Talga signs offtake deal with ACC

27th September 2022 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Australian listed Talga has signed a non-binding offtake agreement with European battery maker Automotive Cells Company SE (ACC) to supply its flagship anode product, Talnode®-C, from the Vittangi anode project in Sweden.

Under the term sheet, which follows successful qualification test work completed to date, Talga will supply ACC with 60 000 t of Talnode®-C over a five-year term. The definitive agreement is expected to include supply of ramp up volumes over 2023 to 2025, prior to the 60 000 t offtake supply starting in 2026.

The two parties will use all reasonable efforts to complete due diligence and finalise a binding definitive agreement by the end of November 2022.

The offtake term includes a floating price mechanism with a reference price to be agreed by the parties in the binding definitive agreement, which will be subject to standard conditions precedent for an offtake agreement of this nature.

ACC is co-owned by automotive brands Mercedes-Benz and Stellantis, which include the brands Alfa Romeo, Chrysler, Citroe╠łn, Fiat, Jeep, Peugeot and Maserati, and battery company Saft, which is a subsidiary of energy giant TotalEnergies.

ACC is currently establishing its first lithium-ion battery Gigafactory in France, with further Gigafactories planned in Germany and Italy to ramp up total production capacity to 120 GWh/y in 2030.