Talga share price surges 14% on Mercedes battery anode deal

The Talga Group Ltd (ASX: TLG) share price is accelerating today following a positive update from the technology minerals company.

At the time of writing, Talga shares are up 13.92% to $1.35 apiece.

Let’s take a look at what the company announced to the market.

Talga secures a deal for its Swedish lithium-ion battery anode

In today’s statement, Talga advised it has entered into a non-binding offtake term sheet with Automotive Cells Company SE (ACC).

ACC is co-owned by major automotive brands Mercedes-Benz, Stellantis and battery company Saft.

The deal will see Talga supply ACC with 60,000 tonnes of its flagship anode product Talnode-C over a five-year term.

Both parties will have until 30 November to complete due diligence and finalise a binding definitive agreement.

If successful, the deal is expected to include the supply of ramp-up volumes over 2023-25, prior to the 60,000-tonne offtake supply commencing in 2026.

The offtake term includes a floating price mechanism which will be signed off by both parties in the binding definitive agreement.

Talga is building an ultra-low emission battery anode production facility and integrated graphite mining operation in northern Sweden. It aims to use 100% renewable electricity to supply greener anode for lithium-ion batteries.

Talga share price summary

The Talga share price has struggled to reach its 2021 highs, falling 18% this year.

When looking at the past 12 months, its shares are down 14% for the period.

Based on today’s price, Talga commands a market capitalisation of approximately $419.34 million and has over 304 million shares outstanding.

The post Talga share price surges 14% on Mercedes battery anode deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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