The Talga Resources Ltd (ASX:TLG) share price hit a record high on Thursday. Here’s why the battery anode company’s shares are on fire…
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Although the Talga Resources Ltd (ASX: TLG) share price finished the day 2% lower at $1.74 on Thursday, that is only really half the story.
At one stage today, the battery anode company’s shares stormed as much as 13.5% higher to a record high of $2.01.
When the Talga Resources share price hit that level, it meant it had gained a remarkable 328% since the start of the year.
Why is the Talga Resources share price at a record high?
Investors have been fighting to get hold of the company’s shares this month following a couple of promising announcements.
The first came on 2 November when the company announced that it had entered into a non-binding tripartite letter of intent with international high-tech mining and minerals group Luossavaara-Kiirunavaraa Aktiebolag and Mitsui & Co. Europe.
The three parties are discussing the joint development of the Vittangi Anode Project in Sweden. This project is part of its plan to establish a European supply of sustainable, low-CO2 emission anode materials for lithium-ion batteries.
Two days later the company revealed that it has received a commitment for grant funding under the UK Government’s Automotive Transformation Fund to complete a preliminary feasibility study into the commercialisation of its silicon anode product in the UK.
Talga has been developing its silicon anode lithium-ion battery product, Talnode-Si, both at its battery materials centre in Cambridge, UK, and under the now concluded Faraday SAFEVOLT program.
It notes that this work demonstrated a promising commercial route to produce higher-energy density anodes for Li-ion batteries, with the potential to significantly increase the driving range of electric vehicles.
Talga’s Managing Director, Mark Thompson, commented: “With a large automotive industry employing nearly 800,000 people and a rich history of iconic manufacturers such as Jaguar-Land Rover, Rolls-Royce, Bentley, Aston Martin, McLaren and many more, we see significant growth opportunities in the UK’s electrification process causing increased demand for our battery materials.”
“Our Cambridge-based battery material and technology facility has and continues to receive excellent support from Government agencies committed to a sustainable UK automotive industry,” he added.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.