TIDMALK
RNS Number : 5679H
Alkemy Capital Investments PLC
25 November 2022
25 November 2022
Alkemy Capital Investments Plc
Planning permission granted to develop Europe's largest Lithium
Hydroxide Refinery in Teesside
Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is
pleased to announce that its wholly owned subsidiary Tees Valley
Lithium Ltd (" TVL ") has received full planning permission to
build Europe's largest lithium hydroxide refinery at Teesside, UK,
to supply the burgeoning electric vehicle battery industry.
HIGHLIGHTS
-- TVL has been granted full planning permission from Redcar
& Cleveland Borough Council to establish Europe's largest - and
the UK's first - world-class lithium hydroxide refinery, located at
the Wilton International Chemicals Park in the Teesside
Freeport.
-- Following completion of a full Environmental Impact
Assessment (EIA), in conjunction with local consultation over an
eighteen-month period, TVL's US$300 million zero waste facility is
now shovel-ready with production forecasted to commence in 2025,
generating over 1,000 local jobs.
-- Utilising state-of-the-art electrochemical processing and
powered by 100% certified green energy, TVL's zero waste lithium
refinery will be the largest in Europe - producing 96,000tpa of
low-carbon battery-grade lithium hydroxide once in full production
- equivalent to 15% of projected European demand.
Following detailed studies, which included the completion of an
Environmental Impact Assessment (EIA), TVL has received full
planning permission from Redcar and Cleveland Borough Council to
construct the UK's first world-class lithium hydroxide refinery at
the Wilton International Chemicals Park in the Teesside
Freeport.
A key driver for TVL's site selection at the Wilton
International Chemicals Park is the 'plug & play' advantages of
the site, which boasts a plethora of existing infrastructure and
readily accessible utilities including water, gas, steam and
electricity. This, in turn, will allow TVL to begin construction
without delay.
The refinery will be capable of producing both lithium hydroxide
and lithium carbonate sourced from imported high grade feedstock
from South America and lithium producers located in Australia and
elsewhere.
Building a European lithium processing facility will reduce the
regional dependence on China, which currently controls 90% of the
world's lithium refining capacity, however, is expected to require
all of this production domestically in order to deliver its US$11
trillion Carbon Neutral 2060 plan.
To meet the demand for the switch to electric vehicles within
Europe, over 700GW of gigafactory capacity has been announced with
an annual projected demand of 650,000 tonnes for locally refined
lithium chemicals.
TVL's processing refinery is expected to produce enough lithium
hydroxide to supply 100% of the forecasted automotive demand in the
UK by 2030, with a further 35% of its total production available
for export to other countries in Europe and elsewhere.
TVL is currently in advanced discussions with a number of
offtake customers, including European gigafactories and electric
vehicle OEMs. These customers are increasingly focussed on price,
transparency and low embedded carbon, when sourcing high grade
lithium products.
To address this challenge, the Company plans to import
high-grade lithium feedstock in the form of technical grade lithium
carbonate and lithium sulphate from spodumene producers in
Australia and elsewhere. This, in turn, helps to avoid loading up
the world's shipping fleets with low grade spodumene concentrates
and reduce waste.
By sourcing low carbon feedstock and powering an electrochemical
refining process with offshore wind and green hydrogen supplied by
energy multinational bp's HyGreen Teesside project, TVL aims to
supply its UK and European customers with the world's lowest-carbon
lithium hydroxide.
TVL has appointed Wave International, a specialist process
engineering and project delivery company, as its lead engineering
and technology partner, a company with over twenty years mining
industry experience and boasts an industry-leading skillset in
lithium refining.
Wave has already completed a Class 4 Feasibility Study for TVL
into establishing a multi-train lithium hydroxide refinery at the
Wilton International Chemicals Park in the Teesside Freeport. As
part of these studies, metallurgical testwork has been completed
yielding ultra-pure lithium hydroxide exceeding industry standards
and validated by two third party cathode active material
manufacturers.
Sam Quinn, Director of Alkemy commented:
" The full endorsement from the Redcar & Cleveland Borough
Council is a critical step in taking TVL to its next phase of
developing the UK's first lithium hydroxide refinery and
spearheading a brand-new industry in Europe and a vital part of the
Fourth Industrial Revolution.
This decision allows us to rapidly advance with our engineering
studies ahead of construction, due to commence in 2023. The
burgeoning demand from electric vehicle OEMs highlights the urgent
need for significant lithium refinery capacity in Europe, which
currently does not exist.
Our strategic decision to locate in the Wilton International
Chemicals Park, with direct access to comprehensive infrastructure
and services and within the Teesside Freeport enables us to get
into first production by 2025 and begin supplying our low carbon
battery-grade lithium to customers spanning the UK and Europe."
Ben Houchen, Tees Valley Mayor commented:
"Tees Valley Lithium is yet another multi-million-pound project,
creating good-quality jobs on the Teesside Freeport. With plans now
approved this shovel ready project will create 1,000 jobs and
should be up and running in just a couple of years."
Frans Caljé, Chief Executive Officer of PD Ports commented:
"It's absolutely fantastic to see more inward investment coming
to the Tees Valley, this time in the form of the Tees Valley
Lithium project. PD Ports absolutely welcomes any project that is
going to generate real jobs and prosperity for our region and we
look forward to seeing the Lithium Hydroxide refinery brought to
fruition to aid growing demand as we all work towards a more
sustainable future."
Ryan Hanrahan, Director and CEO of Wave International
commented:
"This approval is a significant milestone for the combined
UK/European green energy industry, with the TVL refinery being the
first merchant lithium converter to achieve full approval status in
the region. With a secured site, full approvals and a feasibility
study TVL are now an advanced project and a leader amongst their
peer group."
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
Oonagh Reidy/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 establish the world's leading independent
and sustainable lithium hydroxide production by developing
state-of-the-art Lithium Sulphate and Lithium Hydroxide facilities
in Australia and the UK.
Alkemy, through its wholly-owned subsidiary Tees Valley Lithium,
has secured a 9.6 ha brownfields site with full planning permission
at the Wilton International Chemicals Park located in Teesside, a
major UK Freeport, to build Europe's first and largest Lithium
Hydroxide processing facility.
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.
The company has identified a site at Port Hedland, Western
Australia to build a world-class sustainable Lithium Sulphate
refinery that will provide reliable feedstock for Tees Valley
Lithium.
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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