Government funding of up to £18.3 million has brought a proposed lithium refinery in Teesside one step closer to reality. The project, led by Tees Valley Lithium (TVL), a subsidiary of Alkemy Capital Investments plc, has received provisional approval for the funding through the DRIVE35 Automotive Transformation Fund. This financial support will aid the initial £185 million phase of the refinery’s development at the Billingham Chemical Complex.
The refinery aims to process lithium from various sources, both domestic and international, into battery-grade lithium hydroxide, a key component for electric vehicle batteries. With an expected annual production of 25,000 tonnes, TVL estimates this could support the manufacturing of over 550,000 electric vehicles during the first phase.
Project Details
Future expansions could significantly boost the refinery’s capacity to exceed 100,000 tonnes per year. According to officials, the project has the potential to contribute over £2.1 billion to the UK economy over a 25-year period, with approximately £1 billion benefiting the Tees Valley region. Additionally, it is expected to create more than 1700 jobs across construction, operations, and the supply chain.
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Tees Valley Lithium has already established key partnerships, including an offtake agreement with Glencore, process technology from Veolia, and a feedstock agreement with Wogen Resources. Vikki Jeckell, CEO of Tees Valley Lithium, stated, “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.
Reaction from Officials
Paul Atherley, chairman of Alkemy Capital Investments plc, expressed gratitude, saying, “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. This refinery, situated in Teesside’s industrial hub, will leverage the region’s chemical engineering expertise, becoming one of Europe’s largest and positioning the UK at the forefront of the global energy transition.”
Moving forward, TVL will collaborate with the Government and the Advanced Propulsion Centre UK to fulfill the remaining requirements for securing the funding. Chris McDonald, MP for Stockton North, remarked, “This is a huge vote of confidence in Billingham, Teesside and Britain’s industrial future.
