TIDMALK
RNS Number : 4488J
Alkemy Capital Investments PLC
27 April 2022
27 April 2022
Alkemy Capital Investments Plc
Tees Valley Lithium announces plans to establish world class
Lithium Hydroxide production at Wilton International Chemical Park,
UK
Alkemy Capital Investments plc ("Alkemy") is pleased to announce
the completion of a Feasibility Study for a world class lithium
hydroxide processing facility at the Wilton International Chemical
Park located in the Teesside Freeport, UK.
Alkemy, through its wholly owned subsidiary Tees Valley Lithium,
is seeking to develop an independent and sustainable supply of
lithium hydroxide to meet the burgeoning demand from UK and
European giga factories.
The facility will process feedstock imported from various
sources to produce 96,000 tonnes of a premium, low-carbon lithium
hydroxide annually, representing around 15% of Europe's projected
demand.
The proposed facility is located at the "plug and play" Wilton
International Chemical Park located in the Teesside Freeport with
connections to low carbon offshore wind and 100% certified
renewable energy.
The project is the first of its kind in the UK, the biggest in
Europe and will when completed be a key supplier to UK and European
giga factories, electrical vehicle and battery storage
industries.
The study has been prepared by Wave International, a leading
engineering consultancy firm with significant experience in
developing lithium hydroxide projects worldwide.
HIGHLIGHTS:
-- 96,000 tonnes annual production of battery grade lithium
hydroxide representing approximately 15% of projected UK and EU
demand;
-- Plant has been designed to process a range of imported
low-carbon, high value feed sources including lithium sulphate and
lithium carbonate;
-- Pre-tax net present value (NPV) of GBP2.8 (US$3.9) billion
based on long-term lithium hydroxide price of US$25,000 per
tonne;
-- Initial capital cost of GBP216 (US$300) million;
-- Gross revenues of GBP49.2 (US$68.4) billion;
-- Internal rate of return (IRR) of 35.6%;
-- Significant potential to capture by-product value streams.
The results of the Feasibility Study demonstrate the viability
of developing a robust battery-grade lithium hydroxide project with
low capital and processing costs, a low carbon footprint, strong
cash flow generation capacity and significant upside potential by
capturing by-product credits.
The Feasibility Study has evaluated the project economics using
the following assumptions:
-- A merchant lithium hydroxide plant comprising four trains
each with a 24,000tpa capacity, to produce up to 96,000tpa of
battery-grade lithium hydroxide.
-- Train 1 will follow the conventional Glauber's Salt process
route with trains 2 to 4 following an Electrochemical route.
-- Purpose built facility to be constructed on a 9.6 ha plot at
the Wilton International Chemical Park in the Teesside
Freeport.
-- Plug and play infrastructure with a connection to reliable
and cheap offshore wind and 100% certified renewable energy.
-- Production of a premium, low carbon product for sale to Tier
1 customers in the UK and Europe.
The Feasibility Study identifies target production over a
30-year life to be the most appropriate option. The preliminary
economics of the project are set out below:
Table 1 - Project Economics
Tees Valley Lithium - Economic Summary Unit Value
Life of Project Years 30
----- ---------
Lithium Hydroxide Sold MT 2.7
----- ---------
Gross Revenue GBP 49.2bn
----- ---------
Initial Capital Cost Train 1 (including a 17.5% Contingency) GBP 216M
----- ---------
Life of Project Capital Cost (including initial capital) GBP 1.49bn
----- ---------
Taxes GBP 2.2bn
----- ---------
NPV and IRR
----- ---------
Discount Rate % 8
----- ---------
Pre-Tax NPV GBP 2.8bn
----- ---------
Pre-Tax IRR % 35.6
----- ---------
Pre-Tax Payback Period (Train 1) Years 2.9 years
----- ---------
After-Tax NPV GBP 2.2bn
------------------------------------------------------------- ----- ---------
After-Tax IRR % 32.9
----- ---------
Peak Funding Requirement GBP 336
----- ---------
EBITDA Margin % 26%
----- ---------
Notes:
-The model uses a long-term lithium sulphate price of
US$10,000/t and a long-term lithium hydroxide price of
$25,000/t
-Peak funding for Train 1 is GBP218m
-Long term GBP/US$ exchange rate is 1.39
Sam Quinn, Director of Alkemy and Tees Valley Lithium,
commented:
"This Feasibility Study is a major milestone for Alkemy and its
100% owned subsidiary Tees Valley Lithium. We are moving quickly to
establish a major independent and sustainable lithium hydroxide
producer at the Wilton International Chemical Park in the Teesside
Freeport and are pleased with the validation that this independent
feasibility study brings to our project.
