REG - Alkemy Capital Invs. - TVL Advances On-Site Lithium Recovery

Alkemy Capital InvestmentsAnnouncement

12/02/2026 07:00

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RNS Number : 6534S  Alkemy Capital Investments PLC  12 February 2026

12 February 2026

 

Alkemy Capital Investments Plc

 

TVL Advances On-Site Lithium Recovery and Strengthens Domestic Recycled Supply

 

Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) (JV2:FRA), the 100% owner
of Tees Valley Lithium ("TVL"), is delighted to announce further progress in
the development of TVL's lithium refinery through  agreements with Watercycle
Technologies ("Watercycle"), a UK-based lithium recovery and processing
company, and Circulor UK Limited ("Circulor"), a UK based global leader of
enterprise Trust & Assurance and Digital Product Passport solutions for
the EV and battery materials sectors.

 

The agreements advance the integration of on-site lithium recovery using
deployed UK technology, with the potential to unlock up to c.US$16 million per
annum of otherwise lost lithium value. They also establish a framework for up
to 50,000 tonnes of additional recycled lithium feedstock and embed digital
tracking capability at a batch level. Together these measures strengthen
project economics, increase access to recycled feedstock and ensure future UK
and EU Battery Regulatory compliance as TVL progresses toward construction.

 

HIGHLIGHTS

 

·      MoU agreed with Watercycle to integrate on-site lithium recovery
using their deployed UK modular technology, unlocking up to c.US$16 million
per annum of additional value through improved lithium recovery

 

·      Recovery solution is intended to be developed under a Build, Own
and Operate (BOO) model by Watercycle

 

·      Non-binding Heads of Terms agreed for the future supply of up to
50,000 tonnes of locally produced recycled lithium feedstock from 2028 for a
over a Five-year period,

 

·      Recycled feedstock framework supports TVL achieving its target of
a minimum of 20% recycled content in every tonne of LHM produced from first
production

 

·      Partnership with Circulor enables digital tracking at batch-level
of feedstock origin and recycled content, ensuring full compliance with the EU
Battery Regulation requirements for batteries placed on the EU market

 

On-Site Lithium Recovery

TVL and Watercycle have entered into a MoU to integrated on-site lithium
recovery into the TVL refinery using Watercycle's deployed modular recovery
technology.  Based on wastewater specifications and volume, the proposed
recovery route is expected to enable the recovery of up to approximately 800
tonnes per annum of LCE, materially improving overall lithium yield and
reducing losses typically associated with conventional refining. Unlocking up
to c.US$16 million per annum of additional value through improved lithium
recovery, based on long-term lithium index price of US$20,000 per tonne.

 

 

The modular recovery solution is expected to be delivered under a build, own
and operate model which seeks to improve resource efficiency and project
economics.

 

Recycled Feedstock Supply

Separately, TVL has agreed non-binding Heads of Terms with Watercycle covering
the future supply of locally produced recycled lithium carbonate feedstock.

 

The Heads of Terms define the key commercial and technical parameters for a
potential long-term supply arrangement, including product specifications,
recycled content, validation and qualification processes, volumes of up to
10,000 tonnes per annum, and index-linked pricing principles.

 

This supply framework enables TVL to process additional recycled lithium
material through the refinery, increasing recycled content and feedstock
flexibility without altering the core process design.

 

Watercycle Technology operates Europe's first commercial Direct Lithium
Extraction (DLE) plant, already producing lithium carbonate at its facility in
Runcorn. Following extensive testing on lithium sources from around the world,
the technology has demonstrated reliable and efficient performance on both
subsurface brines and industrial wastewater streams. The successful scaleup
and closure of its Series A funding, which included an Innovate UK Investor
partnership grant, both completed in 2024, represent major milestones toward
Watercycle's planned UK capacity of 50,000 tonnes tpa LCE by 2035.

 

Digital Tracking and Recycled Content Measurement

TVL has also partnered with Circulor, a UK based global leader of enterprise
Trust & Assurance and Digital Product Passport solutions for the EV and
battery materials sectors. Circulor works with prominent companies and their
supply chains including Volvo Cars, Ford, and Panasonic. This partnership will
deliver a digital tracking platform that records material inputs and outputs
across the refinery and enables the measurement of recycled content at a batch
level.

