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REG - Alkemy Capital Invs. - TVL First Feedstock Deal

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RNS Number : 1617T  Alkemy Capital Investments PLC  13 November 2023



13 November 2023


Alkemy Capital Investments Plc


Tees Valley Lithium Feedstock Agreement



Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is delighted to
announce that its wholly-owned subsidiary Tees Valley Lithium Limited ("TVL")
has entered into a lithium supply heads of terms agreement with international
trading house Wogen Resources Ltd ("Wogen").

The agreement will secure lithium feedstock for the first train of TVL's
proposed merchant refinery which will be located at the Wilton International
Chemical Park in the Teesside Freeport, UK.



·    Agreement in principle reached with international trading house Wogen
for supply of technical grade lithium carbonate to Tees Valley Lithium's
merchant refinery.


·    Wogen to supply up to 20,000 tonnes annually, sufficient to fill the
first train at Wilton for an initial period of five years.


·    The price of the lithium carbonate feedstock will be negotiated
periodically based on market conditions.


·    Strong interest expected from potential offtake customers following
independent verification by internationally recognised cathode active material
manufacturer of TVL's ultra-pure battery-grade lithium products.


·    Discussions continue with a number of potential feedstock and offtake
customers with further agreements expected in due course.


·    The Wilton refinery is planned to be in full production in 2026 and
will generate over 1,000 local jobs for the UK.




Lithium feedstock secured for first of four proposed trains

TVL is establishing a merchant lithium refinery at Wilton International
Chemical Park in the Teesside Freeport for the conversion of technical grade
lithium carbonate and lithium sulphate into battery grade lithium hydroxide
and carbonate products.

Wogen is a leading international trader of off-exchange specialty metals and
minerals, with a long history and well established presence in the battery
metals market across Asia, United States and Europe. Wogen has an active
trading book in lithium products procuring from an array of producing
countries and selling into the battery supply chain.

TVL and Wogen have entered into heads of terms whereby Wogen intends to supply
up to 20,000 tonnes of technical grade lithium carbonate feedstock per annum
for an initial period of five years.

The supply will be sufficient to fill the first of the proposed four trains at
Wilton producing around 24,000 tonnes of battery grade lithium hydroxide or
lithium carbonate equivalent.

The parties have agreed that the price of the lithium carbonate feedstock will
be negotiated based on prevailing market conditions at the time of supply and
that technical specifications will be agreed in conjunction with the product
validation requirements of TVL's offtake customers.

The Wilton refinery will create a significant number of jobs both during
construction and on a permanent, full-time basis. The capital cost is
estimated to be US$300m. Securing a feedstock supply for the first train
allows TVL to advance financing discussions with debt and equity providers at
the TVL level.

Lithium is considered a critical raw material for the energy transition and
pathway to NetZero. Lithium in both its hydroxide and carbonate forms are the
essential materials for the cathodes in batteries used in electric vehicles
and batteries for storage.

Currently there is limited major lithium production capacity in Europe at a
time when there is over 700 GW of battery capacity planned which will require
325,000 tonnes of lithium hydroxide and carbonate per year.


John Craig, CEO of Wogen, commented:


"We are very pleased to be able to support TVL, deploying Wogen's
international reach and expertise in the lithium market to source suitable
material as feedstock for their proposed Teesside refinery. This is an
exciting refining project within the battery sector supply chain and one that
Wogen is particularly pleased to be associated with."


Non-Executive Chairman Paul Atherley commented:


"This is a key milestone for TVL as it seeks to establish the UK's first
merchant lithium refinery which will be an important local supply chain for
the UK and Europe's battery manufacturers.

Tees Valley Lithium's location in the Wilton International Chemical Park with
its cluster of complementary businesses, plug and play services, excellent
transport logistics together with the tax benefits provided by the Freeport
make the refinery a compelling proposition for both feedstock suppliers and
offtake customers.

Signing an agreement with a leading international lithium trader is a
significant validation of the project showcasing TVL's strategic drive to
ensure consistency in its refining operations backed by Wogen's global
expertise and robust trading operations.

The Company is in advanced discussions with a number of other feedstock
suppliers and offtake customers and looks forward to providing further updates
in due course."


About the Wogen Group of Companies


Wogen, derived from the Chinese word meaning 5 metals, was created in 1972 and
is a leading international trader of off-exchange specialty metals and
minerals, with a particularly strong presence in Asia, United States and

During the company's 50-year history it has developed a strong management team
as well as a broad range of suppliers and customers around the globe, based on
long-term relationships, giving unique market insights both on the demand and
the supply side.

Wogen trades as a principal, provides sales, marketing and distribution for
producers and miners, and sources material for consumers on a global scale.
 Headquartered in London, Wogen has offices in Beijing, Shanghai, Guangzhou,
Hong Kong, Johannesburg and Cleveland in the USA.


Further information


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


 Alkemy Capital Investments Plc  Tel: 0207 317 0636

                                 info@alkemycapital.co.uk (mailto:info@alkemycapital.co.uk)
 SI Capital Limited              Tel: 0148 341 3500
 VSA Capital Limited             Tel: 0203 005 5000





Alkemy is seeking to establish independent and sustainable lithium hydroxide
production by developing lithium sulphate and lithium hydroxide facilities in
the UK and Australia.


Alkemy, through its wholly owned UK 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 one of 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 or an equivalent amount of lithium carbonate annually, representing
around 15% of Europe's projected demand.


Alkemy, through its wholly owned Australian subsidiary Port Hedland Lithium,
has secured a 43.7 ha site at the Boodarie strategic industry area, near Port
Hedland, Western Australia to build a world-class sustainable lithium sulphate
refinery that will provide reliable feedstock for Tees Valley Lithium's


Port Hedland Lithium has completed a Class 4 Feasibility Study for its
proposed lithium sulphate refinery, each train of which will process spodumene
concentrate to produce 40,000 tonnes of lithium sulphate annually.



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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