LKAB and Mitsui extend Talga LOI for Swedish graphite anode project
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(Kitco News) - Battery anode and advanced materials company Talga Group (ASX:TLG) announced Monday that the Letter of Intent ("LOI") executed with LKAB and Mitsui has been extended by mutual agreement until 30 November 2021.
The LOI considers co-development of Talga's initial European green anode project for lithium-ion batteries. This includes construction of a scalable 19,000tpa Vittangi anode production facility and integrated graphite mining operation in northern Sweden with an additional 85,000tpa Niska project expansion opportunity.
According to a press-release, since entering the LOI, LKAB and Mitsui have been undertaking due diligence, including customer interactions, and advanced discussions on potential joint development. Terms of the potential joint venture are being positively progressed but remain to be agreed to and the parties will continue negotiations under the extended LOI, Talga added.
The LOI extension provides LKAB and Mitsui the non-exclusive right to negotiate and enter into a binding joint venture agreement with Talga by 30 November 2021, or as mutually agreed. All other terms of the LOI remain unchanged.
Commenting on the agreement, Talga Managing Director Mark Thompson said: "Talga is very pleased to progress JV partner discussions with LKAB and Mitsui for the development of our European anode supply chain to serve the lithium-ion battery market from our Swedish operations. We look forward to continue exploring potential synergies across operations, investment and global sales/distribution in our partnership negotiations."
Talga Group is building a European battery anode and graphene additives supply
chain, to offer advanced materials critical to its customers' innovation and the shift towards a more sustainable world. Vertical integration, including ownership of several high-grade Swedish graphite projects, provides security of supply and creates long-lasting value for stakeholders.