Alkemy Capital Investments PLC reported on Monday that discussions regarding financing and partnerships for its lithium projects are progressing well. The London-based investment company specialises in the critical minerals sector. Chair Paul Atherley highlighted the promising developments across various fronts, particularly noting the increasing interest in Tees Valley Lithium Ltd from potential UK customers. Atherley expressed excitement about a potential technology partnership that could reduce both capital and operating costs. The primary focus remains on advancing mezzanine financing, which is moving forward significantly.
Alkemy is engaged in talks with financial institutions about project-level financing for a refinery owned by its subsidiary, Tees Valley Lithium. Multiple potential lenders have been shortlisted, with the estimated $300 million capital cost expected to be funded mainly through green bonds, complemented by a mix of debt, grants, and equity finance.
In collaboration with Weardale Lithium Ltd, TVL is actively pursuing ways to enhance the UK lithium supply chain through innovative R&D. TVL is progressing on a government-awarded R&D grant to evaluate the lithium chloride and carbonate markets and advance processing technologies. Discussions are also underway with a lithium refining technology company to accelerate the electrochemical process and reduce both capital and operating expenses.
A new partnership with Geothermal Engineering Ltd, a Cornwall-based lithium resource owner, will explore ways to advance both companies’ lithium projects through information exchange and the potential development of integrated supply chains within the UK.
The battery materials market is showing promising growth, driven by the increasing adoption of electric vehicles and renewable energy storage solutions. Despite recent price fluctuations and supply chain disruptions, the long-term outlook remains positive. TVL’s lithium refinery in Teesside is expected to produce enough lithium hydroxide to meet 100% of the forecasted automotive demand in the UK by 2030, with an additional 35% of its production available for export to Europe and beyond.
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.
