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- Talga Group (TLG) completes the definitive feasibility study for its Vittangi Anode Project in Sweden
- The integrated mine-to-anode operation will produce 19,500 tonnes per annum of the company’s green graphite anode product ‘Talnode’
- The study shows the project will require US$484 million (A$645.4 million) to get off the ground, a sum that could be repaid in 2.5 years
- Over its 24-year operating life, Vittangi is tipped to generate US$4.08 billion (A$5.44 billion) in earnings
- Talga has engaged with potential development partners and is aiming to commence mine planning in 2023, and begin commercial production in 2024
- Shares closed at $1.33 on June 30, 2021
Talga Group (TLG) has completed the definitive feasibility study (DFS) for its Vittangi Anode Project in Sweden, a key milestone in developing the project to supply the growing lithium-ion battery industry.
The integrated mine-to-anode operation will produce 19,500 tonnes per annum of the company’s green graphite anode product ‘Talnode’ which is fit for use in Tier 1 automotive lithium-ion batteries.
Meeting the refined specifications of automotive customers required the addition of extra processing infrastructure which bumped up the CAPEX requirements of the project, compared to the CAPEX calculation of the pre-feasibility study.
Another point of difference in the DFS was the inclusion of additional infrastructure to grow the adjacent Niska resources. As such, the study found the project will require US$484 million (A$645.4 million) to get off the ground, a sum that could be repaid in 2.5 years.
Over a 24-year operating life, Vittangi is tipped to generate US$5.35 billion (A$7.14 billion) in revenue and US$4.08 billion (A$5.44 billion) in earnings before interest, tax, depreciation and amortization.
Talga Managing Director Mark Thompson said while the study demonstrated the project’s robust economics, the company was poised to explore expansion opportunities.
“Talga’s European-based natural green-graphite anode operation is well timed to meet the unprecedented increased battery demand driven by the global megatrend towards electrification and decarbonisation. We are confident that this initial stage of operation will be a stepping stone to Talga’s larger role in the global battery and EV supply chain.”
Next steps
Talga recently extended a letter of intent with state-owned mining giant Luossavaara- Kiirunavaraa Aktiebolag and global trading and investment company Mitsui & Co. Europe under which the parties have the exclusive rights to form a joint venture.
The parties now have until the end of November 2021 to enter binding agreements for the co-development of the Vittangi anode processing facility.
Talga is aiming to commence mine planning in 2023 and begin commercial production in 2024.
Shares closed at $1.33 on June 30, 2021.
