Talga Group Ltd. · ASX:TLG
Talga — Talga Resources — CSIRO Electrochemical Energy Storage Series (October 2020)
33 slides from Talga's conference presentation, Oct 14, 2020
Slide 1: ASX Release: Talga Presentation at CSIRO Event
ASX Release 14 October 2020 ASX:TLG Talga Presentation at CSIRO Event Battery anode and graphene additives company Talga Resources Ltd (“Talga” or “the Company”) (ASX:TLG) is pleased to provide a copy of the presentation delivered at the CSIRO Electrochemical For personal use only Energy Storage Ser
Slide 2: CSIRO Electrochemical Energy Storage Series
For personal use only Talga Resources (ASX:TLG) CSIRO Electrochemical Energy Storage Series Sustainable Anode: Feeding the Green Beast © TALGA RESOURCES LTD, 14 OCTOBER 2020
Slide 3: EV sales set to grow 700% by 2030
EV sales set to grow 700% by 2030 Long-heralded shift to EV’s happening now, driving massive new demand for Li-ion batteries For personal use only 16 14 12 Million/annum 10 8 6 4 2 SOURCE: WOOD MACKENZIE ”ENERGY TRANSITION OUTLOOK H1 2020”, SEPTEMBER 2020. 2
Slide 4: EU: Fastest Growing Battery Market
EU: Fastest Growing Battery Market For personal use only Germany, 2024 Sweden, 2021 16 GWh, later 24 GWh 32 GWh, later 40 GWh Norway, 2024 Norway, 2023 8GWh, later 32 GWh Ramp up to 32 GWh + 2 GWh Germany, 2022 Slovakia, 2024 14 GWh, later 100 GWh 10 GWh United Kingdom, 2010 Germany, 2021 2.5 GWh Ra
Slide 5: Li-ion Battery Material Demand
Li-ion Battery Material Demand For personal use only EV demand and legislative pressure on internal combustion engines creating huge new demand for battery materials Graphite makes up 40 - 50% volume of active battery materials as the anode ~3.2Mt of graphite anode required by 2029, up from <0.6Mt t
Slide 6: Battery Graphite Anode
Battery Graphite Anode Fully coated active anode powder ready for battery manufacturer use For personal use only 5
Slide 7: Anode Opportunity
Anode Opportunity For personal use only Build a new anode supply chain outside of Asia to serve the European and North American markets Production of the most sustainable and lowest cost graphite would use: natural graphite (not synthetic) using 100% sustainable electricity locally produced material
Slide 8: Talga's Mission
Talga’s Mission For personal use only Talga is building an integrated graphite anode facility in Sweden running on 100% renewable electricity, to produce ultra-low emission coated anode for greener Li-ion batteries Proven high-performance anode products and qualification process with battery manufac
Slide 9: Our Journey
Our Journey For personal use only 2010 Talga Gold founded by Mark Thompson and listed on ASX (code TLG) 2011 Acquires first graphite permits in Sweden 2012 Acquires Teck (Sweden) subsidiary to gain control of graphite deposits at Vittangi and drills out world’s highest grade JORC graphite resource 2
Slide 10: Global Operations
Global Operations European-based 100% controlled supply chain to serve global markets For personal use only • Talga Sweden Anode Integrated graphite mine Production & anode production in Luleå • Talga Germany Pilot Process & Distribution Rudolstadt test process facility & direct rail to EU locations
Slide 11: In-house Expertise
In-house Expertise For personal use only Talga develops high performance Li-ion anodes and battery materials enabled by its unique: natural carbon source processing technology in-house product technology Strong technology capability with over 20 PhDs and Engineers with energy product experience incl
Slide 12: Graphite Anode Moat
Graphite Anode Moat Factors of performance and capability for commercial anode development For personal use only ELECTROLYTE/ADDITIVES CELL BUILDING FEC/VC, LP30 Half/full cell, C/A ratio, calendaring, expansion MILLING/SHAPING BINDER Loading ratio, Duration, Cost, PSD CMC/SBR, PAA, PVDF MIXING THER
Slide 13: Position in the Supply Chain
Position in the Supply Chain Talga’s peers are chemical companies, not miners, and our customers are cell/OEM manufacturers For personal use only Raw Materials Coated Anode Cell manufacture Power Train OEM Graphite Miners Graphite Shapers/ Spheronisers Graphite Purifiers SOURCE: RECRUIT, AVICIENNE.
