REG - Alkemy Capital Invs. - TVL FEED Study

Alkemy Capital InvestmentsAnnouncement

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RNS Number : 4056R  Alkemy Capital Investments PLC  03 February 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE
MARKET ABUSE REGULATION NO. 596/2014 ("MAR") AS IN FORCE IN THE UNITED KINGDOM
PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.

3 February 2026

Alkemy Capital Investments Plc

TVL FEED Study Confirms Low Capex and Strong Economics

 

Tees Valley Lithium Limited ("TVL"), a wholly owned subsidiary of Alkemy
Capital Investments plc ("Alkemy") (LSE: ALK) (FRA: JV2) is pleased to
announce the outcomes of its Front-End Engineering Design ("FEED") programme
for its proposed lithium hydroxide refinery in Teesside, UK.

 

TVL's projected capital intensity positions it at the lower end of the global
cost curve and materially below that of comparable European lithium refining
projects. It also has strong economics with a Capex of US$243.6 million and an
EBITDA of US$65.9 million per annum.

 

The FEED work has delivered a defined technical and commercial framework for
TVL's initial production train, providing the necessary clarity to support
financing, contracting, and progression to Final Investment Decision ("FID").

 

Project Overview and Market Context

 

TVL's proposed facility is designed to produce 25,000 tpa of battery-grade
lithium hydroxide monohydrate ("LHM") for the European electric vehicle and
battery supply chain. European battery manufacturing is forecast to exceed
900GWh per annum by 2030,(1) driven by committed gigafactory developments
across the UK and mainland Europe and underpinned by long-term policy support
for electrification and energy transition.

 

This level of capacity equates to an estimated lithium requirement of
approximately 720,000 tpa of Lithium carbonate equivalent ("LCE")(2) by 2030.
Against this backdrop, TVL's initial production train would represent less
than 3% of projected European lithium chemical demand, with the potential to
increase this share through phased capacity.

 

This demand growth continues to drive the need for secure, domestic lithium
chemical refining capacity capable of supporting European battery
manufacturers with reliable, low-carbon supply.

 

FEED Outcomes

 

The FEED programme has established the basis of design for TVL's initial
production train, including:

 

·    A nameplate production capacity of 25,000 tonnes per annum of
battery-grade lithium hydroxide monohydrate.

 

·    A refined capital cost estimate of US$243.6 million, consistent with
TVL's previously communicated capital framework.

 

·    An updated operating cost estimate of US$33.2 million per annum,
reflecting optimisation of energy consumption, reagent usage, and maintenance
strategy.

 

·    A developed process flowsheet, plot layout, equipment list, and
execution plan suitable for progression into detailed engineering and
construction

 

This process design is based on Veolia's proven, industrially deployed
technology and is configured to act as a merchant refinery, providing enhanced
feedstock flexibility and supply security.

 

Alkemy Chairman, Paul Atherley, added:

 

"We are delighted with the work done by Vikki and the team with Veolia and
Wave International and a number of local contractors in completing a FEED
study which has clearly demonstrated that a Teesside based merchant Lithium
refinery can be both world class in scale and also internationally highly
competitive. The low capital costs and strong economics underpinned by tier
one offtake partners puts the company in a strong position to complete the
financing and move to FID in the very near future."

 

Tees Valley Lithium CEO, Vikki Jeckell, added:

 

"The FEED work has provided the level of definition required to progress
confidently towards Final Investment Decision, while maintaining a disciplined
focus on capital efficiency, operating cost control, and deliverability.
Independent benchmarking from SC Insights confirms the project's competitive
cost position relative to peer European developments, and site ownership
further enhances long-term cost certainty and execution confidence."

 

 

Site Control and Infrastructure Strategy

 

The FEED outcomes are underpinned by Alkemy selecting to purchase rather than
lease the industrial plot for the TVL facility(3), which will support both the
initial production train and future expansion phases. Site ownership provides
long-term control over the project footprint, reduces lifecycle cost exposure,
and removes rental escalation and lease renewal risk over the operating life
of the facility.

 

The site configuration and engineering design incorporate defined boundary
connections to power, water, and other essential utilities, enabling efficient
integration with existing industrial infrastructure while limiting capital
requirements. This approach supports a capital-efficient development strategy,
reduces execution and schedule risk during construction and commissioning, and
provides a stable platform for long-term operations and expansion.

