‘Flagship’ Teesside lithium refinery secures backing

A planned Teesside lithium refinery has moved a step closer after securing an offer of up to £18.3 million in Government funding.

Tees Valley Lithium (TVL), which is wholly owned by Alkemy Capital Investments plc, has received the offer in principle through the Government’s DRIVE35 Automotive Transformation Fund to support the £185 million first phase of its refinery at Billingham Chemical Complex.

Subject to final approvals, the facility will convert lithium from domestic and international sources into battery-grade lithium hydroxide for use by the electric vehicle battery industry.

The first phase is expected to produce 25,000 tonnes annually, which TVL says would be enough to support production of more than 550,000 electric vehicles.

Longer-term plans could see capacity increase to more than 100,000 tonnes a year.

Officials say the project could contribute more than £2.1 billion to the UK economy over 25 years, including around £1 billion in the Tees Valley, while supporting more than 1700 jobs across construction, operations and the supply chain.

The company has already secured an offtake agreement with Glencore, process technology from Veolia and a feedstock agreement with Wogen Resources.

Vikki Jeckell, chief executive of Tees Valley Lithium, speaking from the Fastmarkets European Battery Raw Materials conference in Budapest, said: “This grant is a statement of confidence in Teesside, and it is a confidence we share with partners around the world, among them Glencore and Veolia, who have already committed to what we are building here.

“The Critical Minerals Strategy set Britain the task of creating domestic lithium refining capacity, and TVL exists to deliver it: Phase 1 alone represents nearly half of the 2035 target.

“This morning, I have the privilege of telling the whole European industry that Britain backs its midstream.”

Paul Atherley, chairman of Alkemy Capital Investments plc, added: “We are very grateful to BIST and the Advanced Propulsion Centre for their support for the establishment of the UK’s flagship lithium refinery in Teesside.

“Located in the heart of Teesside’s port and industrial cluster and drawing on the region’s extensive chemical engineering heritage, this future-facing refinery will be one of the largest in Europe and will position the UK at the forefront of the biggest energy transition in history.”

TVL will now work with the Government and Advanced Propulsion Centre UK to complete the remaining due diligence and conditions attached to the funding.

Blair McDougall, minister for reindustrialisation, added: “This is a really encouraging milestone for Tees Valley Lithium and proves what's possible with this kind of British innovation and expertise.

“It shows the vast potential for refining and using critical minerals here in Britain to back our zero-emission vehicle manufacturing for the future.

“Teesside has a proud industrial heritage, and companies like Tees Valley Lithium are helping write its next chapter.”

Chris McDonald, MP for Stockton North, said: “This is a huge vote of confidence in Billingham, Teesside and Britain’s industrial future.

“I have supported the Tees Valley Lithium project since becoming MP and worked closely with the team as they have developed plans for what will be a major new lithium refining facility here in Billingham.”

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