REG - Alkemy Capital Invs. - Completion of Class 4 Feasibility Study

Alkemy Capital InvestmentsAnnouncement

27/04/2022 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220427:nRSa4488Ja&default-theme=true

RNS Number : 4488J  Alkemy Capital Investments PLC  27 April 2022

 

27 April 2022

 

Alkemy Capital Investments Plc

 

 

Tees Valley Lithium announces plans to establish world class Lithium Hydroxide
production at Wilton International Chemical Park, UK

 

 

Alkemy Capital Investments plc ("Alkemy") is pleased to announce the
completion of a Feasibility Study for a world class lithium hydroxide
processing facility at the Wilton International Chemical Park located in the
Teesside Freeport, UK.

Alkemy, through its wholly owned subsidiary Tees Valley Lithium, is seeking to
develop an independent and sustainable supply of lithium hydroxide to meet the
burgeoning demand from UK and European giga factories.

The 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 proposed facility is located at the "plug and play" Wilton International
Chemical Park located in the Teesside Freeport with connections to low carbon
offshore wind and 100% certified renewable energy.

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.

The study has been prepared by Wave International, a leading engineering
consultancy firm with significant experience in developing lithium hydroxide
projects worldwide.

HIGHLIGHTS:

·  96,000 tonnes annual production of battery grade lithium hydroxide
representing approximately 15% of projected UK and EU demand;

·    Plant has been designed to process a range of imported low-carbon,
high value feed sources including lithium sulphate and lithium carbonate;

·   Pre-tax net present value (NPV) of GBP2.8 (US$3.9) billion based on
long-term lithium hydroxide price of US$25,000 per tonne;

·    Initial capital cost of GBP216 (US$300) million;

·    Gross revenues of GBP49.2 (US$68.4) billion;

·    Internal rate of return (IRR) of 35.6%;

·    Significant potential to capture by-product value streams.

 

 

The results of the Feasibility Study demonstrate the viability of developing a
robust battery-grade lithium hydroxide project with low capital and processing
costs, a low carbon footprint, strong cash flow generation capacity and
significant upside potential by capturing by-product credits.

 

The Feasibility Study has evaluated the project economics using the following
assumptions:

 

·    A merchant lithium hydroxide plant comprising four trains each with a
24,000tpa capacity, to produce up to 96,000tpa of battery-grade lithium
hydroxide.

·    Train 1 will follow the conventional Glauber's Salt process route
with trains 2 to 4 following an Electrochemical route.

·    Purpose built facility to be constructed on a 9.6 ha plot at the
Wilton International Chemical Park in the Teesside Freeport.

·    Plug and play infrastructure with a connection to reliable and cheap
offshore wind and 100% certified renewable energy.

·    Production of a premium, low carbon product for sale to Tier 1
customers in the UK and Europe.

 

The Feasibility Study identifies target production over a 30-year life to be
the most appropriate option. The preliminary economics of the project are set
out below:

Table 1 - Project Economics

 Tees Valley Lithium - Economic Summary                        Unit   Value
 Life of Project                                               Years  30
 Lithium Hydroxide Sold                                        MT     2.7
 Gross Revenue                                                 GBP    49.2bn
 Initial Capital Cost Train 1 (including a 17.5% Contingency)  GBP    216M
 Life of Project Capital Cost (including initial capital)      GBP    1.49bn
 Taxes                                                         GBP    2.2bn
 NPV and IRR
 Discount Rate                                                 %      8
 Pre-Tax NPV                                                   GBP    2.8bn
 Pre-Tax IRR                                                   %      35.6
 Pre-Tax Payback Period (Train 1)                              Years  2.9 years
 After-Tax NPV                                                 GBP    2.2bn
 After-Tax IRR                                                 %      32.9
 Peak Funding Requirement                                      GBP    336
 EBITDA Margin                                                 %      26%

Notes:

-The model uses a long-term lithium sulphate price of US$10,000/t and a
long-term lithium hydroxide price of $25,000/t

-Peak funding for Train 1 is GBP218m

-Long term GBP/US$ exchange rate is 1.39

 

Sam Quinn, Director of Alkemy and Tees Valley Lithium, commented:

 

"This Feasibility Study is a major milestone for Alkemy and its 100% owned
subsidiary Tees Valley Lithium. We are moving quickly to establish a major
independent and sustainable lithium hydroxide producer at the Wilton
International Chemical Park in the Teesside Freeport and are pleased with the
validation that this independent feasibility study brings to our project.