 

Project Economics

 

The FEED programme has enabled TVL to develop a defined economic model for the
initial production train, reflecting the refined capital and operating cost
estimates, site ownership, infrastructure strategy, and previously announced
commercial arrangements.

 

Based on the FEED outcomes, the project economics for the initial production
train demonstrate a robust and competitive financial profile, with attractive
cash generation and returns across lithium price cycles.

 

A summary of the key project economic metrics derived from the FEED work is
set out below.

 

                          Base Case Financials FEED Study
 Revenue(4,5) US $M/a     $99.1
 EBITDA US $M/a           $65.9
 Total CAPEX US $M        $243.6
 Total annual OPEX US $M  $33.2

 

TVL notes that the project economics are supported by the previously announced
binding offtake agreement covering up to 40% of initial production capacity,
as well as independent third-party benchmarking of capital and operating
costs.

 

Design for Delivery and Cost Discipline

 

The facility has been engineered using a modular, plug-and-play design
philosophy, enabling:

·    Simplified construction sequencing and reduced interface risk;

·    Early procurement of long-lead equipment; and

·    Reduced on-site construction intensity through off-site fabrication
and modular assembly.

 

The FEED outcomes reflect a disciplined approach to capital and operating cost
control, with project layout, infrastructure strategy, and operating
philosophy designed to minimise fixed overheads while maintaining product
quality, reliability, and operational resilience.  Based on the current
construction execution plan, the project is expected to require approximately
450,000 direct field man-hours, supporting an average on-site workforce of
approximately 100 personnel per day over the build programme.

 

Independent Cost Benchmarking

 

As part of the FEED programme, TVL worked with independent third-party
analysis from SC Insights assessing the projected capital and operating cost
position of TVL's refinery to comparable lithium refining projects both in
Europe and globally.

 

 

Based on this analysis, TVL's projected capital intensity per tonne of LCE is
positioned at the lower end of the global cost curve and materially below that
of comparable European lithium refining projects. The benchmarking indicates
that TVL's capital intensity compares favourably not only against European
peer developers but also against established producers, reflecting the
benefits of site ownership, infrastructure integration, modular design, and
the use of proven process technology.

 

 

 

In addition, SC Insights' analysis of operating costs for refining
technical-grade lithium carbonate indicates that TVL's projected operating
cost profile is among the lowest in the regions assessed, with operating costs
materially below those observed in Europe and Japan and competitive with
lower-cost regions globally.

 

The benchmarking assessment is based on publicly available disclosures from
lithium refining projects and producers, supplemented by SC Insight's internal
industry knowledge and adjusted for feedstock type, process route, project
maturity, and regional cost structures.

 

LIB Supply Chain Specialist of SC Insights, Jon Mulcahy, commented:

 

"Lithium-ion battery value chains are a core platform industry underpinning
21st-century industrial development. Completion of the FEED study during a
cyclical slowdown has left TVL well-placed to move forward in a market which
has seen prices increase over 100% in the past two months. Given the acute
shortage of lithium conversion capacity in the UK and Europe, TVL represents a
strategically important project, enhancing supply-chain resilience while
reducing dependence on imported materials."

 

Commercial Positioning and Offtake

 

As previously announced, TVL has secured a binding offtake agreement covering
up to 40% of the initial production capacity with a wholly owned subsidiary of
Glencore Plc, a major participant in the global battery materials supply
chain. The FEED outcomes confirm TVL's ability to meet the product quality,
volume, and delivery requirements associated with this agreement.

 

Next Phase

 

With the FEED programme having established a robust technical and commercial
foundation, the Company is progressing final project financing, contractor
engagement, and remaining regulatory and permitting activities in parallel,
with the objective of advancing the project to Final Investment Decision.

 

1.     Publicly announced European cell capacity by 2030 as of October
2025.

2.     Based on 0.8kg LCE per KWh.

3.     Further details relating to the land asset will be released in
accordance with regulatory disclosure.

4.     Based on a long-term battery-grade lithium hydroxide index price of
$20,000 per tonne

5.     Revenue is based on an effective processing fee per tonne of LHM

 

 

 

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.

 

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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