Posted on 04 Oct 2023
London-listed Alkemy Capital said Tuesday its Tees Valley Lithium subsidiary has been selected as the preferred European lithium refiner by a major automotive OEM, following technical and commercial due diligence.
In an update on lithium offtake and feedstock negotiations, the company said it’s making good progress and an announcement would be made “in due course.” It didn’t disclose which automotive OEM intends to offtake lithium hydroxide from the proposed refinery in northeastern England.
“The due diligence focussed on Tees Valley Lithium’s ability to import a lithium sulphate from its Port Hedland facility in Western Australia and the conversion into battery-grade lithium hydroxide or carbonate at an internationally competitive price,” Alkemy says.
“Being shortlisted by major industrial players validates Alkemy’s two-stage processing strategy, the engineering studies conducted to date, and our team’s execution capability,” it adds. “Alkemy is continuing to work with these OEMs to satisfy their requirements with a view to concluding legally binding agreements as soon as possible.”
Major European gigafactories and chemicals companies are also interested in sourcing lithium hydroxide produced in the UK refinery. This could be done through offtake and/or partnership deals, Alkemy hints.
The company is also progressing discussions with potential key feedstock suppliers, including lithium miners, “well-known automakers,” global commodity trading houses and battery recyclers. Feedstock, in the form of technical lithium carbonate, could come from South America, in addition to Australian lithium sulphate, Kallanish learns.
The lithium refinery at the Wilton International Chemicals Park in Teesside, a major UK Freeport, has a planned capacity to produce 96,000 tonnes/year of lithium hydroxide. Alkemy is also developing a facility in Western Australia with capacity to process concentrate to produce 40,000 t/y of lithium sulphate.
Source:Kallanish
