Talga (ASX:TLG) share price surges 9% on expanded partnership agreement

The company's shares are starting the week off on a positive note…

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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 hovering 8.93% higher to a 3 month high of $1.525 apiece.

A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

Talga explores electrification strategy

In today's statement, Talga advised it has expanded the Memorandum of Understanding (MoU) with leading global technology leader, ABB.

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.

As such, Talga is seeking to electrify its underground mining operations once the expansion phase of its battery anode operations is reached. An electrification strategy will be studied under the extended MoU, focusing on adopting ABB's Ability eMine solutions.

Under the framework, ABB will also provide its industrial automation and electrification expertise for Talga's initial operation. In addition, both companies will work on a front-end engineering and design (FEED) in constructing the Vittangi Anode Project.

It is projected the commercial FEED stages will be completed around June 2022. Executive binding agreements with ABB are expected to take place following construction and operations.

Talga managing director, Mark Thompson commented:

We are very pleased to deepen our relationship with ABB in the development of what will be the largest integrated lithium-ion battery anode production facility in Europe.

The pursuit of innovation towards zero-emission mining is a goal we share with ABB, and we are excited to continue the expanded partnership towards construction of the Vittangi Anode Project and future expansions.

Talga share price summary

Since the beginning of the year, Talga shares have moved mostly sideways, posting a 6% loss for the period. However, when looking at the last 12 months, its share price has posted a 150% gain.

Based on today's price, Talga commands a market capitalisation of roughly $460.9 million and has approximately 303 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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