At full production, Tees Valley Lithium will produce 96,000 tonnes of
battery-grade lithium hydroxide per annum and will be a major supplier to the
UK and European electric vehicle industry."

APPENDIX - CLASS 4 FEASIBILITY STUDY SUMMARY

PROJECT BACKGROUND

Tees Valley Lithium's strategy is to become a leading producer of lithium
products, and a key supplier to the battery supply chain for the expanding
electric vehicle ("EV") and stationary energy storage markets.

A merchant Lithium Hydroxide Monohydrate ("LHM") plant consisting of four
trains is proposed to be developed at Teesside with the following key
advantages:

·    Direct access to cheap, renewable (wind) power and certified
renewable electricity;

·    Location within a Freeport zone providing economic benefits and
frictionless trade;

·    Location close to the fifth biggest port in the UK for the import of
raw materials and export of products;

·    Location within an established industrial chemicals park, with "plug
and play" services and infrastructure;

·    Proximity to the UK and EU's Cathode Active Material and automotive
industry;

·    Experienced management team specialising in mining, mineral
processing, lithium hydroxide projects and battery supply chain;

·    Pioneering the world's first successful low-carbon electrochemical
route by partnering with global expertise and generating proven lab results.

 

Train 1 is anticipated to have a production capacity of 24,000 tpa LHM and
will be designed to process Lithium Sulphate Monohydrate ("LSM") and lithium
carbonate from multiple sources with initial supply via third party feedstock
contracts.

Train 1 will be based on a conventional Glauber's Salt processing route,
producing LHM and Anhydrous Sodium Sulphate. This process is currently
utilised extensively in LHM production in China and Australia.

Trains 2 to 4 are anticipated to have a combined production capacity of 72,000
tpa LHM and will also be designed to process LSM and lithium carbonate from
multiple sources. Train 2 will likely be based on the Electrochemical
processing route, producing LHM and a dilute Sulphuric Acid stream (which in
turn will be converted into a saleable by-product).

Tees Valley Lithium ("TVL") has developed its own IP on the Electrochemical
processing route, which utilises equipment available from reputable, global
vendors who have completed extensive testwork on lithium extraction. The
Electrochemical route is ideally suited to sites with low cost, renewable
power sources.

The target product will be Battery Grade LHM meeting the specifications of
tier 1 European automotive Original Equipment Manufacturers, TVL's target
customers. With the EV ambitions of its customers in mind, TVL aims to be an
early full-scale manufacturer of Battery grade LHM in the UK and Europe.

A key strategic consideration for the plant design is the ability to process
multiple sources of LSM, including LSM derived from spodumene, mica, brine and
recycling of used batteries as well as lithium carbonate. The test work
undertaken to date, along with resulting engineering development, has
considered variability of both LSM and lithium carbonate sources.

To achieve its strategic goals, TVL has aligned with a key strategic
shareholder base as well as appointing a highly experienced management team
with experience in the chemicals and lithium sectors.

METALLURGICAL TESTWORK

To date, a considerable amount of metallurgical test-work has been carried out
by a number of leading laboratories in the field of lithium and speciality
minerals processing and treatment.

The test-work has formed the basis for the process flowsheet in the
Feasibility Study. The metallurgical test work yielded an ultra-pure battery
grade lithium hydroxide, exceeding the industry-recognised Chinese standard
GB/T 26008-2020 D1.

The studies and laboratories are listed below.

 

Table 2 - Testwork Programmes

 TESTWORK PROGRAM                LABORATORY                       SCOPE                                                                           STATUS
 Impurity removal                Nagrom laboratories, Australia   Impurity removal from assumed LSM feedstock, to achieve purified LS solution    Varying reagent regimes being trialled examining impact on liquor purity.
                                                                  requirements for both Electrochemical and Glauber's Salt routes.

                                                                                                                                                  Program ongoing.
 Glauber's Salt crystallisation  Jord Proxa, South Africa         Production of battery grade LHM from synthetic purified LS solution, including  Complete.
                                                                  Zero Liquid Discharge.

                                                                  Confirm flowsheet for crystallisation circuit.
 Electrochemical bench scale     Electrosynthesis, United States  Bench scale proof of concept of Electrochemical route from synthetic purified   Complete.
                                                                  LS solution.

                                                                  Initial process optimisation work, assessment of different membranes
                                                                  suppliers.
 Electrochemical bench scale     Dorfner Anzaplan, Germany        Bench scale proof of concept of Electrochemical route from synthetic purified   Complete.
                                                                  LS solution.

