Posted By Graphene Council, Friday, June 26, 2020
Overwhelming European demand sees Australia’s battery anode company Talga Resources plan for expanded output at its new Swedish battery anode factory.
Expressions of interest received for Talga’s lithium-ion battery anode products exceed 300% of planned annual capacity of the Vittangi Anode Project, the company says.
Talnode products are now in 36 active commercial engagements covering the majority of planned European li-ion battery manufacturers and six major global automotive OEMs.
Talga says it’s expanding the scale of the Niska scoping study for the Vittangi Project to review larger anode production options as a result of this significant interest.
Li-ion battery megafactories are set to require more than 2.5 million tonnes per annum (tpa) active anode material by 2029, up from about 450,000 tpa anode production today, with Europe the fastest growing market.
That’s because worldwide li-ion battery demand continues to rapidly increase, with global battery manufacturing capacity set to exceed 2.5 tera-Watt hours (TWh) per annum by 2029 across 142 battery plants.
“Our engagement with European battery companies and automotive OEMs has grown rapidly, with customers attracted by the potential of locally produced anode at competitive costs and with world-leading sustainability,” Talga managing director Mark Thompson says.
”As we progress Talnode-C through commercial qualification stages with customers it is pleasing to note that interest now greatly exceeds our original planned production, and that the need to review expansion options has arisen this early.”
The increased interest means the company is targeting completion of the Niska scoping study in Q3 2020.
While COVID-19 has severely impacted EV sales in the short term, Bloomberg New Energy Finance data shows EV sales hold up better than internal combustion engine (ICE) vehicles due to new (lower cost) models and supportive government policies.
In the quarters prior to the COVID-19 outbreak, EV sales as a percentage of total passenger vehicles rose rapidly in the EU, with Germany and France recording increases of 100% during the period.
Numerous countries across Europe have implemented some form of financial incentives towards customer uptake of EVs, and post COVID-19 these have increased markedly in some countries.
Talga is entering the European market at a time when 100% of anode supply is still sourced from Asia. The company’s marketing team reports that, post COVID-19, localisation is becoming an increasingly significant factor influencing customer’s purchasing decisions.