At full production, Tees Valley Lithium will produce 96,000
tonnes of battery-grade lithium hydroxide per annum and will be a
major supplier to the UK and European electric vehicle
industry."
APPIX - CLASS 4 FEASIBILITY STUDY SUMMARY
PROJECT BACKGROUND
Tees Valley Lithium's strategy is to become a leading producer
of lithium products, and a key supplier to the battery supply chain
for the expanding electric vehicle ("EV") and stationary energy
storage markets.
A merchant Lithium Hydroxide Monohydrate (" LHM") plant
consisting of four trains is proposed to be developed at Teesside
with the following key advantages:
-- Direct access to cheap, renewable (wind) power and certified renewable electricity;
-- Location within a Freeport zone providing economic benefits and frictionless trade;
-- Location close to the fifth biggest port in the UK for the
import of raw materials and export of products;
-- Location within an established industrial chemicals park, with "plug and play" services and infrastructure;
-- Proximity to the UK and EU's Cathode Active Material and automotive industry;
-- Experienced management team specialising in mining, mineral
processing, lithium hydroxide projects and battery supply
chain;
-- Pioneering the world's first successful low-carbon
electrochemical route by partnering with global expertise and
generating proven lab results.
Train 1 is anticipated to have a production capacity of 24,000
tpa LHM and will be designed to process Lithium Sulphate
Monohydrate ("LSM") and lithium carbonate from multiple sources
with initial supply via third party feedstock contracts.
Train 1 will be based on a conventional Glauber's Salt
processing route, producing LHM and Anhydrous Sodium Sulphate. This
process is currently utilised extensively in LHM production in
China and Australia.
Trains 2 to 4 are anticipated to have a combined production
capacity of 72,000 tpa LHM and will also be designed to process LSM
and lithium carbonate from multiple sources. Train 2 will likely be
based on the Electrochemical processing route, producing LHM and a
dilute Sulphuric Acid stream (which in turn will be converted into
a saleable by- product).
Tees Valley Lithium ("TVL") has developed its own IP on the
Electrochemical processing route, which utilises equipment
available from reputable, global vendors who have completed
extensive testwork on lithium extraction. The Electrochemical route
is ideally suited to sites with low cost, renewable power
sources.
The target product will be Battery Grade LHM meeting the
specifications of tier 1 European automotive Original Equipment
Manufacturers, TVL's target customers. With the EV ambitions of its
customers in mind, TVL aims to be an early full-scale manufacturer
of Battery grade LHM in the UK and Europe.
A key strategic consideration for the plant design is the
ability to process multiple sources of LSM, including LSM derived
from spodumene, mica, brine and recycling of used batteries as well
as lithium carbonate. The test work undertaken to date, along with
resulting engineering development, has considered variability of
both LSM and lithium carbonate sources.
To achieve its strategic goals, TVL has aligned with a key
strategic shareholder base as well as appointing a highly
experienced management team with experience in the chemicals and
lithium sectors.
METALLURGICAL TESTWORK
To date, a considerable amount of metallurgical test-work has
been carried out by a number of leading laboratories in the field
of lithium and speciality minerals processing and treatment.
The test-work has formed the basis for the process flowsheet in
the Feasibility Study. The metallurgical test work yielded an
ultra-pure battery grade lithium hydroxide, exceeding the
industry-recognised Chinese standard GB/T 26008-2020 D1.
