Alkemy, the company behind Tees Valley Lithium (TVL), has announced that it is making substantial progress in securing up to $25 million (£19.5 million) in funding for its Wilton refinery project. The company, listed on the London Stock Exchange, disclosed that it is in active discussions with several potential financiers and has already shortlisted key candidates for what it considers a crucial funding phase.
TVL intends to cover the $300 million (£235 million) cost of Train 1 at the Wilton refinery through a mix of green bonds, debt, strategic equity, and grants. The initial round of mezzanine funding will be used to finalise the front-end engineering design and to begin purchasing essential equipment for the refinery.
The planned lithium refinery in Teesside is projected to produce enough lithium hydroxide to meet 100 per cent of the anticipated demand from the UK automotive sector by 2030. In addition to satisfying domestic needs, 35 per cent of the refinery’s production is expected to be available for export to other European countries and beyond.
In parallel with its funding efforts, TVL is negotiating with a prominent lithium refining technology firm to enhance Train 1 and subsequent production phases. This collaboration is expected to reduce both capital and operational costs while refining TVL’s electrochemical process. The company is working towards finalising commercial terms and signing a binding term sheet, with further updates to be provided in due course.
Paul Atherley, Chairman of Alkemy, expressed optimism about the ongoing developments, particularly the growing interest in Tees Valley Lithium from potential UK customers. He highlighted the promising potential of the technology partnership, which could lead to significant cost reductions. Atherley emphasised that the primary focus remains on advancing the mezzanine financing, which is progressing well.
Alkemy also noted that the battery materials market is thriving, driven by the increasing demand for electric vehicles and renewable energy storage. This market strength is helping to mitigate the impact of recent declines in lithium prices, which fell to a 35-month low in the second quarter of 2024 due to oversupply and weaker-than-expected electric vehicle sales in Europe.
Alkemy Capital Investments plc (LON:ALK) is focussed on developing projects in the energy transition metals sector. Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK. Tees Valley Graphite is developing the UK’s first natural graphite active anode material processing facility at the ‘plug-and-play’ Wilton International Chemicals Park.
