Shares in battery anode and advanced materials company Talga Group Ltd (ASX: TLG) were very much out of favour with investors today.
By the market's close, the Talga share price had tumbled 17.78% to $1.48. Investors responded negatively to an update provided by the company on the ASX this morning.
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What was weighing on the Talga share price?
Talga shares are copping a caning after the company revealed its formal letter of intent with Mitsui & Co. Europe and Swedish mining company Luossavaara-Kiirunavaraa Aktiebolag (LKAB) has now lapsed.
Talga was hoping to partner with LKAB and Mitsui on the development of its green anode project for use in producing lithium-ion batteries.
This would include construction of a scalable, 19,000-tonnes-per-annum anode production facility and integrated graphite mining operation in northern Sweden.
The project would be situated close to the Nunasvaara deposit, said to be the highest-grade graphite deposit in the world.
Is there still hope for the venture?
Whilst no further details about the venture's prospects have yet been provided, Talga did reveal it will continue advancing project development discussions with Mitsui under the existing Memorandum of Understanding.
Talga is using its 100%-owned mineral and technology assets in northern Sweden to establish a European supply of sustainable, low-CO2-emission anode materials.
The company said it will continue to pursue current and new financing and partnership opportunities emerging from the strong global demand outlook for green-battery anode.
Foolish takeaway
The Talga share price has had a rocky twelve months, having fallen by around 23% over the past year. The company's shares reached a 52-week low of $1.13 on 5 March this year.
Talga shares have been volatile in November, climbing by over 45% from $1.50 at the end of October to $2.20 by 9 November. Unfortunately, from then on, it has been largely downhill for Talga shares, which have since fallen by more than 30% to back below October's closing price.
