As the North East’s continues to be a centre of lithium development - feeding the predicted surge in demand for batteries to power more electric vehicles - one of the latest high-profile projects says it could generate revenues of more than £49bn.

Alkemy Capital Investments formed Tees Valley Lithium in February to develop the UK’s first lithium hydroxide monohydrate (LHM) processing facility at the Wilton International within the Teesside Freeport.

Alkemy has just released a financial statement for the six months ended 31 July and while Non-Executive Chairman Paul Atherley reveals a loss of £1.3 million, he also says a new study by Wave International, a leading engineering consultancy firm, suggests potential gross revenues of £49.2billion.

Read more: BP to supply green hydrogen to Tees Valley Lithium plant

Other highlights of the financial update include:

Test work confirming ultra-pure battery-grade lithium hydroxide

Partnerships established with Traxys and Weardale Lithium for feedstock

An Australia strategy launched

Key consultants appointed and management positions filled

Oversubscribed private placement completed

Partnership established with bp for green hydrogen use.

“Although we are still in the early stages, our aim is to build the most sustainable and significant producer of lithium hydroxide globally, utilising the advantages of the UK’s chemical processing skills, infrastructure, green energy and legislation,” it says.

“The LHM facility will process feedstock imported from various sources to produce 96,000 tonnes of a premium, low-carbon lithium hydroxide annually, representing around 15% of Europe’s projected demand.

“The project is the first of its kind in the UK, the biggest in Europe and will when completed be a key supplier to UK and European giga factories, electrical vehicle and battery storage industries."

With regard to feedstock and partnerships, in July the company signed a partnership agreement with Traxys, a leading global physical trader and merchant in metals and natural resources, to source and supply lithium feedstock for its processing facilities.

The following month it announced the signing of an MoU with Weardale Lithium as a potential feedstock supplier from its lithium project here in the North East.

In August it also announced plans to build an LSM plant at Port Hedland, Australia’s largest export port located in the Pilbara region of Western Australia, to feed back to Teesside.

Paul Atherley says in the report: “During the period we hosted a number of site visits in Teesside for brokers, investors and partners. The site visits were very well received and demonstrated to our guests the excellent facilities at Wilton International and at Teesside.

"The pace to decarbonise is accelerating and with a growing need for lithium hydroxide and now a growing preference from western OEM’s to source lithium hydroxide using more local supply chains, Alkemy is well positioned to benefit from these changes.”

 

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