TIDMALK
RNS Number : 2117T
Alkemy Capital Investments PLC
21 July 2022
21 July 2022
Alkemy Capital Investments Plc
Leading global metals trader Traxys to source lithium feedstock
for Tees Valley Lithium
Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) and its
wholly-owned subsidiary Tees Valley Lithium Ltd (" TVL ") are
pleased to announce that TVL has entered into a Memorandum of
Understanding with leading global physical trader and merchant in
metals and natural resources, Traxys North America LLC, a member of
the Traxys Group of companies (" Traxys ").
HIGHLIGHTS
-- Traxys has agreed to source and supply lithium feedstock for
TVL's planned processing facility in Teesside, UK
-- Traxys is a leading global metals trader with expertise in
the lithium and battery metals sectors, with annual turnover in
excess of USD 8 billion
-- Lithium feedstock to initially supply Train 1 of TVL's
facility, producing 24,000tpa of battery-grade lithium hydroxide,
with production due to commence in 2024
-- Traxys and TVL will also work together to gain efficient raw
material validation and approval for the automotive supply
chain
Traxys' Managing Director for Lithium Supply, Kevin Smith,
commented:
"Traxys is pleased to enter into this MOU with Tees Valley
Lithium as we share their vision of establishing a strong and
robust lithium supply chain in the UK that facilitates the adoption
of EV's and advancement of the energy transition. We believe Tees
Valley Lithium has positioned themselves to be a tier one supplier
of lithium hydroxide and are excited to be part of their sourcing
strategy, leveraging Traxys' supply chain finance and management
expertise to best serve battery and OEM customers."
Alkemy and TVL Director, Sam Quinn, commented:
"We are delighted to be partnering with leading global metals
trader Traxys who will supply TVL with the lithium feedstock
required for TVL to become Europe's largest and lowest-carbon
lithium hydroxide producer, located at the Wilton International
Chemicals Park in Teesside, UK.
Utilising a state-of-the-art electrochemical process route and
powered by low-cost green energy, TVL will be supplying the UK and
Europe with 96,000tpa of low carbon, battery-grade lithium
hydroxide - the equivalent to 15% of European demand.
Recently, TVL has also announced the release of its Class 4
Feasibility Study along with outstanding metallurgical testwork
results for its high-purity battery-grade lithium hydroxide,
validated by Cathode Active Material manufacturers.
Preparations are now well advanced for activities on the ground
to commence later in the year."
Under the terms of the MOU, Traxys has agreed to cooperate and
collaborate with TVL to source and supply lithium feedstock for
train 1 of TVL's processing facility located at the Wilton
International Chemicals Park in Teesside, UK.
Construction of train 1, the first of 4 trains, is due to
commence at the end of this year, with initial production of
24,000tpa planned for 2024. Once completed, all 4 trains will
produce a total of 96,000tpa of battery-grade lithium hydroxide,
representing around 15% of Europe's projected demand.
More than 700GW of gigafactories are planned for construction
across Europe which will require over 325,000 tonnes of lithium
hydroxide per annum: currently there is zero lithium hydroxide
capacity in Europe.
By sourcing low carbon feedstock and powering an electrochemical
process with offshore wind, TVL is aiming to supply its customers
with the world's lowest-carbon lithium hydroxide.
About Traxys
Traxys ( www.traxys.com ) is a leading physical commodity trader
and merchant in the metals and natural resources sectors. Its
logistics, marketing, distribution, supply chain management, and
trading activities are conducted by over 450 employees in over 20
offices worldwide, with annual turnover in excess of USD 8
billion.
Headquartered in Luxembourg, Traxys is engaged in sourcing,
trading, marketing, and distributing non-ferrous metals,
ferro-alloys, minerals, industrial raw materials, and energy. The
Group serves a broad base of industrial customers and offers a full
range of commercial and financial services.
Traxys, a privately held company, is owned by Traxys' management
team, The Carlyle Group (NASDAQ: CG), and affiliates of Louis M.
Bacon, the founder of Moore Capital Management, LP, and Moore
Strategic Ventures, LLC, Mr. Bacon's privately held investment
company.
Traxys have specific Lithium sourcing and trading experience,
having entered into agreements with mining companies across Canada
and Europe including Nemaska, Lepidico, and European Lithium.
Traxys is also an active member of the International Lithium
Association ("ILiA"). Founded in 2021, the ILiA brings together
entities that operate across the lithium value chain to support the
industry's efforts to supply high-quality lithium sustainably and
responsibly. Overall, they aspire to proactively engage the lithium
community to pursue better ESG practices.
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
Buchanan Tel: 0207 466 5000
Bobby Morse/Abigail Gilchrist TVL@buhanan.uk.com
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
Chemicals 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 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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