Battery manufacturer Talga Group announced that the European Investment Bank (EIB) board has approved €150 million (AUD 239 million) senior debt funding to underpin Talga’s Vittangi Anode Project in Sweden.
The ASX-listed company said the initiative will use 100 per cent renewable electricity to produce an initial 19,500tpa of green anode for lithium-ion batteries from an integrated mining and anode refinery operation in northern Sweden.
The project is also anticipated to provide hundreds of local jobs, assist Sweden’s transition to a sustainable energy economy, and reduce Europe’s dependency on imported battery materials for electric vehicles (EVs), as revealed in an ASX announcement.
Talga Managing Director Mark Thompson expressed his delight to have the support of the European Investment Bank as the company moves to the execution phase of the Vittangi Anode Project.
He added, “The EIB approval represents a key milestone for Talga, cornerstoning our debt financing package and affirming the underlying strength of our business and capabilities to produce world-class critical battery materials in Europe.”
To date, Talga said it is aiming for project debt gearing of up to 60 per cent, and the EIB’s funding will be part of the debt financing package being concluded with multiple prominent export credit agencies, commercial banks, and international financial institutions, subject to final discussions.
Following this approval, the EIB and Talga will negotiate loan documentation, which will include standard terms and conditions for a financing facility of this type.
The European Commission published its proposal for a Net-Zero Industry Act and a vital Raw Materials Act in March 2023, which set important objectives for the extraction of vital raw materials, such as natural graphite, and the manufacturing of strategic technologies in the EU, such as battery anode materials.
Moving forward, Talga said it is in a good position to contribute for many years to the net-zero transition of the EU’s automotive industry as a producer of materials for EV batteries with low emissions.
