Talga signs graphite anode offtake term sheet with Japan's Dainen

Battery-materials developer Talga Group has signed a binding offtake term sheet with Japan's Dainen Materials for Talnode-C, its natural graphite anode material produced in Sweden.

In an Oct. 28 statement, the Australia-listed company said the agreement reserves up to 2,000 metric tons/year of Talnode-C production capacity for Dainen or its customers. The five-year term will begin when deliveries start, expected in late 2027, and includes extension rights. Final purchase volumes will be confirmed in a definitive Master Supply Agreement, which the companies intend to execute by March 2027.

Talga operates a 50 mt/year electric-vehicle anode plant in Luleå, Sweden. The company plans to begin constructing a commercial-scale plant at the site in 2027, initially with a capacity of 5,000 mt/year. First production is targeted for 2027-28, with output expected to rise to 19,500 mt/year in 2028-29, then reach the planned capacity of 24,500 mt/year.

The company plans to process natural graphite from its Nunasvaara South mine. Talga expects the mine to produce an average of 100,000 mt/year of high-grade natural graphite. The ore will be concentrated at the mine before being transported to Luleå for refining.

The term sheet follows a letter of intent signed in July 2026 and extensive testing of Talnode-C against the specifications of Dainen's Japanese battery customers.

Pricing will be denominated in US dollars on an ex-works basis and linked to a negotiated floor. It will also include a mutually agreed-upon premium reflecting the product's traceability, environmental, social, and governance credentials, and its status as free from foreign entities of concern.

The capacity reservation, commercial framework and negotiation obligations are binding. Both companies have agreed to use commercially reasonable efforts to execute the Master Supply Agreement by March 2027.

"The progression to a binding offtake term sheet with Dainen reflects the successful maturation of Talnode-C through years of intensive testing and customer qualification in one of the world's most demanding battery markets," Talga CEO Martin Phillips said. "It confirms Talga's ability to deliver high-performance, fully traceable anode material from a Western supply chain."

Talga's integrated graphite anode project has been designated as a strategic initiative under both the European Commission's Critical Raw Materials Act and the Net-Zero Industry Act. The European Commission classifies natural graphite as a critical and strategic material because of its essential role in lithium-ion battery anodes and the current lack of local supply. At present, nearly all graphite anode material used by European EV manufacturers is imported from Asia.

Platts, part of S&P Global Energy, assessed natural flake graphite at $435/mt FOB China on Oct. 28, stable day over day and week over week. The price reflected the spot value of natural flake graphite with 94%-95% carbon content and a minus-100 mesh size, delivered to Qingdao port.