Battery materials company Talga Group Ltd announced that the European Investment Bank (EIB) board had authorised €150 million in senior loan funding to support Talga’s Vittangi Anode Project in Sweden.
The Vittangi Anode Project in northern Sweden will use 100% renewable energy to create an initial 19,500tpa of green anode for lithium-ion batteries from an integrated mining and anode refinery operation. The Project is anticipated to provide hundreds of local jobs, assist Sweden’s transition to a clean energy economy, and lessen Europe’s dependency on imported battery materials for electric vehicles (EVs).
Talga is aiming for Project debt gearing of up to 60%, 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 documents, including standard terms and conditions for a financing facility of this type.
As the European Union‘s financing arm, Talga stated that the EIB is one of the world’s significant suppliers of climate funding. Following rigorous project due diligence, including market, technical, environmental, and social due diligence, the EIB approved the Vittangie Anode Project.
“We are very pleased to have the support of the European Investment Bank as we move to execution phase of the Vittangi Anode Project. 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,” Talga Managing Director Mark Thompson said.
The European Commission proposed a Net-Zero Industry Act and a Critical Raw Materials Act in March 2023, establishing significant objectives for EU production of strategic technologies, such as battery anode materials, and extracting critical raw materials, such as natural graphite.
Talga noted that it is ideally positioned to make a multi-decade contribution to the EU’s automotive industry’s net-zero transition as a producer of EV battery materials with low emissions.
Talga’s financial adviser was BurnVoir Corporate Finance, while its legal adviser was Allens.
