Name of the Project
Vittangi battery anode project.

Location
Northern Sweden.

Project Owner/s
Battery anode and advanced materials company Talga Group.

Project Description
A detailed feasibility study (DFS) has confirmed the Vittangi project’s potential to supply globally competitive green graphite anode, suitable for multiple applications, including Tier 1 automotive lithium-ion batteries.

The DFS envisages a vertically integrated mine-to-anode operation producing 19 500 t/y battery anode Talnode-C from 100 000 t/y of Vittangi graphite ore over a 24-year mine life.

A scoping study was also completed during the DFS to evaluate the potential addition of about 85 000 t/y Talnode-C production from the adjacent Niska resources. This study identified significant commercial synergies to unify deposit development and production plans to maximise the potential of the project area. This will be subject to separate studies following further discussions with customers and development partners.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 30%, with a payback of 2.5 years after the project is commissioned.

Capital Expenditure
$484-million, and a $44-million contingency.

Planned Start/End Date
Mining is planned to start in 2023, with commercial anode production expected in 2024.

Latest Developments
Talga is considering project funding packages and possible strategic partnerships.

The company has received a letter of interest from the Nordic Investment Bank, which is exploring the possibility of providing financing for the project.

In addition, a letter of support has also been received from Swiss Export Risk Insurance (SERV) for technology partner ABB’s delivery of production and process control solutions to Vittangi.

These solutions form a significant portion of the total project scope and capital expenditure. Typically, interest rates charged by lenders on debt guaranteed by export credit agencies, such as SERV, are lower than commercial rates, as repayment of the debt is guaranteed.

In addition, Talga has also received a second letter of support from a leading European bank to provide financing for the project.

In parallel, the company is continuing to pursue binding commercial agreements and finance commitments through its partnership strategy, noting that discussions with potential strategic partners are ongoing, and include large automotive original equipment manufacturers and global participants across the lithium-ion battery supply chain.

The company is progressing towards commercial production at its flagship active anode material plant, having recently opened the first lithium-ion battery anode plant in Europe, and reaching a milestone in the permitting process for the 19 500 t/y operation.

Key Contracts, Suppliers and Consultants
Worley (lead consultant – DFS); and ABB (delivery of production and process control solutions).

Contact Details for Project Information
Talga Group, tel +61 8 9481 6667 or email info@talgagroup.com.