Slide 14: Talga Anode Technology Roadmap
Talga Anode Technology Roadmap Talga graphite derived battery anode range designed for growth and ‘future-proofing’ For personal use only Silicon Capacity Talnode®-Si Silicon-graphene anode Current Anode for higher energy density Solid State Talnode®-C Talnode®-E Graphite anode for large volume, low
Slide 15: Current Gen Anode: Talnode-C
Current Gen Anode: Talnode®-C Retention of 100% capacity and 100% cycle efficiency at freezing temperature (0°C) For personal use only 120% 100% Capacity Retention 80% 60% 40% 20% 0% 25°C 0°C Market Leader Talnode-C SEE: ASX:TLG 21 MAR 2019 14
Slide 16: Ultra-Fast Charge Anode: Talnode-X
Ultra-Fast Charge Anode: Talnode®-X Talnode®-C in real-world endurance test of industrial pouch cells at low temperature For personal use only THE LACAMA, DEVELOPED BY IV ELECTRICS THE STELVIO PASS, ITALY SEE: ASX:TLG 26 MAR 2019 15
Slide 17: Silicon Anode: Talnode-Si
Silicon Anode: Talnode®-Si High capacity anode using silicon and graphene to double energy capacity (add range to EV) For personal use only Nanostructure Porous Graphene Silicon composite electrode additive for existing graphitic anodes Produced by chemo-mechanical method (not CVD) using lower cost
Slide 18: Building the Solution
Building the Solution For personal use only Talga is building a wholly owned fully integrated anode supply chain in Sweden with development of its anode refinery fed by graphite from Talga’s Vittangi project Planned 19,000tpa of anode production for 22 years from 2023 following Electric Vehicle Anod
Slide 19: Low Emission Leader
Low Emission Leader Production emissions becoming more important to customers purchasing decisions For personal use only 900 800 To produce 100GWhr of Li-ion batteries: CO2-emissions (g CO2/kWh) 700 600 Talga’s north Sweden anode production requires 2,300 GWhr power and emits 500 approximately: 100t
Slide 20: Cost Leader
Cost Leader Collective advantages enable Talga to be globally competitive low-cost anode producer For personal use only $9,000 Coated Anode Production Cost (US$/tonne) Highest grade graphite resource $8,000 $7,000 100% anode flake $6,000 (no basket of industrial products) $5,000 $4,000 Very high ano
Slide 21: Expansion Roadmap
Expansion Roadmap For personal use only Niska Expansion Graphite Resources: 6.5Mt Vittangi Anode Project Development options being defined Graphite Ore Reserve: 1.9Mt Niska Scoping Study: Nov 2020 Production: 19,000tpa Drilling to extend & expand: 2021 Planned Start: Year 2023 SEE: ASX:TLG 24 JUNE a
Slide 22: Growing Partnerships
Growing Partnerships Confidential qualification processes under active customer engagements including majority of For personal use only announced European Li-ion battery manufacturers and six of the world’s major automotive OEMs SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OC
Slide 23: Talga Growth Strategy
Talga Growth Strategy Growing in line with our target market and our customers For personal use only 2025 EXPANSION 2023 - European megafactory growth COMMERCIAL - Niska expansion - Next generation anodes - European megafactories online - Nunasvaara South production - 19,000tpa refinery anode capaci
Slide 24: Recent Milestones
Recent Milestones For personal use only ü Partnerships underway to jointly develop project including Mitsui ü 36 commercial engagements for Talnode® underway including Farasis Energy (supplier to Daimler) ü Approval for 25,000t mining operation (5,000t Talnode® production) received ü Commercial 100,
Slide 25: Corporate Overview
Corporate Overview CAPITAL STRUCTURE For personal use only ASX Listing Code: TLG ASX:TLG SHARE PRICE (YEAR TO DATE) Market Capitalisation: $206M Listed Shares: 264.1M Unlisted Options: 8.0M Cash (30 Jun 2020): $5.1M Placement (Aug 2020) $10.0M MAJOR SHAREHOLDERS Smedvig (Family Office) 9.7% JP Morga
Slide 26: A Greener Battery Anode Future
A Greener Battery Anode Future For personal use only Talga is building a responsible and globally competitive anode production business in Europe 25
Slide 27: Disclaimer
Disclaimer For personal use only Talga Resources Ltd ACN 138 405 419 (the Company) is the issuer of this presentation. Forward-looking statements This presentation contains forward-looking statements. Those forward-looking statements reflect views held only as at the date of this presentation. Any s
Slide 28: Talga Resources Ltd contact details
For personal use only TALGA RESOURCES LTD ASX Code: TLG Head Office: 1st Floor, 2 Richardson Street, West Perth WA 6005, Australia Phone: +61 8 9481 6667 Email: info@talgagroup.com Website: www.talgagroup.com GLOBAL OPERATIONS Talga Sweden: Vänortvägen 2, 981 32 Kiruna, Sweden Talga Sweden: Storgata
Slide 29: Appendix
For personal use only Appendix
Slide 30: PFS Key Outcomes
PFS Key Outcomes For personal use only Confirms technically and financially robust project PARAMETER UNITS OUTCOME Annual ore mining rate tonnes 100,000 Average annual production of Talnode®-C tonnes 19,000 Life of Mine (LOM) years 22 Pre-tax NPV8 (real) $M $1,056 Pre-tax IRR % 55% Capex $M $174 Pay
Slide 31: Project Development Timeline
Project Development Timeline Trial mine approved and full scale mining applications submitted for 2023 production For personal use only 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 25,000 TONNE TRIAL MINE PERMIT MINE PERMIT SUBMISSIONS COMMERCIAL DFS MINE & REFINERY APPROVALS
Slide 32: JORC Graphite Reserve & Resources
JORC Graphite Reserve & Resources For personal use only Ore Reserve 3, 6 Tonnes Graphite (% Cg) Nunasvaara (JORC 2012) 1,935,000 23.5 Proven 0 0 Probable 1,935,000 23.5 Mineral Resources 1, 2, 4, 5, 7, 8, 9 Tonnes Graphite (% Cg) Vittangi Nunasvaara (JORC 2012) 14,900,000 23.4 Indicated 10,400,000 2
Slide 33: Competent Person Statements
Competent Person Statements For personal use only The Niska Mineral Resource estimate was first reported in the Company’s announcement dated 15 October 2019 titled ‘Talga boosts Swedish graphite project with maiden Niska resource’. The Company confirms that it is not aware of any new information or
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