The Talga Group Ltd (ASX: TLG) share price is accelerating today following a positive update from the technology minerals company.
At the time of writing, Talga shares are up 13.92% to $1.35 apiece.
Let's take a look at what the company announced to the market.
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Talga secures a deal for its Swedish lithium-ion battery anode
In today's statement, Talga advised it has entered into a non-binding offtake term sheet with Automotive Cells Company SE (ACC).
ACC is co-owned by major automotive brands Mercedes-Benz, Stellantis and battery company Saft.
The deal will see Talga supply ACC with 60,000 tonnes of its flagship anode product Talnode-C over a five-year term.
Both parties will have until 30 November to complete due diligence and finalise a binding definitive agreement.
If successful, the deal is expected to include the supply of ramp-up volumes over 2023-25, prior to the 60,000-tonne offtake supply commencing in 2026.
The offtake term includes a floating price mechanism which will be signed off by both parties in the binding definitive agreement.
Talga is building an ultra-low emission battery anode production facility and integrated graphite mining operation in northern Sweden. It aims to use 100% renewable electricity to supply greener anode for lithium-ion batteries.
Talga share price summary
The Talga share price has struggled to reach its 2021 highs, falling 18% this year.
When looking at the past 12 months, its shares are down 14% for the period.
Based on today's price, Talga commands a market capitalisation of approximately $419.34 million and has over 304 million shares outstanding.
