The Talga Group Ltd (ASX: TLG) share price is in the green after the company released news of its Vittangi Graphite Project.
Talga declared it has begun resource depth extension drilling at the Swedish project. Additionally, the company has received expressions of interest exceeding its targeted 2025 anode production capacity by 14 times. Talga expects this demand to exceed 50 times its production capacity by 2030.
Right now, the Talga share price is $1.32, 2.72% higher than its previous close.
Let's take a closer look at today's news from the technology minerals company.
Image source: Getty Images
New drilling program and increasing demand
The Talga share price is moving upwards today while its drilling program is going lower.
According to Talga, its Vittangi Project is Europe's largest graphite resource.
The depth extension drilling will explore underneath 3 existing resources to test the project's estimated mineral resource.
The project's JORC exploration target estimate was expanded to between 170 million and 200 million tonne at 20% to 30% graphite last month.
The results of the drilling will likely include information regarding potential underground mining operations and future expansion programs.
Talga expects the drilling to finish in October and internal studies using the assay results to begin in the final quarter of 2021.
Additionally, Talga has submitted exploitation concession applications for the project's Niska deposit to government authorities. It hopes to receive governmental approval and commence developing the site in line with the Niska Scoping Study.
The deposit's scoping study found that Talga could become the largest lithium-ion battery anode producer outside China by 2025. That could translate well for the Talga share price.
Talga will submit Niska's environmental permit once Nunasvaara South received its environmental permit. That's expected to be before mid-2022.
The company is working with 11 automotive companies and the majority of battery manufacturers in Europe under advancing qualification and procurement processes.
Commentary from management
Talga managing director Mark Thompson commented on the news driving the company's share price higher today:
With very strong commercial interest in our range of green graphite battery anodes, and progression towards production outlined in the Vittangi Anode Project DFS, Talga is in a strong position to be a key player in the European battery supply chain. However, it is also clear that expansion is a necessary step. Vittangi is Europe's largest, highest grade graphite resource and a world leader in low emission battery anode production for electric vehicles. We want to see as much of that graphite in electric vehicles as possible, helping to decarbonise the global economy.
Talga share price snapshot
The Talga share price has fallen from grace lately.
It is currently 27% lower than it was at the start of 2021. However, it has gained 122% since this time last year.