The studies and laboratories are listed below.
Table 2 - Testwork Programmes
TESTWORK PROGRAM LABORATORY SCOPE STATUS
Impurity removal Nagrom laboratories, Impurity removal from Varying reagent
Australia assumed LSM feedstock, regimes being
to achieve purified trialled examining
LS solution requirements impact on
for both Electrochemical liquor purity.
and Glauber's Salt Program ongoing.
routes.
--------------------- ------------------------------ --------------------
Glauber's Salt Jord Proxa, Production of battery Complete.
crystallisation South Africa grade LHM from synthetic
purified LS solution,
including Zero Liquid
Discharge.
Confirm flowsheet for
crystallisation circuit.
--------------------- ------------------------------ --------------------
Electrochemical Electrosynthesis, Bench scale proof of Complete.
bench scale United States concept of Electrochemica
l route from synthetic
purified LS solution.
Initial process optimisation
work, assessment of
different membranes
suppliers.
--------------------- ------------------------------ --------------------
Electrochemical Dorfner Anzaplan, Bench scale proof of Complete.
bench scale Germany concept of Electrochemical
route from synthetic
purified LS solution.
Desktop study into
impact of impurities
from different feed
sources.
Production of crude
LHM.
--------------------- ------------------------------ --------------------
The process route for each process route is set out in the
Figure 1, along with the scope of each programme. It is noted that
Anzaplan's scope included a single stage crystallisation only to a
crude LHM and that Electrosynthesis did not perform LHM
crystallisation.
Figure 1 - Proposed flowsheet (left Glauber's Salt route, right
Electrochemical route) To view the image, please click on the
following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_1_.jpg
Results - Impurity Removal Programme at Nagrom
The impurity removal programme was designed to produce a
purified lithium sulphate liquor from a low-grade lithium sulphate
input, to levels acceptable to both the Glauber's Salt and
Electrochemical process routes. It is noted that the purity
requirements differ between the two routes.
The flowsheet is based on process widely used commercially in
industry, and as such the ongoing testwork is focused on examining
varying reagent regimes and the impact on liquor purity ahead of
either downstream process (Glauber's Salt or Electrochemical). The
regimes and specific results are considered confidential, and this
testwork is ongoing.
Results - Glauber's Salt crystallisation work at JordProxa
The crystallisation testwork programme was designed to prove the
causticisation and crystallisation process to a final ultra-pure
LHM project. This involved causticisation, Glauber's Salt
crystallisation, and three stage lithium hydroxide
crystallisation.
After three stages of crystallisation, an ultra-pure battery
grade LHM product was produced, exceeding the Chinese Standard GB/T
26008-2020 D1 as well as TVL's target specification. TVL considers
the actual values confidential at this stage, but all analyte
requirements were exceeded easily, demonstrating the premium
product to be produced by TVL.
Figure 2 - Crystallisation testwork at JordProxa. Top left:
glass jar crystallisers. Top right: crystallisers. Bottom left:
centrifuge. Bottom right: LHM crystals. To view the image, please
click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_2.jpg
The Zero Liquid Discharge testwork was also completed, providing
relevant process parameters for equipment sizing which has been
used in the capital cost estimates.
Results - Electrochemical Testwork at Anzaplan
The Anzaplan testwork programme was design to examine two
different electrochemical cell configurations, and to produce a
crude LHM product through single stage crystallisation. The
testwork reported specific energy consumption and current
efficiency for the two configurations, as well as impurity profiles
for crude LHM. The details of the configurations and outputs are
considered confidential.
The results from Anzaplan provide excellent justification for
the proposed Electrochemical flowsheet, proving that key purity and
a number of impurity targets can be met with only a single stage
crystallisation. Future testwork will combine the results from both
Anzaplan and Electrosynthesis (see below) into an optimised
Electrochemical cell configuration, taken all the way through to
final ultra-pure battery grade LHM.
Results - Electrochemical Testwork at Electrosynthesis
The Electrosynthesis testwork programme was designed to test
various process parameters against cell performance, and also to
evaluate two different commercially available membrane
technologies.
