While I completely agree the market is waiting for the JV and...

While I completely agree the market is waiting for the JV and drilling results, I think the significance of yesterdays MoU has been overlooked based on the commentary here.

LT Tech are a battery anode subsidiary of Foxcon and the chair of the board is a Foxconn executive. Foxconn are #22 on the Fortune 500 and are the world's largest provider of electronics manufacturing services and the fourth-largest technology company by revenue (USD $193 billion in 2020).

They are aggresively moving into the EV space with plans to turn EVs into a $35bn business and have some strong partnerships:
- Planning to build an electric vehicle factory in Europe to supply German auto companies by 2024, with further plans to expand to North America and India

- Just released three EVs which will be sold under other car brands. Foxconn will license the vehicle design and build the cars for the company, in the same way it builds electronic devices under contract for major tech companies such as Apple
- JV with Geely (owner of Volvo Cars and Polestar) to provide contract manufacturing for automakers
- JV with LT Tech (and now Talga) to develop anode materials for lithium iron phosphate batteries
- JV with Fisker to develop electric vehicles
- Partnership and US $1.4 billion investment in CATL

While the MoU is non binding it follows "successful initial tests of Talga’s natural graphite Talnode®-C product and LT Tech’s synthetic battery anode products, and contains the criteria for scaled up supply and evaluation of joint anode materials and blends."

"LT Tech and Talga wish to enter an Anode Testing Contract to secure increasing volumes of materials for larger cell trials and to complete qualification programs with agreed customers."

This sounds pretty promising to me and as close to an offtake as we have seen. It sounds as if Foxconn and LT Tech are just awaiting commercial qualification from the EVA before moving to a binding supply agreement.

This shows the significance of Talga's product with customers ready to buy, it also sends a message to other potential customers that they better make a move otherwise they risk their own supply from Talga. Demand will outstrip supply for anode and as Zoulou mentioned, it is a game of musical chairs with the battery manufacturers and the question is will there be enough chairs for all...unlikely