REG - Alkemy Capital Invs. - Agreement with Weardale Lithium

Alkemy Capital InvestmentsAnnouncement

15/08/2022 07:00

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RNS Number : 9892V  Alkemy Capital Investments PLC  15 August 2022

 

15 August 2022

 

Alkemy Capital Investments Plc

 

Tees Valley Lithium signs agreement with Weardale Lithium to establish an
integrated lithium supply-chain in North East England

 

 

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) is pleased to announce
that it's wholly owned subsidiary Tees Valley Lithium Ltd ("TVL") has entered
into a Memorandum of Understanding ("MOU") with Weardale Lithium Limited
("WL"), an innovative natural resources company that aims to provide secure
and sustainable, domestic supply of lithium with associated geothermal energy
from underground brines in Weardale, County Durham.

 

 

HIGHLIGHTS

·    Evaluation of the potential for WL to supply lithium feedstock to TVL
for refining at the Wilton International Chemicals Park, Teesside UK.

·    Development of an integrated supply chain of high-value critical
minerals products and ancillary services eco-system in the North East of
England

·    Collaborative assessment of potential lithium processing routes for
WL brines

 

WL and TVL consider there to be significant synergies of both producing and
refining lithium in the North East of England. Under the MOU, WL and TVL will
work together to create a battery-supply chain industrial hub in the North
East of England. This will include the evaluation of the potential for WL to
supply lithium to TVL for refining.

 

Weardale Lithium is developing a potential domestic resource of sustainable
"green" lithium from naturally occurring geothermal brines to support the
rapidly expanding electric vehicle supply chain in North East England, as well
as the wider automotive industry in the UK.  Supply of domestic lithium is of
strategic importance to the UK in achieving its net-zero ambitions and
production of high-value batteries for electric vehicles in the
auto-manufacturing sector.

 

In July 2022, the UK's first ever Critical Minerals Strategy was published
which amongst other objectives, seeks to accelerate the UK's domestic
capabilities by maximising what the UK can produce domestically. Lithium is
classified as a Critical Mineral in this report; currently, there is no
commercial lithium production or refining in the UK or Europe. Lithium
produced and refined in the UK will confer transportation cost advantages,
supply assurances and an environmental-premium over foreign suppliers.

 

Construction of Train 1 of TVL's Lithium Hydroxide processing facility at the
Wilton International Chemicals Park in Teesside UK, the first of four trains
planned for the site, will produce 24,000 tpa of battery-grade LHM. Once
completed, all four trains will produce a total of 96,000 tpa LHM,
representing around 15% of Europe's projected demand by 2030.

 

More than 700GW of gigafactories are planned for construction across Europe
which will require over 325,000 tonnes of Lithium Hydroxide per annum:
currently there is zero Lithium Hydroxide capacity in Europe.

 

By sourcing low carbon feedstock and powering an electrochemical process with
offshore wind, TVL is aiming to supply its customers with the world's
lowest-carbon Lithium Hydroxide.

 

Stewart Dickson, CEO of Weardale Lithium, said:

"Weardale Lithium has the objective to become a UK supplier of lithium from
geothermal brines. Our partnership with Tees Valley Lithium is another
important step in developing an integrated and coherent supply of lithium in
North East England. In order to accelerate the adoption of electric vehicles
and meet net-zero targets, the UK needs to secure supply of lithium for
refining and production of battery-grade lithium hydroxide and lithium
carbonate.

This collaboration with Tees Valley Lithium is highly-beneficial for both
parties as we both seek to maintain the momentum behind the development of the
battery ecosystem in the North East. This builds on the region's existing
strengths in electrification, automotive and advanced manufacturing and
enhances the North East's position at the forefront of electrification
technologies. Local supply of high-value critical minerals products should
support the development of the electrification revolution for years to come,
generating highly skilled science, technology and engineering opportunities
and at the same time, reducing the environmental impacts and supply risks of
imported raw materials.

This is potentially win-win for both companies and the North East".

 

John Walker, CEO of Tees Valley Lithium said:

"Tees Valley Lithium is in the process of establishing a world-class Lithium
Hydroxide production at the Wilton International Chemicals Park, located in
the Teesside Freeport, in order to supply the burgeoning demand
from Gigafactories in the UK and Europe. TVL will bring high value
intermediate lithium products with a low carbon footprint from around the
world, and provide customers in the UK and Europe with an independent and
sustainable supply of battery-grade Lithium Hydroxide and Lithium Carbonate.

We are pleased to be bringing back high value manufacturing to the North East
and securing the critical minerals for the UK's journey to Net Zero."

 

Further information

For further information, please visit Alkemy's website:
www.alkemycapital.co.uk (http://www.alkemycapital.co.uk) or TVL's website
www.teesvalleylithium.co.uk (http://www.teesvalleylithium.co.uk) .

-Ends-

 

 Alkemy Capital Investments Plc    Tel: 0207 317 0636

 Sam Quinn                         info@alkemycapital.co.uk (mailto:info@alkemycapital.co.uk)

 Buchanan                          Tel: +44 (0)20 7466 5000

 Bobby Morse/Abigail Gilchrist     TVL@buchanan.uk.com (mailto:TVL@buchanan.uk.com)

 VSA Capital Limited               Tel: 0203 005 5000

 Andrew Monk (Corporate Broking)

 Andrew Raca (Corporate Finance)

 Shard Capital Partners LLP        Tel: 0207 186 9952

 Damon Heath                       damon.heath@shardcapital.com (mailto:damon.heath@shardcapital.com)

                                   Tel: 0207 186 9927

 Isabella Pierre                   isabella.pierre@shardcapital.com (mailto:isabella.pierre@shardcapital.com)

 

 

 

NOTES TO EDITORS

 

Alkemy is seeking to develop, construct and operate the world's leading
independent and sustainable lithium hydroxide production facility.

 

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a
9.6 ha brownfields site at the Wilton International Chemicals Park located in
Teesside, a major UK Freeport.

 

Alkemy has completed a Class 4 Feasibility Study for its proposed lithium
hydroxide facility which will process feedstock imported from various sources
to produce 96,000 tonnes of premium, low-carbon lithium hydroxide annually,
representing around 15% of Europe's projected demand.

 

 

 

 

 

Forward Looking Statements

 

This news release contains forward‐looking information. The statements are
based on reasonable assumptions and expectations of management and Alkemy
provides no assurance that actual events will meet management's expectations.
In certain cases, forward‐looking information may be identified by such
terms as "anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although Alkemy believes the expectations
expressed in such forward‐looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those projected.
Mining exploration and development is an inherently risky business. In
addition, factors that could cause actual events to differ materially from the
forward-looking information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property and the
ultimate exercise of option rights, which may include changes in market
conditions, changes in metal prices, general economic and political
conditions, environmental risks, and community and non-governmental actions.
Such factors will also affect whether Alkemy will ultimately receive the
benefits anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the forward‐looking
statements. These and other factors should be considered carefully and readers
should not place undue reliance on forward-looking information.

 

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