The Talga Group Ltd (ASX: TLG) share price has been storming higher on Thursday morning.
At the time of writing, the graphite producer's shares are up 9% to $1.50.
Why is the Talga share price storming higher?
Investors have been bidding the Talga share price higher today following the release of an update on drilling activities at its Vittangi Graphite Project in northern Sweden.
According to the release, the final results from its drilling activities have returned world-class grades, which management believes paves the way to upgrade Europe's largest natural graphite resource for Li-ion batteries. A revision of the Vittangi JORC mineral resource has now commenced.
What is Talga planning?
The release highlights that Talga is building a vertically integrated operation to supply green natural graphite anode products to Li-ion battery manufacturers and automotive OEM customers.
This is a great spot to be in, as by 2031 Europe is forecast to require 1 million tonnes anode per annum (tpa), whilst global demand is projected to reach >8.3 million tpa.
Furthermore, Talga already has relationships with many of the companies that will be making up this sizeable demand. Management notes that its anode products are being trialled by more than 40 customers whose capacity roadmaps underscore the enormity of demand, globally and in Europe.
Talga's Managing Director, Mark Thompson, was pleased with the results.
He said: "With the commissioning of our Electric Vehicle Anode plant (EVA) underway Talga is well advanced in its plans for vertically integrated anode production in Europe. The consistent high grades from recent drilling at Vittangi are outstanding, and our world-class Swedish natural graphite deposits clearly have room for significant further growth. We are pleased to commence upgrading the scale of resources to match fast growing global demand for cleaner, secure battery supply chains."
