REG - Alkemy Capital Invs. - MOU with Recharge Industries

Alkemy Capital InvestmentsAnnouncement

07/02/2023 07:00

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RNS Number : 0891P  Alkemy Capital Investments PLC  07 February 2023

 

7 February 2023

 

Alkemy Capital Investments Plc

 

Tees Valley Lithium enters into MOU with Recharge Industries to supply Lithium
Hydroxide

 

 

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) and its
wholly-owned subsidiary Tees Valley Lithium Limited ("TVL") are pleased to
report that TVL has entered into an MOU with Recharge Industries Pty Ltd
("Recharge") for Lithium Hydroxide tolling and Spodumene sourcing.

 

HIGHLIGHTS

 

·   Recharge is an Australian Lithium-ion battery company who have
successfully bid to purchase Britishvolt, a planned £3.8 billlion Lithium-ion
Gigafactory in Northern England

 

·    TVL and Recharge have agreed to negotiate toward executing a
definitive offtake agreement to supply tolled low-carbon lithium hydroxide
into Recharge's qualified supply chain and to potentially jointly source
spodumene for TVL's processing facilities

 

·    Recharge is currently developing Australia's first large-scale
lithium-ion cell production facility in Geelong, Australia.

 

Following Recharge's successful bid to acquire Britishvolt, a £3.8 billion
Gigafactory planned to be built in Blyth in Northumberland and under an MOU
with Recharge, TVL has agreed to supply tolled lithium hydroxide to Recharge
from its facility in Teesside. Both companies will continue good-faith
negotiations, aiming toward a definitive offtake and supply agreement.

 

In addition, both TVL and Recharge have agreed to work together to jointly
source lithium spodumene to be used in TVL's refinery in Port Hedland, Western
Australia for conversion to lithium suphate to be shipped to Teesside, UK for
conversion into lithium hydroxide.

 

Recharge has sought the support of TVL to safeguard the supply of critical
minerals into both its Geelong (Avalon) and Northumberland gigafactories. The
significant offtake envisaged under the MOU enables long term planning and
production forecasting and strengthens its own battery offtake agreements and
existing supply chain. Recharge will make its supply of lithium hydroxide
available to its active Cathode supplier with whom its holds a strong and
strategic relationship.

 

Recharge is backed by New York based investment firm Scale Facilitation and is
currently in the process of building a gigafactory at Avalon near Geelong,
Australia and is also involved in battery technology research and development.

 

TVL's world-class zero waste lithium hydroxide refinery in Teesside, UK will
form a significant component of the UK's transition to Electric Vehicles and
is expected to produce enough lithium hydroxide to supply 100% of the
forecasted automotive demand in the UK by 2030.

 

The project has been granted full planning permission from Redcar &
Cleveland Borough council and is now shovel ready with production forecast to
commence in 2025, generating over 1,000 local jobs.

 

By sourcing low carbon feedstock and powering an electrochemical refining
process with offshore wind and green hydrogen supplied by energy multinational
BP's HyGreen Teesside project, TVL aims to supply its UK and European
customers with the world's lowest-carbon lithium hydroxide.

 

Recharge Founder David A. Collard commented:

 

"This MOU links two like minded companies to enable the critical mineral
supply chain needed to build significant battery manufacturing capability in
Australia, the US and the UK and underscores our intent to revive the fortunes
of Britishvolt. We look forward to integrating lithium hydroxide from TVL into
our established and high performing supply chain."

 

Alkemy and TVL Director Sam Quinn commented:

 

"We are delighted to announce our new partnership with Recharge Industries, a
company which shares our philosophy and vision of powering the transition to a
low-carbon and low-emissions future through the development of onshore UK
facilities in the EV and battery cell supply chain."

 

 

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)

 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 establish the world's leading independent and sustainable
lithium hydroxide production by developing state-of-the-art lithium sulphate
and lithium hydroxide facilities in Australia and the UK.

 

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a
9.6 ha brownfields site with full planning permission at the Wilton
International Chemicals Park in Teesside, a major UK Freeport, to build the
UK's first and Europe's largest lithium hydroxide processing facility.

 

Tees Valley Lithium has completed a Class 4 Feasibility Study for its proposed
lithium hydroxide refinery 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.

 

Alkemy has also secured a site near Port Hedland, Western Australia to build a
world-class sustainable lithium sulphate refinery that will provide reliable
feedstock for Tees Valley Lithium.

 

 

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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