Special Report: Talga has upgraded graphite resources at its flagship Vittangi project in northern Sweden by 15 per cent and identified new exploration targets to be tested.
Vittangi now has a resource of 19.5 million tonnes grading 24 per cent graphite following the review of its four deposits to standarise parameters for increased accuracy in upcoming feasibility studies and enable better mine planning, permitting and reporting.
The new exploration targets along strike and at depth from current resources will also be tested by Talga Resources (ASX:TLG) to potentially increase resources.
“We are pleased to continue defining and growing these globally significant and strategically important European graphite deposits,” managing director Mark Thompson said.
He added that natural graphite appears on the European Commission’s recently updated list of critical raw materials necessary for the energy transition to a more sustainable society as it forms nearly half the volume of active materials in electric vehicle batteries.
Graphite is used for the anode, one of the three key parts of lithium-ion batteries. The others are the cathode and the electrolyte, which is typically lithium salt dissolved in an organic solvent.
“With projected anode demand set to reach 3.2 million tonnes by 2030, the potential of Talga’s Swedish integrated natural graphite anode production facility is significant for the European electric vehicle supply chain and the ‘green’ economy,” Thompson added.
Building an integrated graphite anode business
Talga recently developed 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.
It 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.
Approval has also been given for trial mining of up to 25,000 tonnes of graphite ore to be extracted from Vittangi.
This progress has also resulted in the company securing $10m in funding through a placement to scale up manufacturing of Talnode-C customer samples to satisfy larger automotive original equipment manufacturer (OEM) qualification processes underway.
Funds will also be used to progress the definitive feasibility study, which is expected to be completed in the first quarter of 2021.
Construction is expected to begin in 2022 with production of about 19,000 tonnes of commercial anode beginning in 2023.
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.