                                                                  Desktop study into impact of impurities from different feed sources.

                                                                  Production of crude LHM.

 

The process route for each process route is set out in the Figure 1, along
with the scope of each programme. It is noted that Anzaplan's scope included a
single stage crystallisation only to a crude LHM and that Electrosynthesis did
not perform LHM crystallisation.

Figure 1 - Proposed flowsheet (left Glauber's Salt route, right
Electrochemical route) To view the image, please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_1_.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_1_.jpg)

Results - Impurity Removal Programme at Nagrom

The impurity removal programme was designed to produce a purified lithium
sulphate liquor from a low-grade lithium sulphate input, to levels acceptable
to both the Glauber's Salt and Electrochemical process routes. It is noted
that the purity requirements differ between the two routes.

The flowsheet is based on process widely used commercially in industry, and as
such the ongoing testwork is focused on examining varying reagent regimes and
the impact on liquor purity ahead of either downstream process (Glauber's Salt
or Electrochemical). The regimes and specific results are considered
confidential, and this testwork is ongoing.

Results - Glauber's Salt crystallisation work at JordProxa

The crystallisation testwork programme was designed to prove the
causticisation and crystallisation process to a final ultra-pure LHM project.
This involved causticisation, Glauber's Salt crystallisation, and three stage
lithium hydroxide crystallisation.

After three stages of crystallisation, an ultra-pure battery grade LHM product
was produced, exceeding the Chinese Standard GB/T 26008-2020 D1 as well as
TVL's target specification. TVL considers the actual values confidential at
this stage, but all analyte requirements were exceeded easily, demonstrating
the premium product to be produced by TVL.

Figure 2 - Crystallisation testwork at JordProxa. Top left: glass jar
crystallisers. Top right: crystallisers. Bottom left: centrifuge. Bottom
right: LHM crystals. To view the image, please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_2.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_2.jpg)

The Zero Liquid Discharge testwork was also completed, providing relevant
process parameters for equipment sizing which has been used in the capital
cost estimates.

Results - Electrochemical Testwork at Anzaplan

The Anzaplan testwork programme was design to examine two different
electrochemical cell configurations, and to produce a crude LHM product
through single stage crystallisation. The testwork reported specific energy
consumption and current efficiency for the two configurations, as well as
impurity profiles for crude LHM. The details of the configurations and outputs
are considered confidential.

The results from Anzaplan provide excellent justification for the proposed
Electrochemical flowsheet, proving that key purity and a number of impurity
targets can be met with only a single stage crystallisation. Future testwork
will combine the results from both Anzaplan and Electrosynthesis (see below)
into an optimised Electrochemical cell configuration, taken all the way
through to final ultra-pure battery grade LHM.

Results - Electrochemical Testwork at Electrosynthesis

The Electrosynthesis testwork programme was designed to test various process
parameters against cell performance, and also to evaluate two different
commercially available membrane technologies.

The process parameters and membrane details are considered confidential, but
included acid and base concentrations, lithium sulphate concentration, cell
configuration and batch vs. continuous operation.  Specific energy
consumption, production rate, base impurity and acid impurity were included in
reported details.

Approximately 3kg of LHM equivalent was produced in product liquor, which is
available for future crystallisation testwork along with dilute acid which is
available for future valorisation testwork.

ENGINEERING

Process Description - Glauber's Salt Route

The LSM feedstock is received and dissolved in water. The crude lithium
sulphate solution is transferred to impurity removal.

 

Impurity removal consists of two stages, where caustic and sodium carbonate
solution are respectively added as pH modifiers to precipitate out key
impurities of calcium, magnesium, iron, and aluminium by forming insoluble
hydroxides. Precipitates are removed via filtration, prior to a final impurity
removal stage using ion exchange.

 

The purified LSM solution is transferred to ion exchange columns, which
facilitate the removal of the remaining impurities from the liquor by
adsorption onto the ion exchange resin. The purified pregnant liquor solution
from the IX package is sent to the causticisation stage.

 

The purified liquor is pumped to the Lithium Hydroxide reactor where caustic
is added to convert Li₂SO₄ to LiOH and Na(2)SO(4). Glauber's Salt is
removed from the solution by exploiting its poor solubility in water at low
temperatures and transferred to the sodium sulphate anhydrous crystallization
circuit.