The process parameters and membrane details are considered
confidential, but included acid and base concentrations, lithium
sulphate concentration, cell configuration and batch vs. continuous
operation. Specific energy consumption, production rate, base
impurity and acid impurity were included in reported details.
Approximately 3kg of LHM equivalent was produced in product
liquor, which is available for future crystallisation testwork
along with dilute acid which is available for future valorisation
testwork.
ENGINEERING
Process Description - Glauber's Salt Route
The LSM feedstock is received and dissolved in water. The crude
lithium sulphate solution is transferred to impurity removal.
Impurity removal consists of two stages, where caustic and
sodium carbonate solution are respectively added as pH modifiers to
precipitate out key impurities of calcium, magnesium, iron, and
aluminium by forming insoluble hydroxides. Precipitates are removed
via filtration, prior to a final impurity removal stage using ion
exchange.
The purified LSM solution is transferred to ion exchange
columns, which facilitate the removal of the remaining impurities
from the liquor by adsorption onto the ion exchange resin. The
purified pregnant liquor solution from the IX package is sent to
the causticisation stage.
The purified liquor is pumped to the Lithium Hydroxide reactor
where caustic is added to convert Li SO to LiOH and Na(2) SO(4) .
Glauber's Salt is removed from the solution by exploiting its poor
solubility in water at low temperatures and transferred to the
sodium sulphate anhydrous crystallization circuit.
The LHM product circuit is a three-stage Lithium crystallization
circuit where the first stage is crude stage crystallization, the
second is pure stage crystallization and the third is ultra-pure
stage crystallization. The wet precipitated crystals from the third
stage are then transported into the LHM drying stage with the
cooled and dried LHM product bagged and dispatched to
customers.
The Glauber Salt crystals that were removed report to the
Glauber Salt Melter, which dissolves the Glauber Salt crystals back
into the recirculating solution. This liquor is pumped to the
Sodium Sulphate Anhydrous (SSA) Crystallizer, which precipitates
out anhydrous Na2SO4 (or SSA) crystals. The SSA crystals are
transferred to the SSA Dryer to remove all moisture and generate
the final SSA product. The SSA product is then bagged and
dispatched to customers.
A Zero Liquid Discharge system is incorporated to capture water
excess and return it to the processes (resulting in zero
environmental liquid discharge).
Electrochemical Route
The LSM feedstock is received and dissolved in Calcium rich
water. The Crude Lithium Sulphate solution is transferred to
impurity removal.
Impurity removal consists of two stages, where a mixture of
NaOH, LiOH and Na2SO4 and a mixture of NaOH, LiOH, Na2SO4 and
lithium carbonate solutions are respectively added as pH modifiers
to precipitate out key impurities of Magnesium, Manganese, Iron,
and Aluminium into insoluble hydroxides and silicates as Magnesium
or Calcium silicates.
Precipitates are removed via filtration, prior to a final
impurity removal stage using ion exchange. Target impurity levels
for the Electrochemical route are different to the Glauber's Salt
route, and the specifics of the process are modified for this
route.
The purified LSM solution is prepared prior to ion exchange,
which facilitate the removal of the remaining impurities from the
liquor by adsorption onto the ion exchange resin.
The polished Lithium Sulphate solution from IX is mixed prepared
and pH adjusted ahead of the Electrochemical cell feed. This
solution is then pumped to the Electrochemical cells, whereupon
with the application of an electric current, lithium sulphate is
converted to
lithium hydroxide which is transferred to Lithium Hydroxide
Evaporation, Salt which is transferred to Salt Concentration, and
Sulphuric Acid.
The Lithium Hydroxide is evaporated to increase the overall
concentration of the solution. The concentrated LiOH is pumped to
Crude Crystallization, where it exploits the saturated solubility
of LiOH in the water against that of the remaining impurities.
