Talga Group Eyes 10,000 tpa Graphite Deal With Fortum to Supply European Battery Chain
Key Takeaways
- Talga Group (ASX: TLG) has signed a non-binding MOU with Fortum Battery Recycling Oy to explore combining primary and recycled graphite into blended anode materials for European battery supply chains.
- Indicative volumes start at 400 tpa from 2029 and are targeted to ramp to 10,000 tpa by 2034, with the MOU long-stop date set at 31 December 2033.
- The collaboration would give Talga access to recycled graphite feedstock from Fortum's Harjavalta facility — Europe's largest closed-loop hydrometallurgical battery recycling plant — supplementing its Vittangi primary resource.
- Fortum's low-carbon electricity portfolio is also being evaluated as a potential power supply solution for Talga's Vittangi Anode Project, adding an energy dimension to the partnership.
- All commercial outcomes remain conditional on Final Investment Decisions, construction completion, and mass-production commissioning by both parties — no binding agreements are in place.
Talga and Fortum sign MOU to explore European graphite and battery materials collaboration
Talga Group Ltd (ASX: TLG), through its Swedish subsidiary Talga AB, has signed a non-binding Memorandum of Understanding with Fortum Battery Recycling Oy, a Finnish battery recycler, to explore strategic collaboration across the European graphite and battery materials value chain. The agreement brings together Talga’s primary graphite production capabilities and Fortum’s battery recycling operations, with a targeted commercial start from 2029 and indicative volumes expected to ramp to 10,000 tpa by 2034. Graphite is designated a critical mineral by both the US and the EU, making reliable European supply a strategic priority.
When big ASX news breaks, our subscribers know first
What the MOU covers
The MOU establishes a framework for evaluating several potential workstreams. The two primary areas of collaboration are:
- Supply of graphite recovered from Fortum’s recycling operations for Talga to refine into battery anode materials, complementing Talga’s primary production
- Joint development of blended or optimised anode materials combining primary and recycled graphite streams
The parties are also discussing power supply and energy solutions to support Talga’s Vittangi Anode Project, with Fortum’s low-carbon electricity generation portfolio identified as a potential resource.
Pricing, product specification, and commercial structures will be evaluated during the MOU feasibility work, with any binding agreements subject to further due diligence and board approvals. Key terms of the MOU are summarised below.
| Term | Detail |
|---|---|
| Binding status | Non-binding |
| Term / expiry (Long-Stop Date) | Earlier of Sales Agreement signing or 31 December 2033 |
| Condition precedent | FID, construction completion and mass-production commissioning by both parties |
| Targeted commercial start | from 2029 |
| Indicative volumes | 400 tpa (2029), ramping to 10,000 tpa by 2034 |
Why graphite circularity matters for Europe’s battery supply chain
To understand why this agreement is strategically significant, it helps to understand the difference between primary and recycled graphite. Primary graphite is mined directly from the ground — in Talga’s case, from its Vittangi Anode Project. Recycled graphite is recovered from used lithium-ion batteries or battery production waste and reprocessed for reuse. Combining both streams into a single commercial offering is what “graphite circularity” refers to.
Graphite is the principal material used in the anode (the negative electrode) of every lithium-ion battery. Without a reliable graphite supply, battery production stalls. Europe currently depends heavily on imports for this input, which is why the US and EU have both formally designated graphite a critical mineral tied to energy security, advanced manufacturing, and national security objectives.
Diversifying feedstock across primary and recycled sources reduces dependence on any single supply chain and supports Europe’s circular economy goals. For Talga specifically, access to recycled graphite from Fortum’s operations would provide additional feedstock optionality beyond its Vittangi primary resource. Fortum brings significant credentials to the arrangement: it operates Europe’s largest closed-loop hydrometallurgical battery recycling facility in Harjavalta, Finland, and runs battery pretreatment operations in Germany.
The next major ASX story will hit our subscribers first
Strategic fit and what comes next
Each party contributes distinct and complementary capabilities to the collaboration. Talga brings high-purity primary graphite mining expertise and proprietary anode production technologies. Fortum contributes battery recycling capabilities, sustainable battery raw materials production, and its low-carbon electricity portfolio.
The announcement notes that the companies plan to progress specific opportunities over the coming months, with any binding agreements requiring further due diligence and board approvals.
Talga CEO Martin Phillips framed the partnership’s purpose clearly:
Martin Phillips, CEO, Talga Group
“Europe needs secure, sustainable and diversified sources of graphite to support the continued growth of its key industries, including its lithium-ion battery market. We are pleased to work with Fortum to evaluate how primary and recycled resources can be combined and to explore broader cooperation that can strengthen Talga’s Vittangi Anode Project and Europe’s battery ecosystem.”
Anssi Airas, Head of Fortum Battery Recycling, highlighted the broader supply chain rationale:
Anssi Airas, Head of Battery Recycling, Fortum
“Strengthening the competitiveness of Europe’s battery industry requires collaboration across the whole value chain. With graphite playing an increasingly strategic role in battery supply chains, this Memorandum of Understanding provides a framework for evaluating how our respective capabilities can contribute to more resilient and circular battery material value chains in Europe.”
The MOU remains non-binding and exploratory at this stage. Commercial outcomes are conditional on each party reaching a Final Investment Decision, completing construction, and achieving mass-production commissioning.
Don’t Miss the Next ASX Battery Materials Breakthrough
Big News Blast delivers FREE breaking ASX mining and energy alerts directly to your inbox within minutes of release, complete with in-depth analysis. Join 30,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at Discovery Alert to start receiving real-time coverage the moment news breaks.