Talga Group Ltd. announced it has entered into a non-binding Letter of Intent with Verkor SA to supply Talga's flagship graphite anode product, Talnode-C, from its 100% owned Vittangi project in Sweden. Talga is allocating its planned anode production across offtake supply agreements in support of the Company's project financing strategy, focusing on European customers. The LOI, which follows successful Talnode-C qualification testwork to date, formalises commercial discussions underway between the parties and sets out non-binding terms for Talga to supply Verkor with Talnode-C for electric vehicle applications over a 4- to 8-year period.

The parties will work towards executing a binding term sheet in First Quarter 2023 alongside advancing product qualification programs. Verkor is backed by multiple prominent partners including Renault Group, EQT Ventures, Demeter FMET and Sibanye-Stillwater. Verkor's goal is to open its first Li-ion battery Gigafactory in 2024 in Dunkirk, France, with a 16 GWh/annum capacity, followed by long-term expansion to 50 GWh/annum by 2030. Talga's mission to enable the world's most sustainable batteries aligns well with Verkor's mandate to accelerate the large-scale industrialisation of batteries in Europe.