Talga, Mitsui and LKAB have signed a non-binding Letter of Intent (LOI), with the intent to jointly develop the Talga project to realisation, after delivery of a Detailed Feasibility Study in 2021.
Talga is the 100% owner of the Vittangi graphite project and proprietary technology for anode battery production. Permit applications for the graphite mine was filed in May 2020. Mitsui is one of the largest global trading and investment companies whose global headquarters are in Japan with subsidiaries globally, including Mitsui Europe.
The Talga project
Talga is establishing a European supply of sustainable, low-CO2 emission anode materials for lithium-ion batteries, utilising its 100% owned Swedish mineral assets and battery material technologies. Building on the company’s vertically integrated business strategy, the development plan includes construction of a scalable lithium-ion battery anode production facility and integrated graphite mining operations in northern Sweden, with initial production capacity of 19,000 tonnes coated anode per annum.
The Letter of Intent and formation of a possible Joint Venture
The Letter of Intent is a non-binding agreement between the parties. After completing the detailed feasibility study, expected March 2021, and due diligence LKAB, Talga and Mitsui intends to negotiate a business agreement including ownership and investments.
LKAB’s rationale for the interest in Talga
Growth within the industrial minerals market is a strategic activity to reduce dependence on the iron ore market which today accounts for around 90 percent of the external sales. There is also a clear sustainability-based rationale coupled with the growth ambition, to recycle and upgrade by-products and waste streams. Additionally, the growth will be accelerated through selected acquisitions and investments that offer synergies with LKAB’s market, operations and sustainability ambitions. Talga, with its proximity to LKAB’s existing mining operations in Northern Sweden, may offer synergies with resources, skills and infrastructure. There are also potential commercial synergies with sales and distribution, including the developments in the ReeMAP project that will produce both phosphorus and rare earth elements through recycling mine waste.
