• Talga's grant application for 'Circular Graphite Anode at Industrial Scale for Low-emission Batteries' project not approved
• Swedish Energy Agency cites lack of available funds within Industriklivet program
• FEED study for 5,000 tpa anode plant continues, supported by previous IK1 grant

Talga Group Ltd has provided an update regarding the company's grant application for the 'Circular Graphite Anode at Industrial Scale for Low-emission Batteries' project under the Swedish Energy Agency's second Industrial Leap/Industriklivet ('IK2') program. In correspondence to Talga, the Swedish Energy Agency has not approved the grant, advising that 'for the budget years to which the application relates within the framework of Industriklivet's authorisation, there are no funds available corresponding to the amount applied for' (SEK 1.1b/A$180m). This does not impact the ongoing fully funded Front-End Engineering Design ('FEED') study (total value SEK 190m/A$30.8m) for the 5,000 tpa commercial-scale sustainable anode plant, supported by the successful first Industrial Leap ('IK1') grant of SEK 82.6m (A$13.35m). The modular project design positions Talga for a Final Investment Decision after FEED completion and then phased growth to 24,500 tpa. Talga continues to advance multiple funding strategies to drive production from the current EVA anode plant to commercial scale, including a €70m (A$125m) EU Innovation Fund grant and a €150m (A$250m) undrawn debt facility pre-approved with the European Investment Bank. Negotiations are progressing to optimise terms and accelerate access to funds to establish the first train of the anode production plant.

Talga is confident in securing the additional funds for its first anode line post-FEED, with discussions with strategic partners on funding and offtake arrangements advancing.