By Tom Kerr, CFA
OTCQX: TLGRF
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In July 2026, Talga (OTCQX: TLGRF) made two important announcements regarding the supply of its anode products to customers.
➢ On July 3rd, the company announced that it has started commercial deliveries of its flagship battery graphite anode product Talnode®-C to its customer Nyobolt under a binding offtake agreement first established in 2025.
After final customer qualification and audits were done, the first shipment at the contracted commercial price under the agreement was delivered from Talga’s EVA demonstration plant in Luleå, Sweden. This marks the transition from qualification volumes to ongoing sales revenue and represents a significant commercial milestone for Talga and the European battery ecosystem. The balance of the 3,000-tonne offtake will be supplied from Talga’s planned commercial-scale anode plant, with construction targeted to begin in 2027, subject to the FID.
Pricing terms were not announced and remain private. Although the initial shipment of 3,988 kg of anode product does not have a material financial impact, it marks a major milestone as the first commercial natural graphite anode produced outside Asia and supplied into the global battery supply chain. The anodes were manufactured in Sweden using Talga’s own natural graphite resources and demonstrate the successful scale-up of the company’s proprietary technology.
Nyobolt is a UK-based battery technology company developing ultra-fast charging, high-power lithium-ion batteries. They recently completed a Series C funding round at a US$1 billion valuation. Talga's Talnode®-C has been qualified for use in Nyobolt's batteries, which can charge in under five minutes. Nyobolt's strategic partners include Scania for heavy-duty commercial vehicles and mining equipment, and Symbotic for AI-powered warehouse robotics, where rapid charging and high power density improve uptime and productivity.
This commercial relationship highlights growing demand for Talnode®-C in high-performance battery applications beyond passenger EVs. These include commercial and industrial drones, heavy-duty vehicles, defense systems, robotics, and AI data center backup power. These markets require reliable, high-power energy storage with rapid charging to maximize uptime and support mission-critical operations. Talnode®-C is well positioned to address this demand through its low internal resistance, ultra-high crystallinity, long cycle life, ultra-fast charging capability, and secure FEOC-free European production.
Beyond the Nyobolt offtake, Talga is advancing negotiations with multiple prospective customers, with several leading battery manufacturers across Europe, Japan, and North America in the final stages of qualification and onboarding. Commercial activity has accelerated as battery producers, government agencies, and financing partners seek diversified, high-performance anode supply chains. This growing commercial momentum is expected to support financing and construction of Talga's large-scale integrated Vittangi Anode Project.
➢ On July 5th, announced it has executed a non-binding Letter of Intent with Mitsubishi Chemical Corporation, a major Japanese manufacturer of lithium-ion battery materials. The LOI creates a structured engagement to begin ongoing technical evaluations and commercial discussions regarding potential supply of Talga’s anode products to MCC for hybrid electric vehicle batteries.
The LOI establishes a framework for negotiating a long-term commercial supply relationship, targeting a conditional Supply Terms Sheet by September 2026 and a definitive three-year Supply Agreement by December 2026. Both parties will also collaborate on product specifications, quality standards, supply chain due diligence, ESG performance, and the development of FEOC-free, low-carbon anode materials.
Talga’s engagement with a major international battery materials producer represents a strategic commercial opportunity to validate its Talnode® graphite anode materials in the high-growth hybrid electric vehicle sector while establishing new supply-chain relationships with Japanese industry. We don’t expect any material financial impact at this time; however, the collaboration highlights growing demand for Talga’s 100%-owned, vertically integrated Swedish mine-to-anode operations, which produce high-performance, fast-charge and high-power graphite products using FEOC-free (Foreign Entity of Concern) supply sources.
Valuation
We believe that Talga Group is poised to produce rapid and high-margin revenue growth over the next 5-10 years as the Vittangi project (both mine and plant) becomes fully operational. When the refinery reaches full capacity, the entire project could generate over A$200 million in high-margin revenue. We believe the company will generate positive EBITDA and net profits in the 2028 fiscal year ending 6/30/28.
Our primary valuation tool utilizes a Discounted Cash Flow process. Under the scenario described below, our DCF based valuation target is approximately US$1.71 per share. Our target price may be conservative as it utilizes a high discount rate of 15.0% due to the unpredictability of earnings, higher prevailing interest rates, and the timeline for reaching full-scale commercialization.
We also use forward Price / Revenue multiples relative to peers as a backup methodology to create a target price for TLGRF stock. Separately, we also add an in situ analysis to create a range of values for the graphite mines.
We apply an 11.9x revenue multiple to FY 2028 revenues and discount back at a 15% annualized rate. This methodology provides a value of approximately US$1.03 for TLGRF stock.
Based on this range of values, we arrive at a near-term price target of US$1.50 per share. As the overall project development continues to progress throughout CY 2026 and CY 2027, there appears to be substantial upside above that target price.
Although we have not incorporated the value of the Vittangi mine into our price target at this time due to its non-operating status, we believe it’s worth noting for investors the long-term value potential of the mine. Based on a discounted calculation of Inferred and Indicated resources for the Vittangi mines, we believe the mine on its own could be valued between US$0.38 and US$1.19, which may provide a floor price for TLGRF stock.
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