The company behind Tees Valley Lithium (TVL) said it is making “significant strides” in securing up to $25m (£19.5m) in funding for its Wilton refinery project.
The London-listed company Alkemy revealed today that it is in discussions with several potential financiers, having shortlisted key candidates for what it described as a critical funding phase.
TVL said it plans to finance the $300m (£235m) cost of Train 1 at the Wilton refinery using green bonds, debt, strategic equity, and grants.
The initial mezzanine funding will help the company to complete the front end engineering design and begin purchasing essential items for the refinery.
The lithium refinery in Teesside is expected to produce enough lithium hydroxide to supply 100 per cent of the forecasted automotive demand in the UK by 2030, with a further 35 per cent of its total production available for export to other countries in Europe and elsewhere.
Alongside its funding efforts, TVL revealed it is negotiating with a “leading lithium refining technology company” to enhance its train 1 and subsequent trains.
The company said it expected the partnership to reduce capital and operational expenses while refining TVL’s electrochemical process.
TVL is working towards finalizing commercial terms and entering a binding term sheet, with market updates to follow.
Chairman Paul Atherley said: “Alkemy continues to make good progress on a number of fronts.
“The growing interest in Tees Valley Lithium, particularly from prospective UK customers, is very encouraging. We are excited about the potential for the technology partnership with scope for both capital and operating cost reductions. Our main focus remains on progressing the mezzanine financing which is well advanced.”
Alkemy added that the battery materials market was thriving, fueled by the rise of electric vehicles and renewable energy storage.
It said this was helping to offset recent lithium price drops, which plunged to a 35-month low in its second quarter of 2024 due to oversupply and sluggish EV sales in Europe.