Battery anode and advanced materials company Talga Group Ltd (ASX: TLG) ('Talga' or 'the Company') is pleased to report its activities for the quarter ending 30 September 2021.
PRODUCT AND TECHNOLOGY DEVELOPMENT
Hitachi Life Cycle Assessment defines Talga's world-leading green anode credentials
Swedish Electric Vehicle Anode ('EVA') plant construction update
Talnode and Talphene products advance with customers
COMMERCIAL AND PROJECT DEVELOPMENT
ABB MoU expanded to include mine electrification for expansions of Talga's Swedish battery anode operation
Trial Mine at Vittangi Graphite Project underway
Mining applications submitted for Niska development under
Talga's expansion plans
Drilling program commenced at Vittangi as part of Talga's graphite resource growth initiatives
SkyTEM results from ongoing exploration activities received subsequent to the quarter CORPORATE AND FINANCE
Appointment of global CFO and Chair of Swedish Board
Discussions with potential Vittangi financing and JV partners on track
Talga joins RECHARGE, Europe's leading industry body of the advanced rechargeable and lithium-ion battery value chain
Cash balance of A$46.0 million as at 30 September 2021
Commenting on the developments over the September 2021 quarter, Talga Managing Director Mark Thompson said: 'During the quarter we made strides in achieving key long term strategic goals, focusing on financing our first commercial anode project and toward future expansions to become the largest anode producer outside of Asia. We have also been successful in our exploration and trial mining of what is already Europe's largest natural graphite resource, towards securing the critical raw material needed to produce the world's greenest anode for more sustainable batteries.'
Life Cycle Assessment Highlights Talga's World-Leading Green Battery Anode
An independent Life Cycle Assessment (LCA) completed by Hitachi ABB Power Grids showed Talga's flagship battery anode product, Talnode-C, is the world's greenest graphite anode, producing 96% less greenhouse gas than incumbent EV battery anode produced in China (ASX:TLG 12 August 2021). This is equivalent to a reduction of 2,900,000 tonnes of CO2 per million EVs produced1. The global warming potential of the production of 1 kilogram of Talnode-C is 1.477 kilogram CO2 equivalent, driven by Talga's high-yield graphite ore, innovative anode process and use of renewable energy. Of this total, only 14% is directly related to Talga's processes (Scope 1 emissions), while the remaining 86% of emissions are related to external suppliers (Scope 2 and 3 emissions). Talga foresees significant opportunities to further reduce the environmental impact of Talnode-C through strategic sustainable procurement. Talga's northern Swedish location has proximity to customers and availability of low-carbon transport options, such as electric trains, providing further mine-to-customer environmental advantages past the factory gate. The LCA accords to ISO 14040 - 14044 standards and the German Association of Automotive Industry principles for data collection.
EVA Plant Construction Update
Construction of Talga's Electric Vehicle Anode ('EVA') qualification plant in northern Sweden continues with key anode production equipment in transit to site or nearing completion by European and Japanese manufacturers. Global container handling delays have impacted the delivery date of the EVA's kiln, pushing back delivery by 2 to 4 weeks. Shipping is projected to continue to experience significant disruption, however the Company expects to still meet its original timeline to start EVA commissioning in Q4 2021 with full commissioning completed in Q1 2022. The fully funded and permitted qualification plant is being constructed within the facilities of metals research institute Swerim in Lulea, Sweden, near Talga's proposed commercial anode refinery site and adjacent to the existing Port/Steel Mill complex. The EVA plant, which will be the first coated anode production facility in Europe, will utilise Talga's proprietary production process and coating technology to produce Talnode-C for automotive customer qualification requirements
Talnode and Talphene Product Development
The development of Talga's main range of anode and graphene products continues as planned from the Company's existing facilities in Germany, UK and Japan. Talnode programs with customers continue to expand in full cell testing and pilot programs for automotive applications, including successful blends of Talnode-C and synthetic graphite to customer anode requirements.