The LiOH crystallizes out of the solution, forming LiOH crystals
that can be removed and
reprocessed through an additional crystallization stage until
the desired grade specifications are achieved. The wet precipitated
crystals from the second stage are then transported into LHM Drying
where the cooled and dried lithium hydroxide product will be bagged
and dispatched to customers.
The dilute Sulphuric Acid produced by the Electrochemical
process is converted into Gypsum using Limestone or quick lime. The
precipitated slurry is then transferred to Gypsum Filtration. The
washed cake discharge from filtration is transported onto a
stockpile where it is ready for transport off-site and sale to the
market.
Engineering Development
The engineering has been developed to a sufficient level to
support the Feasibility Study economics which includes:
1. Block flow diagrams
2. Preliminary Process flow diagrams
3. Preliminary mass and water balance
4. Preliminary mechanical equipment list
5. Preliminary layouts
These deliverables were completed for each process route, based
on Wave International's experience and the outcomes of the
metallurgical testwork.
The figure below provides for a representation of the proposed
facility location on TVL's selected site at Wilton
International.
Figure 3 - image of the proposed processing facility. To view
the image, please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_3.jpg
LOCATION
The location of the process facility is strategically proposed
in the Teesside Freeport, in close proximity to TVL's customers and
to provide for fast development and efficient operations leveraging
the established "plug and play" infrastructure at Wilton
International.
The process plant benefits from excellent transport links as it
is located adjacent to the UK's fifth largest port, enabling ease
of supply as well as providing direct access to the European Market
which is of particular interest due to the size and growth rate of
the EV market. TVL has been in discussions with local transport
logistics companies for the LSM feedstock and LHM offtake.
The local skilled workforce both in the engineering and chemical
processing domains are further upsides of this location as well as
the proximity to potential future lithium mines currently under
assessment in Europe.
NON-PROCESS INFRASTRUCTURE
During the process of site selection, the non-process related
infrastructure has been evaluated for the project. This includes
the facilities, and logistics requirements for material movements.
The non process related infrastructure includes the following:
1. Site access and security
2. Potable and demineralised water
3. Steam
4. Power
5. Medical Facilities
6. Fire services
The site is adjacent to PD Ports, the 5(th) largest container
port in the UK. PD Ports boasts large scale Roll-On-Roll-Off and
Lift-On-Lift-Off container handling facilities, as well as bulk
materials handling capability.
TVL's logistics requirements can be easily met by existing port
capacity and TVL will not need to handle any bulk materials (and
hence avoids issues associated with dust management of
concentrates, as well as reduced carbon footprint from large volume
international logistics).
ENVIRONMENT, PERMITTING AND APPROVALS
The Company anticipates receiving planning approval in July
2022. The table below list the submission dates.
Table 3 - Environmental Impact Assessment Milestones
Heads of agreement for lease COMPLETE March
EIA Scoping Study COMPLETE March
--------- ------
Submission for Council Opinion COMPLETE April
--------- ------
Planning Application Preparation ON TRACK May
--------- ------
Submission final EIA ON TRACK June
--------- ------
Due Date for Planning Approval ON TRACK July
--------- ------
OPERATING COSTS
An operating cost estimate has been prepared for the individual
Glauber's Salt and Electrochemical routes, both of which have a
nameplate capacity of 24,000 tpa of LHM per train.
The operating cost estimate was developed as a bottom-up
estimate with key values taken from the Feasibility Study's
economic evaluation report, namely the process design criteria,
mass and water balance, and the mechanical equipment list.
All significant and measurable items have been calculated;
however, smaller items are factored as per industry practice. The
level of effort for each of the line items meets the requirements
for a Class 4 Feasibility Study estimate.
CAPITAL COST
Based on the engineering development and operational management
work progressed, a Capital Cost Estimate has been prepared for the
Glauber's Salt and Electrochemical routes.
The Capital Cost Estimate was developed to meet the requirements
of a Class 4 estimate as defined by the American Association of
Cost Engineers' Cost Estimation and Classification System (as
applied for mining and minerals processing industries) and
represents a nominal accuracy range of +/-25%, with a contingency
of 17.5%. All cost data is in GBP (GBP).