 

The LHM product circuit is a three-stage Lithium crystallization circuit where
the first stage is crude stage crystallization, the second is pure stage
crystallization and the third is ultra-pure stage crystallization. The wet
precipitated crystals from the third stage are then transported into the LHM
drying stage with the cooled and dried LHM product bagged and dispatched to
customers.

 

The Glauber Salt crystals that were removed report to the Glauber Salt Melter,
which dissolves the Glauber Salt crystals back into the recirculating
solution. This liquor is pumped to the Sodium Sulphate Anhydrous (SSA)
Crystallizer, which precipitates out anhydrous Na2SO4 (or SSA) crystals. The
SSA crystals are transferred to the SSA Dryer to remove all moisture and
generate the final SSA product. The SSA product is then bagged and dispatched
to customers.

 

A Zero Liquid Discharge system is incorporated to capture water excess and
return it to the processes (resulting in zero environmental liquid discharge).

 

Electrochemical Route

The LSM feedstock is received and dissolved in Calcium rich water. The Crude
Lithium Sulphate solution is transferred to impurity removal.  

 

Impurity removal consists of two stages, where a mixture of NaOH, LiOH and
Na2SO4 and a mixture of NaOH, LiOH, Na2SO4 and lithium carbonate solutions are
respectively added as pH modifiers to precipitate out key impurities of
Magnesium, Manganese, Iron, and Aluminium into insoluble hydroxides and
silicates as Magnesium or Calcium silicates.

 

Precipitates are removed via filtration, prior to a final impurity removal
stage using ion exchange.  Target impurity levels for the Electrochemical
route are different to the Glauber's Salt route, and the specifics of the
process are modified for this route.

 

The purified LSM solution is prepared prior to ion exchange, which facilitate
the removal of the remaining impurities from the liquor by adsorption onto the
ion exchange resin.

 

The polished Lithium Sulphate solution from IX is mixed prepared and pH
adjusted ahead of the Electrochemical cell feed. This solution is then pumped
to the Electrochemical cells, whereupon with the application of an electric
current, lithium sulphate is converted to

 

lithium hydroxide which is transferred to Lithium Hydroxide Evaporation, Salt
which is transferred to Salt Concentration, and Sulphuric Acid.

 

The Lithium Hydroxide is evaporated to increase the overall concentration of
the solution. The concentrated LiOH is pumped to Crude Crystallization, where
it exploits the saturated solubility of LiOH in the water against that of the
remaining impurities.

 

The LiOH crystallizes out of the solution, forming LiOH crystals that can be
removed and

reprocessed through an additional crystallization stage until the desired
grade specifications are achieved. The wet precipitated crystals from the
second stage are then transported into LHM Drying where the cooled and dried
lithium hydroxide product will be bagged and dispatched to customers. 

 

The dilute Sulphuric Acid produced by the Electrochemical process is converted
into Gypsum using Limestone or quick lime.  The precipitated slurry is then
transferred to Gypsum Filtration. The washed cake discharge from filtration is
transported onto a stockpile where it is ready for transport off-site and sale
to the market.

 

Engineering Development

The engineering has been developed to a sufficient level to support the
Feasibility Study economics which includes:

1.   Block flow diagrams

2.   Preliminary Process flow diagrams

3.   Preliminary mass and water balance

4.   Preliminary mechanical equipment list

5.   Preliminary layouts

These deliverables were completed for each process route, based on Wave
International's experience and the outcomes of the metallurgical testwork.

The figure below provides for a representation of the proposed facility
location on TVL's selected site at Wilton International.

Figure 3 - image of the proposed processing facility. To view the image,
please click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_3.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_3.jpg)

 

LOCATION

The location of the process facility is strategically proposed in the Teesside
Freeport, in close proximity to TVL's customers and to provide for fast
development and efficient operations leveraging the established "plug and
play" infrastructure at Wilton International.

The process plant benefits from excellent transport links as it is located
adjacent to the UK's fifth largest port, enabling ease of supply as well as
providing direct access to the European Market which is of particular interest
due to the size and growth rate of the EV market. TVL has been in discussions
with local transport logistics companies for the LSM feedstock and LHM
offtake.

The local skilled workforce both in the engineering and chemical processing
domains are further upsides of this location as well as the proximity to
potential future lithium mines currently under assessment in Europe.

