The Talga Group Ltd (ASX: TLG) share price started Wednesday on a high note following a positive company announcement. The battery anode company advised it has teamed up with a leading manufacturer of anode materials used in lithium-ion batteries.
But after touching an intraday high of $2.21 in early trade, the Talga share price plummeted into the red and is trading at $2.01, down 1.95% at the time of writing.
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Talga enters technology partnership
In today's announcement, Talga revealed it has signed a non-binding Memorandum of Understanding (MoU) with Long Time Technology Co. Ltd.
Under the framework, both companies will look at entering into an anode testing contract to secure increasing material volumes and complete qualification programs. Talga's materials will be produced from its existing anode facilities and upcoming EVA plant in Lulea, Sweden.
The company said once the anode testing was complete, an anode materials supply contract would be created to secure supply volumes for customers. The battery anode products will be delivered to certain European and Asian markets.
Talga managing director Mark Thompson commented:
We are excited to enter a technology and commercial partnership with LT Tech towards enabling cleaner and better batteries for the world.
As electric vehicle demand ramps up, we see a growing market for blends made from our green natural graphite anode and qualified synthetic anode made with hydropower. We also see excellent synergies between our operational locations and LT Tech's partners and customers.
Talga share price summary
In the back end of 2020, Talga shares accelerated to reach an all-time high of $2.15 following positive investor sentiment. Since then, its shares have traversed mostly sideways until recently, registering a gain of around 35% in 2021.
Based on today's price, Talga has a market capitalisation of roughly $618 million, with approximately 304.7 million shares on issue.