The Capital Cost Estimate presents the capital requirements to
engineer, procure, construct and commission TVL as defined with a
throughput of 24,000 tpa. The Capital Cost Estimate covers project
implementation costs for the period between Financial Investment
Decision and commissioning completion. It also includes long-lead
items brought forward from Financial Investment Decision.
The following table provides a summary of capital costs for the
Glauber's Salt and Electrochemical routes.
Table 4 - Capital Cost (in GBP)
Capital Costs (in GBP) Glauber's Salt Electrochemical
Route Route
Installation 15,680,643 20,861,939
---------------------------- ----------------
Earthworks 1,960,080 1,960,080
---------------------------- ----------------
Civil/concrete 5,880,241 7,823,227
---------------------------- ----------------
Structural 9,800,402 13,038,712
---------------------------- ----------------
Architectural 9,800,402 9,800,402
---------------------------- ----------------
Mechanical/Platework 47,041,929 62,585,816
---------------------------- ----------------
Piping & Valves 9,800,402 13,038,712
---------------------------- ----------------
Electrical 9,800,402 13,038,712
---------------------------- ----------------
Controls & Instrumentation 7,840,322 10,430,969
---------------------------- ----------------
Total Direct Cost 117,604,823 152,578,569
---------------------------- ----------------
Indirect Cost 66,485,927 86,465,003
---------------------------- ----------------
Sub-total 184,090,750 239,043,572
---------------------------- ----------------
Contingency (17.5%) 32,215,881 41,832,625
---------------------------- ----------------
Total Capital Cost 216,306,631 280,876,198
---------------------------- ----------------
SUSTAINING CAPITAL
Sustaining capital of 2% of direct capital costs (excluding
earthworks) has been included in the financial model for the first
25 years, increasing to 3% for the last 5 years.
PRE-FINANCING ANALYSIS
The project has been evaluated on both a pre-tax basis and after
UK taxes. Modelling incorporates fiscal aspects of the UK tax law,
including a 19% UK corporate tax rate.
The financial model was developed for a Base Case scenario using
a long-term LSM price forecast of US$10,000/t and long-term LHM
price of US$25,000t.
WORKFORCE
At a steady state of production the Company anticipates to
employ up to 100 people per train totaling 400 people for the plant
at its design rate.
During the construction phase it is anticipated that around 250
direct jobs will be created for train 1 alone.
UPSIDE OPPORTUNITES
The Feasibility Study has also identified a number of
opportunities to further improve the project and a work programme
is planned to investigate these opportunities. In additional to
TVL's ultra-pure LHM product, the project will produce two
additional non lithium products:
1. Anhydrous Sodium Sulphate from the Glauber's Salt route.
2. Gypsum from the Electrochemical route.
An existing market exists for Anhydrous Sodium Sulphate within
Europe, and as a first mover TVL expects to place this material
from train 1 into existing markets.
For train 2, gypsum is proposed to be produced as it is noted
the region is a net importer of gypsum. It is anticipated that this
product can be sold locally.
Zero revenue has been attributed to these products in the
economics.
FEEDSTOCK
The plant is set up to accommodate multiple feed sources of
lithium sulphate and lithium carbonate to maximise the number of
potential suppliers. This diversity will provide flexibility of
supply and de-risks the project.
TVL is in advanced discussion with a number of feedstock
suppliers including some of the world's largest groups and is
confident to be able to secure sufficient LSM for all 4 trains.
The Feasibility Study will be utilised for completion of due
diligence activities with various suppliers as a planned next step
to finalising binding offtake.
CLIENTS
TVL is also in discussions for long-term supply agreements with
Original Equipment Manufacturers and battery manufacturers and is
confident that it will secure customers for 100% of its
production.
TIMELINE
TVL anticipates first production during Q4 2024. Figure 4 lists
the various milestones including:
-- Permitting - Q2 to Q3 2022
-- Long lead time procurement - Q3 2022 to Q2 2023
-- Financing - Q4 2022
-- Main Construction, subject to financing - Q4 2022 to Q4 2023.