 

This capability allows TVL to evidence where material is sourced, how it is
processed, and the recycled content contained in each batch of product. From
2027, EU battery regulations will require digital battery passports for
batteries placed on the EU market, including verified information on material
origin and recycled content.

 

From 2031, the EU battery Regulation mandates a minimum recycled lithium
content of 6% in batteries placed on the EU market.  TVL is designing its
operations to exceed this requirement from first production, targeting 20%
recycled content, supported by on-site lithium recovery, access to recycled
feedstock and batch-level digital tracking.

 

By embedding this capability early, TVL is positioned to meet future
regulatory requirements and customer expectations without impacting refinery
operations or project delivery.

 

TVL CEO Vikki Jeckell commented:

"These agreements mark a further step forward as we continue to move TVL
forwards.  By partnering with Watercycle and integrating their on-site
lithium recovery, we are improving overall lithium yield and strengthening
project economics without increasing capital intensity. Alongside this, our
framework for recycled feedstock positions TVL at the forefront of compliant,
low-carbon lithium supply in Europe.

 

Partnering with Circulor ensures we have industrial-scale digital
infrastructure in place to track material flows and accurately measure
recycled content at a batch level. Circulor's platform is already used by
global leaders including Volvo Cars, Ford and Panasonic, giving us confidence
that TVL is building to the standards expected by the world's leading battery
and automotive customers."

 

Watercycle Technologies Co-Founder Sebastian Leaper commented:

"We are pleased to formalise this long-term partnership with Tees Valley
Lithium, marking an important step in scaling sustainable lithium recovery in
the UK. Our modular extraction technology, which is already deployed and
operating within the parameters to meet TVL's requirements, will support both
feedstock supply and onsite process waste recovery, maximising resource
efficiency and strengthening the development of a resilient, low carbon
battery materials supply chain. We look forward to continuing our close
collaboration as the project progresses."

 

Circulor UK Limited, CEO Giles Palmer commented:

"We are delighted that Tees Valley Lithium has chosen Circulor to help them
implement their Digital Product Passport and to establish and prove the
provenance of their products.  Knowing and proving where mined and recycled
feedstock comes from and how they move through their supply chain is what
regulators and customers now expect.  Our partnership with TVL will enable
them to demonstrate that their lithium products meet the highest standards of
responsible sourcing and sustainability."

 

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

                                 info@alkemycapital.co.uk (mailto:info@alkemycapital.co.uk)
 Zeus Capital                    Tel: 0203 829 5000

 

ABOUT US

 

Alkemy Capital Investments plc: Alkemy is focused on the development of
critical mineral infrastructure to support the global energy transition.
Through its wholly owned subsidiary, TVL, Alkemy is leading the way in
establishing Europe's first independent lithium hydroxide refinery.

 

Tees Valley Lithium Limited: TVL is dedicated to providing battery-grade
lithium chemicals to meet the growing demand of the electric vehicle supply
chain in Europe. Strategically located at in Teesside, TVL is committed to
sustainable, efficient, and world-class operations.

 

Watercycle Technologies Limited: Watercycle Technologies is a UK
climate‑tech spin‑out from the University of Manchester developing
proprietary Direct Lithium Extraction and Crystallisation (DLEC™)
technology. The company recovers battery‑grade lithium from UK brines and
industrial wastewater, supporting secure, sustainable domestic supply. For
further information see: www.watercycletechnologies.com
(http://www.watercycletechnologies.com) .

 

Circulor UK Limited: Circulor is a UK-based technology company founded in 2017
and the global leader in Digital Product Passports, Battery Passports, and
enterprise Trust & Assurance solutions. Its SaaS solution enables supply
chain traceability and Digital Product Passport solutions to help businesses
track materials, support responsible sourcing, and meet sustainability and
regulatory requirements. Its platform enables end-to-end visibility of complex
supply chains and is used by leading organisations to manage product-level
data, demonstrate compliance, and support circular economy objectives.

 

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. In
addition, factors that could cause actual events to differ materially from the
forward-looking information stated herein 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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