a non-binding letter of intent with Talga and existing partner Mitsui to establish a European supply of sustainable, low carbon emission anode materials for lithium-ion batteries.
Under the letter of intent, the parties have the non-exclusive right to negotiate and enter binding co-development agreements with Talga (ASX: TLG) by 30 June 2021 subject to the detailed feasibility study expected in March 2021 and due diligence.
Vittangi is close to LKAB’s existing mining operations in Northern Sweden and a range of potential synergies have been identified, including local resources, skills and infrastructure.
There may also be commercial synergies across sales and distribution, alongside Mitsui, and in LKAB sustainability innovations in recycling and by-product processing.
“We are very pleased that LKAB has decided to join with Talga and Mitsui at this stage, as we continue building partner relationships to develop the Vittangi Anode Project,” managing director Mark Thompson said.
“LKAB play a significant role in the Swedish economy and offer strong synergies, complementary to our joint partner Mitsui, in Talga’s mission to supply European and global battery markets with sustainable anode products.”
Talga is developing an integrated graphite anode facility capable of producing about 19,000 tonnes of commercial anode from 2023.
This follows its development of a fast-track pathway to commercial anode production by combining development of the anode facility into a single commercial stage without compromising the overall economic and financial parameters set out in the pre-feasibility study that could see construction begin in 2022.
Highlighting the demand, the company has already secured expressions of interest for its Talnode lithium-ion battery anode products exceeding 300 per cent of the planned annual capacity while Vittangi has been acknowledged as a “mineral deposit of national interest” by the Swedish Geological Survey.
Graphite anode demand is projected to reach 3.2 million tonnes by 2030.
Approval has also been given for trial mining of up to 25,000 tonnes of graphite ore to be extracted from Vittangi.
Vittangi recently had its resources upgraded by 15 per cent to 19.5 million tonnes grading 24 per cent graphite.
This article was developed in collaboration with Talga Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.