-- Commercial production - Q4 2024
Figure 4 - Timeline of the development Milestones To view the
image, please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_4.jpg
EV REVOLUTION
The UK / EU have announced a ban on petrol and diesel car
production from 2030 onwards. This means that the automotive
industry are obligated to switch to EVs. A typical NMC EV battery
requires approximately 1.15kg of lithium hydroxide per kWhr of
energy storage. Typically NMC EV's have 40kWhr batteries.
The UK is forecast to produce 1.5M EVs in 2030, with the EU
producing a further 15M. This implies a UK market of approximately
43kt and a European market of 434kt of lithium hydroxide. Consumer
sentiment driven by concern over climate change and more recently
high petrol prices, has shown a very aggressive adoption rate for
EV's with most manufacturers quoting 9 to 12 month lead times.
These two points are what is driving the EV revolution.
By 2027 it is forecast that an EV will cost less than an
internal combustion engine vehicle, so with energy costs of EV's at
1/10 of an internal combustion engine, it will be an overwhelming
economic choice to buy and EV, ensuring the complete transition to
EV's by 2030.
The rapid changes in consumer demand is attracting significant
investment in battery cell manufacturing. The figure below provides
an estimate of battery manufacturing capacity globally between 2021
and 2031.
Figure 5 - Battery manufacturing forecast (source: Benchmark
Minerals Intelligence, Battery Gigafactories 2021) To view the
image, please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_5_.jpg
The mid and upstream supply chains to support this capacity
however, is considered constrained within the UK / EU region with
respect of access to raw materials, access to mid-stream refining
and rising cost pressures. In addition, there is tight supply of
primary lithium units from brine, hard rock (and other minerals)
and recycled lithium is not yet available in material quantities.
The figure below provides a LHM market balance forecast to
2040.
Figure 6 - LHM market balance forecasts (source: Benchmark
Minerals Intelligence, Wave International) To view the image,
please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_6_.jpg
Whilst hard rock primary lithium supply is proving to be a
dominant source of lithium units for LHM, key challenges present
themselves within the supply chain.
Further information
For further information, please visit the Company's website:
www.alkemycapital.co.uk or www.teesvalleylithium.co.uk
-Ends-
Alkemy Capital Investments Plc Tel: 0207 317 0636
Sam Quinn info@alkemycapital.co.uk
VSA Capital Limited Tel: 0203 005 5000
Andrew Monk (corporate broking) amonk@vsacapital.com
Andrew Raca (corporate finance) araca@vsacapital.com
Shard Capital Partners LLP
Damon Heath Tel: 0207 186 9952
damon.heath@shardcapital.com
Isabella Pierre Tel: 0207 186 9927
isabella.pierre@shardcapital.com
NOTES TO EDITORS
Alkemy is seeking to develop, construct and operate the world's
leading independent and sustainable lithium hydroxide production
facility.
Alkemy, through its wholly-owned subsidiary Tees Valley Lithium,
has secured a 9.6ha brownfields site at the Wilton International
Chemical Park located in Teesside, a major UK Freeport.
Alkemy has completed a Class 4 Feasibility Study for its
proposed lithium hydroxide facility which will process feedstock
imported from various sources to produce 96,000 tonnes of a
premium, low-carbon lithium hydroxide annually, representing around
15% of Europe's projected demand.
Forward Looking Statements
This news release contains forward--looking information. The
statements are based on reasonable assumptions and expectations of
management and Alkemy provides no assurance that actual events will
meet management's expectations. In certain cases, forward--looking
information may be identified by such terms as "anticipates",
"believes", "could", "estimates", "expects", "may", "shall",
"will", or "would". Although Alkemy believes the expectations
expressed in such forward--looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Alkemy will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the
forward--looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
forward-looking information.
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END
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(END) Dow Jones Newswires
April 27, 2022 02:01 ET (06:01 GMT)
Alkemy Capital Investments (LSE:ALK)
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Alkemy Capital Investments (LSE:ALK)
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