Couple thoughts on this:Note the off-take is for active anode...

Couple thoughts on this:

• Note the off-take is for active anode material, which is why Syrah doesn't need to be qualified first. This product will sell at lower margins than a final anode product (like TLG or NMG) but should still be very profitable.

• If Tesla is signing off take for concentrate, it means they're getting into the anode refinement business (spheriodization and coating). This isn't all that surprising given they're also getting into the lithium refining space.

• The fact that Tesla is getting into refining is not a threat to Talga. First, Tesla currently produces their own cells and purchases cells from other companies (e.g. CATL), so there's no reason to believe they won't do the same with lithium/graphite. Second, the pending graphite shortage likely means Tesla won't be able to make enough anode even if they wanted to. Third, all of the other battery manufacturers (which is the majority of the market) will still be 100% reliant on end anode producers. Fourth, Vittangi provides a superior base material - meaning even Tesla will not be able to beat Talga on quality or cost.