REG - Alkemy Capital Invs. - TVL - Exclusive Negotiation for Lithium Supply

Alkemy Capital InvestmentsAnnouncement

18/03/2025 07:00

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RNS Number : 0174B  Alkemy Capital Investments PLC  18 March 2025

18 March 2025

 

Alkemy Capital Investments Plc

 

TVL Enters Exclusive Negotiation Period for Long-Term Lithium Supply

 

Alkemy Capital Investments Plc ("Alkemy") (LSE: ALK) (JV2:FRA), the 100% owner
of Tees Valley Lithium ("TVL"), is pleased to announce that TVL has entered
into an exclusive negotiation period with Touchstone Capital Partners
("Touchstone") to finalise a long-term binding feedstock agreement for over
100,000 tonnes of lithium carbonate equivalent ("LCE").

This agreement, if secured, would provide the primary lithium feedstock to
fully support at least the first five years of production at TVL's refinery,
producing 24,000 tonnes per annum of battery-grade lithium hydroxide.

Alongside this, TVL's existing Heads of Terms with Wogen Resources Ltd
("Wogen") remains an important element of its supply strategy, providing
additional flexibility and continuity as TVL ramps up operations.

Touchstone is fully financing the development of a high-grade lithium brine
project and this combination of supply sources will ensure that TVL has a
stable, long-term, and diversified feedstock position, reinforcing its ability
to deliver a secure and sustainable lithium hydroxide supply chain for
Europe's battery industry.

This exclusive negotiation period allows both parties to complete due
diligence, finalise key commercial terms, and structure a binding feedstock
agreement that will ensure a secure and sustainable lithium supply to support
TVL's refining operations.

 

HIGHLIGHTS

 

●    Exclusive negotiation period with Touchstone Capital to finalise a
long-term binding feedstock agreement for over 100,000 tonnes of LCE,
supporting the first five years of production.

 

●    Exclusive negotiation period will enable both parties to complete
due diligence and finalise the structure of a binding feedstock agreement,
ensuring a robust and long-term supply partnership.

 

●    Represents a key milestone in de-risking TVL's supply chain,
reinforcing confidence in the sustainability and scalability of its Teesside
project.

 

 

 

 

Strengthening TVL's Supply Chain & Mitigating Risk

TVL's lithium hydroxide refinery in Teesside, UK, is set to become a leading
independent lithium refining facility, supplying battery-grade lithium to meet
the growing demand from electric vehicle and energy storage manufacturers.

By securing exclusive negotiations with Touchstone, TVL is taking a critical
step forward in establishing a stable, long-term, and transparent lithium
supply.

With lithium demand forecasted to exceed supply from 2027 onwards, securing
long-term feedstock supply is critical for battery manufacturers and lithium
refiners.

 

About Touchstone

Touchstone Capital Partners is a global investment platform dedicated to
integrating industry and finance. The firm has built a $100 billion+ project
pool over 20 years, leveraging its expertise to identify and structure
large-scale investments across oil & gas, mining, supply chains, and
international trading. Touchstone provides structured financial solutions
through risk mitigation strategies, asset management, and liquidity
management, ensuring efficient capital deployment across its projects. Through
partnerships with global industry leaders and financial institutions,
Touchstone facilitates the successful execution of high-value investments.

 

TVL CEO Vikki Jeckell commented:

"This exclusive negotiation period with Touchstone Capital is an important
milestone in securing a long-term, high-quality lithium supply for TVL. With
Touchstone fully financing the development of a lithium brine project, we are
taking a significant step toward establishing a robust and sustainable supply
chain for our Teesside refinery.

If a binding feedstock agreement can be reached, it is envisaged that this
would provide the necessary feedstock to support our first train of lithium
hydroxide production, reinforcing our commitment to delivering a secure and
transparent lithium supply chain for Europe's battery manufacturers.

Additionally, this agreement with Touchstone complements our existing
relationship with Wogen, creating opportunities to expand our collaboration,
including potential supply chain financing solutions, that will further
support TVL's refining operations".

Touchstone Capital Partners Vice President Niccolò Ravano commented:

 

"We are thrilled to enter into this exclusive negotiation period with Alkemy
which we are sure will not only result in the long term supply of Lithium
stemming from our underlying mining projects, but will also lead to a more
comprehensive cooperation between our two companies touching upon several
other areas, at a time when the mining world is back in the spotlight for
strategic and geopolitical reasons."

 

 

Next Steps

 

During the exclusive negotiation period, TVL will:

 

●    Work closely with Touchstone to finalise the structure of the
long-term feedstock agreement.

 

●    Complete necessary due diligence and commercial assessments to
ensure a robust and sustainable supply framework.

 

●    Align feedstock supply with TVL's refinery development timeline,
ensuring a smooth integration into future operations.

 

●    Continue engagement with strategic investors and offtake partners,
reinforcing confidence in TVL's long-term business strategy.

 

Further updates will be provided as developments progress.

 

 

 

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 committed to supplying battery-grade
lithium chemicals to meet the growing demand of the electric vehicle supply
chain in Europe. Strategically located at in Teesside, UK, TVL is developing a
low-carbon, independent lithium supply chain for European battery
manufacturers.

 

 

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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