TIDMALK
RNS Number : 9892V
Alkemy Capital Investments PLC
15 August 2022
15 August 2022
Alkemy Capital Investments Plc
Tees Valley Lithium signs agreement with Weardale Lithium to
establish an integrated lithium supply-chain in North East
England
Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) is pleased
to announce that it's wholly owned subsidiary Tees Valley Lithium
Ltd (" TVL ") has entered into a Memorandum of Understanding
("MOU") with Weardale Lithium Limited (" WL "), an innovative
natural resources company that aims to provide secure and
sustainable, domestic supply of lithium with associated geothermal
energy from underground brines in Weardale, County Durham.
HIGHLIGHTS
-- Evaluation of the potential for WL to supply lithium
feedstock to TVL for refining at the Wilton International Chemicals
Park, Teesside UK.
-- Development of an integrated supply chain of high-value
critical minerals products and ancill a ry serv i ces eco-system in
the North East of England
-- Collaborative assessment of potential lithium processing routes for WL brines
WL and TVL consider there to be significant synergies of both
producing and refining lithium in the North East of England. Under
the MOU, WL and TVL will work together to create a battery-supply
chain industrial hub in the North East of England. This will
include the evaluation of the potential for WL to supply lithium to
TVL for refining.
Weardale Lithium is developing a potential domestic resource of
sustainable "green" lithium from naturally occurring geothermal
brines to support the rapidly expanding electric vehicle supply
chain in North East England, as well as the wider automotive
industry in the UK. Supply of domestic lithium is of strategic
importance to the UK in achieving its net-zero ambitions and
production of high-value batteries for electric vehicles in the
auto-manufacturing sector.
In July 2022, the UK's first ever Critical Minerals Strategy was
published which amongst other objectives, seeks to accelerate the
UK's domestic capabilities by maximising what the UK can produce
domestically. Lithium is classified as a Critical Mineral in this
report; currently, there is no commercial lithium production or
refining in the UK or Europe. Lithium produced and refined in the
UK will confer transportation cost advantages, supply assurances
and an environmental-premium over foreign suppliers.
Construction of Train 1 of TVL's Lithium Hydroxide processing
facility at the Wilton International Chemicals Park in Teesside UK,
the first of four trains planned for the site, will produce 24,000
tpa of battery-grade LHM. Once completed, all four trains will
produce a total of 96,000 tpa LHM, representing around 15% of
Europe's projected demand by 2030.
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.
Stewart Dickson, CEO of Weardale Lithium, said :
"Weardale Lithium has the objective to become a UK supplier of
lithium from geothermal brines. Our partnership with Tees Valley
Lithium is another important step in developing an integrated and
coherent supply of lithium in North East England. In order to
accelerate the adoption of electric vehicles and meet net-zero
targets, the UK needs to secure supply of lithium for refining and
production of battery-grade lithium hydroxide and lithium
carbonate.
This collaboration with Tees Valley Lithium is highly-beneficial
for both parties as we both seek to maintain the momentum behind
the development of the battery ecosystem in the North East. This
builds on the region's existing strengths in electrification,
automotive and advanced manufacturing and enhances the North East's
position at the forefront of electrification technologies. Local
supply of high-value critical minerals products should support the
development of the electrification revolution for years to come,
generating highly skilled science, technology and engineering
opportunities and at the same time, reducing the environmental
impacts and supply risks of imported raw materials.
This is potentially win-win for both companies and the North
East".
John Walker, CEO of Tees Valley Lithium said:
"Tees Valley Lithium is in the process of establishing a
world-class Lithium Hydroxide production at the Wilton
International Chemicals Park, located in the Teesside Freeport, in
order to supply the burgeoning demand from Gigafactories in the UK
and Europe. TVL will bring high value intermediate lithium products
with a low carbon footprint from around the world, and provide
customers in the UK and Europe with an independent and sustainable
supply of battery-grade Lithium Hydroxide and Lithium
Carbonate.
We are pleased to be bringing back high value manufacturing to
the North East and securing the critical minerals for the UK's
journey to Net Zero."
Further information
For further information, please visit Alkemy's website:
www.alkemycapital.co.uk or TVL's website
www.teesvalleylithium.co.uk .
-Ends-
Alkemy Capital Investments Plc Tel: 0207 317 0636
Sam Quinn info@alkemycapital.co.uk
Buchanan Tel: +44 (0)20 7466 5000
Bobby Morse/Abigail Gilchrist TVL@buchanan.uk.com
VSA Capital Limited Tel: 0203 005 5000
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance)
Shard Capital Partners LLP Tel: 0207 186 9952
Damon Heath damon.heath@shardcapital.com
Tel: 0207 186 9927
Isabella Pierre 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 9.6 ha 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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