NON-PROCESS INFRASTRUCTURE

During the process of site selection, the non-process related infrastructure
has been evaluated for the project. This includes the facilities, and
logistics requirements for material movements. The non process related
infrastructure includes the following:

1.   Site access and security

2.   Potable and demineralised water

3.   Steam

4.   Power

5.   Medical Facilities

6.   Fire services

The site is adjacent to PD Ports, the 5(th) largest container port in the UK.
PD Ports boasts large scale Roll-On-Roll-Off and Lift-On-Lift-Off container
handling facilities, as well as bulk materials handling capability.

TVL's logistics requirements can be easily met by existing port capacity and
TVL will not need to handle any bulk materials (and hence avoids issues
associated with dust management of concentrates, as well as reduced carbon
footprint from large volume international logistics).

ENVIRONMENT, PERMITTING AND APPROVALS

The Company anticipates receiving planning approval in July 2022. The table
below list the submission dates.

Table 3 - Environmental Impact Assessment Milestones

 Heads of agreement for lease      COMPLETE  March
 EIA Scoping Study                 COMPLETE  March
 Submission for Council Opinion    COMPLETE  April
 Planning Application Preparation  ON TRACK  May
 Submission final EIA              ON TRACK  June
 Due Date for Planning Approval    ON TRACK  July

 

OPERATING COSTS

An operating cost estimate has been prepared for the individual Glauber's Salt
and Electrochemical routes, both of which have a nameplate capacity of 24,000
tpa of LHM per train.

The operating cost estimate was developed as a bottom-up estimate with key
values taken from the Feasibility Study's economic evaluation report, namely
the process design criteria, mass and water balance, and the mechanical
equipment list.

All significant and measurable items have been calculated; however, smaller
items are factored as per industry practice. The level of effort for each of
the line items meets the requirements for a Class 4 Feasibility Study
estimate.

CAPITAL COST

Based on the engineering development and operational management work
progressed, a Capital Cost Estimate has been prepared for the Glauber's Salt
and Electrochemical routes.

The Capital Cost Estimate was developed to meet the requirements of a Class 4
estimate as defined by the American Association of Cost Engineers' Cost
Estimation and Classification System (as applied for mining and minerals
processing industries) and represents a nominal accuracy range of ±25%, with
a contingency of 17.5%. All cost data is in GBP (£).

The Capital Cost Estimate presents the capital requirements to engineer,
procure, construct and commission TVL as defined with a throughput of 24,000
tpa. The Capital Cost Estimate covers project implementation costs for the
period between Financial Investment Decision and commissioning completion. It
also includes long-lead items brought forward from Financial Investment
Decision.

The following table provides a summary of capital costs for the Glauber's Salt
and Electrochemical routes.

Table 4 - Capital Cost (in GBP)

 Capital Costs (in GBP)          Glauber's Salt Route                            Electrochemical Route
 Installation                                     15,680,643                     20,861,939
 Earthworks                                         1,960,080                    1,960,080
 Civil/concrete                                     5,880,241                    7,823,227
 Structural                                         9,800,402                    13,038,712
 Architectural                                      9,800,402                    9,800,402
 Mechanical/Platework                             47,041,929                     62,585,816
 Piping & Valves                                    9,800,402                    13,038,712
 Electrical                                         9,800,402                    13,038,712
 Controls & Instrumentation                         7,840,322                    10,430,969
 Total Direct Cost               117,604,823                                     152,578,569
 Indirect Cost                   66,485,927                                      86,465,003
 Sub-total                       184,090,750                                     239,043,572
 Contingency (17.5%)                              32,215,881                     41,832,625

 Total Capital Cost              216,306,631                                     280,876,198

 

SUSTAINING CAPITAL

Sustaining capital of 2% of direct capital costs (excluding earthworks) has
been included in the financial model for the first 25 years, increasing to 3%
for the last 5 years.

PRE-FINANCING ANALYSIS

The project has been evaluated on both a pre-tax basis and after UK taxes.
Modelling incorporates fiscal aspects of the UK tax law, including a 19% UK
corporate tax rate.

The financial model was developed for a Base Case scenario using a long-term
LSM price forecast of US$10,000/t and long-term LHM price of US$25,000t.

WORKFORCE

At a steady state of production the Company anticipates to employ up to 100
people per train totaling 400 people for the plant at its design rate.

During the construction phase it is anticipated that around 250 direct jobs
will be created for train 1 alone.

