Talga Group Ltd (ASX: TLG) has announced that the European Investment Bank board has approved €150M senior debt funding to underpin the company’s Vittangi Anode Project in Sweden.
The project will use 100% renewable electricity to produce an initial 19,500tpa of green anode for lithium-ion batteries from an integrated mine and anode refinery operation in northern Sweden.
The project is expected to create hundreds of jobs locally, contribute to Sweden’s efforts to transition to a clean energy economy and help reduce Europe’s reliance on imported battery materials for electric vehicles (EVs).
Talga is targeting project debt gearing of up to 60% and the EIB’s financing, subject to final negotiations, will form part of the debt financing package being finalized with multiple leading export credit agencies, commercial banks, and international financial institutions.
Following this approval, loan documentation is being agreed between the EIB and Talga, including customary terms and conditions for a financing facility of this nature. As the lending arm of the European Union, the EIB is one of the world’s largest providers of climate finance. The EIB’s approval follows extensive project due diligence, including market, technical, environmental, and social due diligence.
Talga managing director, Mark Thompson, commented: “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.”
To find out more, please visit www.talgagroup.com