ABB and Talga Expand Agreement
Following successful completion of the Vittangi Anode Project DFS (ASX:TLG 1 July 2021), Talga and global technology leader ABB has extended and expanded its Memorandum of Understanding ('MoU'). Talga aims to electrify its underground mining operations when it reaches the expansion phase of its Swedish battery anode operations. This electrification strategy will be explored by ABB and Talga under the expanded MoU, focusing on the ABB Ability eMine portfolio of solutions. Under the MoU, ABB will also extend its industrial automation and electrification expertise to include next-level production and process control solutions for Talga's initial operation. In addition, ABB will work with Talga on front-end engineering and design ('FEED') for the development and construction of commercial 100,000tpa graphite concentrator operations at Vittangi, a 19,500tpa anode production plant at Lulea and earlier ramp-up stages/production qualification modules. The commercial FEED stages are due for completion in June 2022, with the intent to execute binding agreements with ABB for subsequent construction and operations.
Trial Mine Underway
During the quarter, Talga commenced trial mining at its Vittangi Graphite Project ('Vittangi') to provide feed ore for expanded testing of the Company's flagship Li-ion battery anode product Talnode-C. This coated high-performance anode product has been developed over several years by Talga to provide a green European source of anode for battery manufacturers and automotive OEMs. The trial mine, operating under a three-year permit issued by the Environmental Review Commission within the Norrbotten County Administration Board, covers the extraction of 25,000 tonnes graphite ore from the Niska South deposit. In this first phase of the campaign which is nearing completion, approximately 2,500 tonnes of graphite ore is being extracted before the site is rehabilitated for the northern hemisphere winter. Rehabilitation will implement the successful measures previously used in the Company's 2015-2016 trial mining campaign at its nearby Nunasvaara South deposit. The balance of the permitted 25,000 tonnes graphite ore is planned to be extracted in 2022.
SkyTEM Surveys Define New Targets at Vittangi and Aitik East
Subsequent to the quarter, Talga completed high resolution airborne 'SkyTEM' geophysical surveys at Vittangi and the Aitik East Copper Project ('Aitik East'). Results show the greater Vittangi graphitebearing units are more continuous than previously recognised and identified new zones for follow up drilling across both projects. At Vittangi the SkyTEM identified a strong 600m long conductor located adjacent to the planned DFS concentrator site and southeast of the existing Nunasvaara North resource. Historic rock samples of this zone returned up to 36% graphite (ASX:TLG 15 November 2012) and results from drilling the eastern 400m of this zone are expected in December 2021. A weak, but discrete, conductive anomaly, modelled as approximately 200m long and starting 50m below surface, was identified at Talga's Aitik East Project. The conductor will undergo further modelling and interpretation for follow-up exploration activities including drilling, the timing of which will be determined in line with Talga's corporate strategies for its non-graphite battery metal projects in Sweden
Appointment of Global Chief Financial Officer and Chair of Swedish Board of Directors
During the quarter, Talga appointed Perth-based senior executive Melissa Roberts as the Group's Chief Financial Officer. Ms Roberts has over 20 years' experience in the global resources industry across corporate and commercial roles, most recently with global mineral producer Iluka Resources. Melissa joined Iluka in 2009 and held a range of senior roles within the business in Commercial, Investor Relations, Business Development and Information Technology. In addition, the Company appointed Per-Erik Lindvall as Chair of its Swedish Board of Directors. Mr Lindvall is a well-known business leader in northern Sweden with a longstanding background in the Swedish mining industry including as former Vice President of LKAB.
Project Finance
Discussions with potential Vittangi Anode Project financing partners, including under the tri-partite joint venture LOI first announced 2 November 2020 and later extended (ASX:TLG 28 June 2021), continued as planned during the period. Talga will provide an update in accordance with its disclosure obligations in due course
Talga joins RECHARGE
Talga has been accepted as a member of RECHARGE, a leading industry body advocating for the sustainable development of an innovative and competitive rechargeable and lithium-ion battery value chain in Europe. In addition to RECHARGE, Talga is already an active participant in a range of industry bodies covering the lithium-ion battery industry space, graphene and other advanced materials. This includes the European Battery Alliance (which aims to ensure that all Europeans benefit from safer traffic, cleaner vehicles and more sustainable technological solutions), the Batteries European Partnership (an association driving research towards a more competitive, sustainable and circular European battery value-chain under Horizon Europe) and the Graphene Flagship (which aims to secure a major role for Europe in the ongoing technological revolution and help commercialise graphene).
Contact:
Mark Thompson
Tel: + 61 (08) 9481 6667
TALGA GROUP LTD 
