Alkemy Capital Investments (ALK ) made a major announcement this morning that its wholly-owned subsidiary Tees Valley Lithium (TVL) has received full permission to build Europe's largest lithium hydroxide refinery at Teesside, UK.
TVL was granted the permission by Redcar & Cleveland Borough Council, to establish the UK's first - and Europe's largest - 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 18-month period, TVL's US$300m facility is now shovel-ready with production forecast to commence in 2025. The facility is expected to generate over 1,000 local jobs.
The refinery will be powered by 100% certified green energy, and output 96,000 tpa of low-carbon battery-grade lithium hydroxide once in full production - equivalent to 15% of projected European demand.
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."
View from Vox
Alkemy shares soared as much as 50% today as the company received final permission to construct Europe's largest lithium hydroxide refinery in the UK.
The significance of this announcement cannot be overstated. The US$300m facility will be the first of its kind in the UK and expected to produce enough lithium hydroxide - a crucial ingredient in EV batteries - to meet 100% of forecast automotive demand in the UK by 2030, and still have 35% of production available for export to Europe and elsewhere.
Indeed, the refinery is expected to meet 15% of European demand while using 100% renewable energy in the form of offshore wind and green hydrogen, supplied by HyGreen Teesside Project. This will enable TVL to produce the world's lowest-carbon lithium hydroxide while supporting 1,000 jobs in the UK. If you are an ESG-minded investor, add ALK to your list and make sure to the company, so you do not miss future coverage.
Demand for EV metals is only projected to grow with over 700GW of gigafactory capacity announced in Europe, and an annual projected demand of 650,000 tonnes of locally refined lithum chemicals. TVL aims to challenge China's dominance in the market as the PRC currently controls 90% of the world's lithium refining capacity. Being the world's largest producer, consumer, and importer of coal, China's EV metals industry is anything but clean.
TVL selected the site at the Wilton International Chemicals Park for its excellent existing links to transport and utility infrastructure, including water, gas, steam, and electricity. This will enable TVL to begin construction in 2023 with production forecast to commence in 2025.
TVL is currently in advanced discussions with a number of offtake customers, including European gigafactories and electric vehicle OEMs.
Alkemy Capital Investments owns 100% of TVL.
Follow News & Updates from Alkemy Capital Investments: