Australian battery anode and graphene additives provider Talga Resources Ltd (ASX:TLG) has executed an MoU with a subsidiary of global trading giant Mitsui to work together on the development of anode material for lithium-ion batteries in Europe.
Mitsui & Co. Europe Plc and Talga will now look to jointly establish a European supply of sustainable, low-CO2 emission anode materials for lithium-ion batteries utilising its 100% owned mineral and technology assets in northern Sweden.
The development plan includes construction of a scalable lithium-ion battery anode production facility and integrated graphite mining operations in northern Sweden, with initial production capacity of 19,000 tonnes coated anode per annum, known as the Vittangi Anode Project.
Talga Managing Director, Mark Thompson, said the signing of the MoU follows the completion of a Pre-Feasibility Study last year outlining the strong economics of the Vittangi Anode Project, and a period of undertaken due diligence.
The MoU outlines the intention to negotiate and enter into definitive agreements to form a joint venture with respect to the financing, construction and operation of the Vittangi Anode Project subject to a series of technical and commercial evaluation stages.
We are very pleased to enter into this agreement with Mitsui to explore Talga’s value proposition together,” Mr Thompson said.
“Talga sees strong synergies with Mitsui in our goal to build a European supply chain of anode materials for lithium-ion batteries and we look forward to working closely with them as we drive the Vittangi Anode Project in Sweden towards production.”
Mr Thompson said Europe is undergoing unprecedented growth in the demand for domestic, sustainable and cost- effective battery production, driven by the move to renewable energy storage and electric vehicles.
“This is creating new demand for sustainable and locally sourced battery anode materials as cell manufacturers and automotive OEMs look to secure more stable raw material supply chains and strive to minimise their carbon footprints.”