Talga Group Ltd. · ASX:TLG
Talga — Benchmark Week 2020: Battery Megafactories Europe
28 slides from Talga's conference presentation, Dec 10, 2020
Slide 1: Talga Presentation at Benchmark Week Battery Megafactories Europe 2020
ASX Release 10 December 2020 ASX:TLG Talga Presentation at Benchmark Week Battery Megafactories Europe 2020 For personal use only Battery anode company Talga Group Ltd (“Talga” or “the Company”)(ASX:TLG) is pleased to provide a copy of the presentation delivered by the Company’s Managing Director, M
Slide 2: Building and Scaling Anode Supply for European Batteries
For personal use only TALGA GROUP LTD (ASX:TLG) BUILDING AND SCALING ANODE SUPPLY FOR EUROPEAN BATTERIES Battery Megafactories Europe 2020, Benchmark Mineral Intelligence © TALGA GROUP LTD, 9 DECEMBER 2020
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer Talga Group Ltd ACN 138 405 419 (the Company) is the issuer of this presentation. Niska Scoping Study The Niska Scoping Study is a preliminary technical and economic study of the potential viability of developing the Nunasvaara North, Niska South and Niska North g
Slide 4: 2020: EV Demand Kicks In
2020: EV Demand Kicks In (Finally) EV sales take off and manufacturers expand EV models driving Li-ion battery demand For personal use only EV Share of Sales (%) (1) Number of EVs Launched by 2025 (2) 0 20 40 60 80 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2
Slide 5: Battery Material Demand
Battery Material Demand For personal use only EV demand and legislative pressure on internal combustion engines creating huge new demand for battery materials on top of rebounding industrial demand Graphite is the largest single active material in Li-ion battery by volume ~3.5 million tonnes coated
Slide 6: 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 8 GWh, later 32 GWh Ramp up to 32 GWh + 2 GWh Germany, 2022 Slovakia, 2024 14 GWh, later 24 GWh 10 GWh United Kingdom, 2010 Germany, 2021 2.5 GWh Ra
Slide 7: Supported by Government
Supported by Government Governments incentivising EV investments and development of a sustainable supply chain For personal use only France to help auto sector UK to ban selling new gas European Alliance to Invest Legislation Ushering in Battery Passport Initiative will with measures worth $8.8B and
Slide 8: Battery Opportunity
Battery 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 anode for Li-ion batteries would use: responsibly extracted natural graphite 100% sustainable electricity local
Slide 9: Talga Group
Talga Group For personal use only Talga is building Europe’s largest anode supply chain, running on 100% renewable electricity and natural materials, to produce ultra-low emission anode products for greener Li-ion batteries Tier 1 location – Sweden; local to battery megafactories, with industry-lead
Slide 10: Talga Europe Operations
Talga Europe Operations European-based 100% controlled supply chain For personal use only • Talga Sweden Integrated graphite mine Anode & anode production Production • Talga Germany Pilot Process & Metallurgical process pilot Distribution facility & EU customer network • Talga UK Product Technology
Slide 11: In-house Expertise
In-house Expertise For personal use only Deep industry knowledge enables direct commercial customer relationships and competitive advantage Talga develops high performance Li-ion battery anodes and graphene additives integrating its: unique natural carbon source processing technology in-house produc
Slide 12: Anode Technology Moat
Anode Technology Moat Full in-house technology capability with 100% controlled mine-to-product supply chain For personal use only High quality production using natural graphite from unique high grade graphite resource + Strong processing and in-house product technology to bridge battery anode moat a
Slide 13: Position in the Supply Chain
Position in the Supply Chain Integrated supplier of anode products directly to EV battery manufacturers For personal use only Raw Materials Battery Materials Cell Manufacturer & OEMs OEM ü Highly engineered differentiated products Anode ü Proprietary processes & product development Graphite Miners /
Slide 14: Building the Solution
Building the Solution For personal use only Planned anode refinery in Luleå, Sweden to be fed graphite feedstock from Talga’s Vittangi project to produce 19,000tpa coated anode (Talnode®-C) for 22 years starting in 2023 PFS shows strong financial potential with pre-tax annual revenue of US$188m and
Slide 15: Flagship Product: Talnode-C
Flagship Product: Talnode®-C Anode with synthetic-like performance, low impedance and superlative low temperature capacity For personal use only 100% Capacity Retention 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 25°C 0°C Market Leader Talnode-C SEE: ASX:TLG 21 MAR 2019. 14
Slide 16: Path to >100,000tpa Anode Production
Path to >100,000tpa Anode Production Niska adds to Vittangi to become largest anode producer outside China For personal use only Vittangi Anode Project (PFS) Niska Expansion(1) (Scoping Study) Talnode®-C 19,000tpa Talnode®-C 84,700tpa Niska North LOM 22 years Talphene® 8,470tpa Pre-tax NPV8 US$1,056
Slide 17: For Talga it Pays to be Green
For Talga it Pays to be Green The same factors that make Talga cost competitive also drive lower emissions For personal use only 900 $9,000 Coated Anode Production Cost (US$/tonne) CO2-emissions (g CO2/kWh) 800 $8,000 700 $7,000 600 $6,000 500 $5,000 400 $4,000 300 $3,000 200 $2,000 100 $1,000 0 $0
Slide 18: Growing Partnerships
Growing Partnerships Confidential qualification processes under active customer engagements including majority of For personal use only announced European Li-ion battery manufacturers and six of the world’s major automotive OEMs SEE: ASX:TLG 30 OCT 2015 and 5 FEB, 26 MAR, 4 SEP 2018 and 15 JAN, 2 OC
Slide 19: Talga Anode Technology Roadmap
Talga Anode Technology Roadmap Talga graphite derived battery anode range designed for growth and ‘future-proofing’ For personal use only Silicon Talnode®-Si Silicon-graphene anode Current Anode for higher energy density Solid State Talnode®-C Talnode®-E Energy Capacity Graphite anode for large volu
Slide 20: 2020 Strong Performance
2020 Strong Performance Delivering Milestones and Advancing Towards Higher Value For personal use only A$/Share Volume (Million) $2.50 16 25,000t trial mine permit approved Vo lu me (RHS) 14 100,000tpa mine permits submitted $2.00 Share Price (LHS) 12 19,000tpa anode DFS commenced $1.50 10 LOI signe
Slide 21: Looking Ahead
Looking Ahead Potential near to medium term catalysts For personal use only JVs for project development, funding and downstream Talnode® expansion Off-take and commercial partnerships with key customers UK feasibility studies for Talnode®-C and Talnode®-Si Funding for 19,000tpa coated anode developm
Slide 22: Talga Group Ltd
For personal use only TALGA GROUP 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: Storgatan 7,
Slide 23: Appendix
For personal use only Appendix
Slide 24: Vittangi Anode Project: Timeline
Vittangi Anode Project: Timeline For personal use only Trial mine approved and full-scale mining applications submitted for 2023 production 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 APPROV
Slide 25: Vittangi Anode Project PFS
Vittangi Anode Project PFS For personal use only Key outcomes confirms technically and financially robust initial 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-
Slide 26: Niska Scoping Study
Niska Scoping Study For personal use only Key outcomes outlines pathway to globally significant battery anode production PARAMETER UNITS OUTCOME Annual ore mining rate tonnes 400,000 Average annual production of Talnode®-C tonnes 84,700 Average annual production of Talphene® tonnes 8,470 Life of Min
Slide 27: 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 28: 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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