Shares in Talga Group Ltd (ASX: TLG) are shooting up this morning after the technology minerals company announced it has teamed up with Norwegian clean battery solutions business, FREYR.
In opening trade this morning, the Talga share price is up 6% trading at $1.495.
Talga partners up
In today’s statement, Talga advised it has signed a Memorandum of Understanding (MOU) for the supply of battery anode materials to FREYR.
Both companies are seeking to develop a local Nordic supply chain to produce clean, low-cost batteries.
Under the MOU, a framework will be established to help accelerate FREYR’s battery cell production under development in Norway. This will see a large-scale commercial supply of Talga’s Talnode range of anode materials to FREYR’s battery production facilities.
Both companies stated they were open to discussing binding long-term agreements such as licencing Talga’s anode technologies, or joint ventures.
In addition, a study will be assessed into looking at re-locating Talga operations within FREYR’s planned operations. It is thought that working side-by-side could potentially benefit battery manufacturing at an industrial level.
The non-binding MOU is valid for a period of 2-years, allowing enough time for a formal agreement to arise.
Management commentary
Talga managing director, Mark Thompson welcomed the MOU, saying:
We are very pleased to be working with FREYR to explore the use of our world-leading graphite and silicon anode materials and technology in their sustainable, high-performance battery cells. Additionally, we are pleased to discuss potential synergies towards strengthening our respective strategic positions in the global electric vehicle battery supply chain.
FREYR CEO, Tom Einar Jensen went on to add:
Developing a local supply of battery materials made with renewable energy under strong ethical and governance frameworks is a key element of FREYR’s strategy. By combining next-generation cell design and production technology with Norway’s low-cost renewable energy, and by unlocking sustainable localized supply chains enabled by companies such as Talga, FREYR is moving closer to realizing our ambition of producing large volumes of low-cost battery cells with one of the lowest carbon contents in the world.
About the Talga share price
Over the past 12 months, Talga shares trekked higher to register a gain of more than 200% for investors. However, the share price increase came predominately from the back end of last year.
In 2021, the Talga share price has moved sideways in 2021, down almost 13% year-to-date.
Talga presides a market capitalisation of roughly $427 million, with around 303 million shares on issue.
The post Why the Talga (ASX:TLG) share price is up 6% today appeared first on The Motley Fool Australia.
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