UPSIDE OPPORTUNITES

The Feasibility Study has also identified a number of opportunities to further
improve the project and a work programme is planned to investigate these
opportunities. In additional to TVL's ultra-pure LHM product, the project will
produce two additional non lithium products:

1.   Anhydrous Sodium Sulphate from the Glauber's Salt route.

2.   Gypsum from the Electrochemical route.

An existing market exists for Anhydrous Sodium Sulphate within Europe, and as
a first mover TVL expects to place this material from train 1 into existing
markets.

For train 2, gypsum is proposed to be produced as it is noted the region is a
net importer of gypsum. It is anticipated that this product can be sold
locally.

Zero revenue has been attributed to these products in the economics.

FEEDSTOCK

The plant is set up to accommodate multiple feed sources of lithium sulphate
and lithium carbonate to maximise the number of potential suppliers. This
diversity will provide flexibility of supply and de-risks the project.

TVL is in advanced discussion with a number of feedstock suppliers including
some of the world's largest groups and is confident to be able to secure
sufficient LSM for all 4 trains.

The Feasibility Study will be utilised for completion of due diligence
activities with various suppliers as a planned next step to finalising binding
offtake.

CLIENTS

TVL is also in discussions for long-term supply agreements with Original
Equipment Manufacturers and battery manufacturers and is confident that it
will secure customers for 100% of its production.

TIMELINE

 

TVL anticipates first production during Q4 2024. Figure 4 lists the various
milestones including:

·    Permitting - Q2 to Q3 2022

·    Long lead time procurement - Q3 2022 to Q2 2023

·    Financing - Q4 2022

·    Main Construction, subject to financing - Q4 2022 to Q4 2023.

·    Commercial production - Q4 2024

Figure 4 - Timeline of the development Milestones To view the image, please
click on the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_4.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_4.jpg)

 

EV REVOLUTION

 

The UK / EU have announced a ban on petrol and diesel car production from 2030
onwards. This means that the automotive industry are obligated to switch to
EVs. A typical NMC EV battery requires approximately 1.15kg of lithium
hydroxide per kWhr of energy storage. Typically NMC EV's have 40kWhr
batteries.

The UK is forecast to produce 1.5M EVs in 2030, with the EU producing a
further 15M. This implies a UK market of approximately 43kt and a European
market of 434kt of lithium hydroxide. Consumer sentiment driven by concern
over climate change and more recently high petrol prices, has shown a very
aggressive adoption rate for EV's with most manufacturers quoting 9 to 12
month lead times. These two points are what is driving the EV revolution.

By 2027 it is forecast that an EV will cost less than an internal combustion
engine vehicle, so with energy costs of EV's at 1/10 of an internal combustion
engine, it will be an overwhelming economic choice to buy and EV, ensuring the
complete transition to EV's by 2030.

 

The rapid changes in consumer demand is attracting significant investment in
battery cell manufacturing. The figure below provides an estimate of battery
manufacturing capacity globally between 2021 and 2031.

 

Figure 5 - Battery manufacturing forecast (source: Benchmark Minerals
Intelligence, Battery Gigafactories 2021) To view the image, please click on
the following link
https://www.alkemycapital.co.uk/images/2022/April/Figure_5_.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_5_.jpg)

The mid and upstream supply chains to support this capacity however, is
considered constrained within the UK / EU region with respect of access to raw
materials, access to mid-stream refining and rising cost pressures. In
addition, there is tight supply of primary lithium units from brine, hard rock
(and other minerals) and recycled lithium is not yet available in material
quantities. The figure below provides a LHM market balance forecast to 2040.

Figure 6 - LHM market balance forecasts (source: Benchmark Minerals
Intelligence, Wave International) To view the image, please click on the
following link https://www.alkemycapital.co.uk/images/2022/April/Figure_6_.jpg
(https://www.alkemycapital.co.uk/images/2022/April/Figure_6_.jpg)

Whilst hard rock primary lithium supply is proving to be a dominant source of
lithium units for LHM, key challenges present themselves within the supply
chain.

 

Further information

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

 VSA Capital Limited               Tel: 0203 005 5000

 Andrew Monk (corporate broking)   amonk@vsacapital.com (mailto:amonk@vsacapital.com)

 Andrew Raca (corporate finance)   araca@vsacapital.com (mailto:araca@vsacapital.com)
 Shard Capital Partners LLP

 Damon Heath                       Tel: 0207 186 9952

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

 Isabella Pierre                   Tel: 0207 186 9927

                                   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
9.6ha brownfields site at the Wilton International Chemical 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 a 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.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIFMMTMTTTTTT