Talga Group (ASX:TLG) said its Swedish subsidiary Talga AB entered a non-binding memorandum of understanding with Finland-based battery recycler Fortum Battery Recycling to explore opportunities across the European graphite and battery materials value chain, according to a Monday filing with the Australian bourse.

The companies will evaluate multiple potential work streams, including the supply of graphite recovered by Fortum for refining into battery anode materials by Talga, and the joint development of blended or optimized anode materials that combine primary and recycled graphite streams.

They will also assess technical feasibility, commercial structures, and potential long-term offtake agreements under the memorandum of understanding, which targets a commercial start from 2029 and carries a long-stop date of Dec. 31, 2033.

Additionally, the companies are discussing power supply to support Talga's Vittangi anode project in Sweden by leveraging Fortum's low-carbon electricity generation portfolio.

Talga Group shares fell 2% in recent Monday trade.