SQM Partners with Talga in Swedish Lithium Initiative

Battery materials and technology company Talga Group Ltd (ASX:TLG) is excited to announce an Earn-in Agreement with the leading lithium miner and producer Sociedad Química y Minera de Chile S.A. (through its subsidiary SQM Australia Pty Ltd) (NYSE:SQM; SSE:SQM-B, SQM-A) for Talga's Aero Lithium Project in Sweden.

Under the binding Agreement, Talga has given SQM the right to exclusively fund exploration expenditures of up to USD 19.0 million over the next seven years on the Aero Lithium Project, in exchange for up to a 70% ownership interest in the project. Talga will also receive a management fee for each stage of the potential earn-in arrangement, along with a success fee if a decision to mine at Aero is made. Talga retains all rights and obligations related to graphite minerals within the Aero project.

SQM has conducted thorough due diligence on the Aero project, including site visits. Under the Agreement, the parties may also agree to collaborate on potential new lithium areas and projects in Sweden. The Agreement is pending clearance from Swedish foreign direct investment authorities.

Talga Managing Director, Mark Thompson, expressed his excitement about the partnership with SQM on the Aero lithium project in Sweden. He noted that this collaboration represents a crucial opportunity to establish a European lithium supply, supporting the green transition and EU localization goals. Thompson emphasized that Aero is among the rare large-scale lithium hard rock projects in Europe, with the potential to significantly impact the region’s battery and electric vehicle industry.

Mark Fones, CEO of SQM's International Lithium division, remarked, "We are pleased to enter into this agreement, reflecting our commitment to building a global and competitive lithium asset portfolio. Expanding into promising new regions like Sweden has been a strategic objective for us. Partnering with Talga, who has proven expertise in the area, significantly advances this goal."

Aero is one of Talga's battery metal assets, distinct from its advanced-stage Li-ion battery graphite anode business, known as the Vittangi Anode Project. Aero spans 270 square kilometers south and east of Gällivare, where Talga has identified lithium-prospective pegmatites over a total strike length of approximately 50 kilometers, with surface samples yielding up to 1.9% Li2O.

Talga Group Ltd (ASX:TLG) is at the forefront of developing sustainable battery materials. Utilizing innovative technology and the vertical integration of our wholly-owned Swedish graphite resources, Talga ensures a reliable supply of products essential for the green transition. The company's flagship product, Talnode®-C, is a natural graphite anode material manufactured using renewable energy, which leads to a low emissions footprint. Company are also developing advanced battery materials, including a cutting-edge silicon anode product and conductive additives for cathodes.