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Talga’s (ASX:TLG) Vittangi passes European Investment Bank’s preliminary screening for funding

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ASX:TLG      MCAP $186.9M
23 November 2022 10:47 (AEDT)

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Talga Group (TLG) has announced its Vittangi anode project has passed the European Investment Bank’s (EIB) preliminary screening for debt financing.

This move reportedly follows “substantial” due diligence, including site visits, and has led the EIB to advance the Sweden-based project to ‘Under Appraisal’ ahead of a decision.

The EIB is the European Union’s long-term lending institution and makes financing available for projects which align with the EU’s policy goals.

The bank has previously backed projects in Sweden including a €350 million (A$542.7 million) for Northvolt’s Swedish gigafactory in Skellefteå.

If approved, EIB will make a financing commitment of up to €300 million towards the Vittangi project, pending final due diligence, credit approvals and agreements.

Talga’s Managing Director Mark Thompson said the progress is both a key milestone in the company’s development of its Vittangi anode project, and validation of the project’s role in Europe’s green transition.

Talga plans to use only renewable electricity to extract graphite — an EU defined critical material — from the Vittangi anode project, and refine it into coated anode for lithium-ion batteries.

The first stage of the project will produce 19,500 tonnes of anode per annum for 24 years from the integrated mine-to-anode operation.

Based entirely within the EU, the Vittangi anode project is expected to be a long-term and sustainable source of coated anode for the European electric vehicle industry, underpinned by Europe’s largest natural graphite resource.

Talga will continue advancing discussions with the EIB, other potential financiers and equity partners to build what will be Europe’s “first and most sustainable” lithium-ion battery anode supply for electric vehicles.

TLG shares were up 8.46 per cent to trade at $1.48 at 12:47 pm AEDT.

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