TALGA GROUP LTD — Capital/Financing Update 2025

Feb 26, 2025

ASX Release 27 February 2025

ASX:TLG

Talga signs non-binding MoU to secure recycled graphite for battery material innovation

Battery materials and technology company Talga Group Ltd (“ Talga ” or “ the Company ”) ( ASX:TLG ) is pleased to advise it has signed a non-binding memorandum of understanding (“ MoU ”) with Altilium Clean Technology Ltd (“ Altilium ”) to secure a sustainable supply of recycled graphite for its innovative Talnode[®] -C Recycled Series.

Talga is one of the first companies in the world to successfully demonstrate the ability to process recycled graphite for use in battery anode products. The Company is currently completing a commercial study, supported by grant funding from Innovate UK, on producing Li-ion battery anode products using recycled graphite sourced from black mass recyclers. This would respond to the increasing volume of graphite waste in black mass stockpiles and increased customer demand for Talnode[®] -C Recycled Series as a complement to Talga’s natural graphite anode product, Talnode[®] -C.

Under the MoU framework Altilium proposes to supply Talga with up to 16,000 tonnes of recycled graphite over three years commencing 2026, with an initial 2,000 tonnes available in 2025 to support pre-commercial customer sample production. The MoU establishes indicative terms for negotiating a binding contract, which will include a floating price mechanism with agreed floor and ceiling levels, by 12 February 2026. Any binding contract will be subject to certain conditions precedent and should binding agreements be entered into the Company will release details in accordance with its disclosure obligations at that time.

Talga Group CEO, Martin Phillips, commented : “Access to recycled graphite feedstock supports the expansion and diversification of Talga’s anode business. We are pleased to deepen our relationship with Altilium as we continue to make progress in our mission to provide a range of greener, more efficient battery materials. This development also showcases our innovative process technology and complements the ongoing execution of our flagship natural graphite anode project.”

Altilium, backed by leading Japanese trading and investment group Marubeni Corporation and SQM Lithium Ventures, part of world-leading lithium producer Sociedad Química y Minera de Chile (SQM), is a UK-based clean technology group. Altilium recycles batteries from two major UK car manufacturers and Gigafactory waste at its Tavistock and Plymouth sites. Its upcoming Teesside site will be one of Europe's largest, with plans to process battery scrap from over 150,000 EVs annually.

Altilium COO, Dr Christian Marston,commented : “Partnering with Talga aligns with our mission to create a fully circular supply chain for anode materials and builds on our recent success in supplying upcycled cathode active materials (CAM) for validation by a leading OEM. By supplying high purity recycled graphite, we are not only reducing waste and emissions, but also supporting the growth of a sustainable anode material supply chain locally. This collaboration demonstrates the increasing demand for recycled battery materials as the industry moves toward greater resource efficiency and allows us to support automakers with their sustainability targets.”

Talga Group Ltd ABN 32 138 405 419 ASX: TLG

www.talgagroup.com Talga Group @Talga_Ltd

info@talgagroup.com +61 8 9481 6667

Suite 3.03, Level 3, 46 Colin Street West Perth 6005 Australia

By integrating recycled graphite into its advanced anode production processes, Talga can broaden its battery materials portfolio whilst reinforcing its market leadership in sustainability and innovation. The strategic collaboration with battery recyclers, such as Altilium, enables Talga to leverage synergies between new and recycled graphite feedstocks, accelerating the scalability of its anode operations and paving the way for global expansion.

This development also aligns with the EU’s sustainability goals and policies, including the Critical Raw Materials Act, which sets a 2030 benchmark to source 25% of the EU’s strategic raw materials from recycled sources. Additionally, the EU’s Battery Regulation sets a target of at least 70% overall lithiumion battery recycling efficiency by the end of this decade. By transforming spent and waste graphite into high-quality anode material Talga is positioned to play a pivotal role in EV companies, battery manufacturers and recyclers achieving these requirements.

Authorised for release by:

Dean Scarparolo Company Secretary Talga Group Ltd T: +61 (0) 8 9481 6667

For further information please contact:

Mark Thompson Managing Director Talga Group Ltd +61 (0) 8 9481 6667

Nikki Löf Group Communications Manager Talga Group Ltd +61 (0) 8 9481 6667

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About Talga

Talga Group Ltd (ASX:TLG) is a leader in the development of sustainable battery materials. Via innovative technology and vertical integration of our 100% owned Swedish graphite resources, Talga offers a secure supply of products critical to the green transition.

Talga’s flagship product, Talnode[®] -C, is a natural graphite anode material made using renewable energy for a low emissions footprint. Battery materials under development include an advanced silicon anode product, recycled graphite anode material and conductive additives for cathodes.

Website: www.talgagroup.com

About Altilium

Altilium, a UK-based clean tech company, will transform the automotive supply chain by providing highvolume, low-carbon cathode and anode materials from recycling waste streams, such as end-of-life EV batteries.

The company’s proprietary EcoCathode ™ process converts end-of-life EV batteries and manufacturing scrap into local, sustainable battery precursors, cathode active materials (CAM), and pCAM for direct reuse in new batteries.

Altilium’s first mini-commercial facility recently commenced operations in Plymouth while its planned Teesside plant will be one of Europe's largest EV battery recycling facilities. The plant will process scrap from over 150,000 EVs every year, creating 30,000 MT of CAM and 20,000 MT of graphite, enough to supply 20% of UK demand by 2030.

Website: www.altilium.tech

Forward-Looking Statements & Disclaimer

Statements in this document regarding the Company's business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forwardlooking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements.

This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular persons.

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