REG - Alkemy Capital Invs. - TVL: Lower CAPEX, Higher Uptime, Stronger Outlook

Alkemy Capital InvestmentsAnnouncement

06/10/2025 07:00

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RNS Number : 1666C  Alkemy Capital Investments PLC  06 October 2025

 

6 October 2025

Alkemy Capital Investments Plc

Tees Valley Lithium: Lower CAPEX, Higher Uptime, Stronger Market Outlook

Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) (JV2:FRA), 100% owner of
Tees Valley Lithium ("TVL"), is delighted to announce major progress on its
flagship lithium refinery, which is on track for Final Investment Decision in
Q1 2026.

The FEED study has reduced projected CAPEX to $245m, boosted plant uptime by
5% without raising operating costs, and confirmed a project Net Present Value
(NPV) of $475 million (GBP £350 million) for the first of four proposed
trains, reinforcing the strong economic fundamentals of the refinery

Independent analysis by SC Insights International Ltd, confirms that TVL's
CAPEX and OPEX costs are expected to be the lowest in Europe and globally
competitive, with first production anticipated for early 2028 aligning with a
rising lithium price cycle and surging European demand.

HIGHLIGHTS

·    CAPEX reduced to $245m through modularisation and design
optimisation, lowering upfront investment cost

·    Plant availability increased by 5% to 90%, with no increase in
operating costs, driving stronger profitability

·    NPV of $475 million (GBP £350 million) post tax, post finance, for
the first of four proposed trains, reinforcing the strong economic
fundamentals of the business

·    First production on target for early 2028, aligning with rising
lithium prices and surging EV and ESS demand

·    Train 1 production of 25,000 tonnes per annum set to supply 2.5% of
Europe's battery-grade lithium needs, with future trains offering significant
growth potential

·    CAPEX and OPEX costs independently validated by SC Insights as
expected to be lowest in Europe and globally competitive

 

FEED study by Wave and Veolia reducing Capex and optimising process route

The Train 1 Front-End Engineering Design (FEED) study is progressing well,
with TVL working in close partnership with engineering partners Wave
International pty Ltd, a leading process engineering consultancy with
extensive experience in lithium projects, Veolia Water Technologies, a global
specialist in modular process design with advanced crystallisation technology,
and Gardiner & Theobald, who are providing project management and cost
control expertise to support delivery of the FEED study.

The modularised approach has improved schedule efficiency and reduced the
 capital expenditure for Train 1 to $245 million. Optimisation has increased
projected plant availability from 85% to 90%, without an increase in operating
cost.

Process route design modifications have been made to accommodate a broader
range of feedstock specifications, including the ability to incorporate
recycled lithium inputs, supporting both circular economy principles and
customer ESG objectives.

SC Insights confirms TVL as Europe's lowest cost refinery

Independent analysis by SC Insights  (Lithium Battery Supply Chain Experts)
confirms that TVL is expected to be the lowest-cost lithium hydroxide refinery
in Europe on both CAPEX and OPEX basis, while also ranking as globally
cost-competitive against leading producers.

SC Insights further forecasts that TVL's first commercial production of
battery-grade lithium hydroxide in early 2028 will coincide with the next
expected upturn in the lithium pricing cycle.

With European demand for battery-grade lithium projected to reach 1 million
tonnes per annum, Train 1 is expected to supply approximately 2.5% of this
market, delivering directly into a European customer base increasingly focused
on sourcing local, traceable, and low-carbon supply.

The development of further trains at TVL represents the opportunity to
significantly expand production capacity over time, strengthening the UK's
role in the European battery materials supply chain and enhancing resilience
in line with both UK and EU policy objectives.

 

Alkemy Chairman Paul Atherley commented:

"Lithium battery supply chain experts SC Insights has confirmed that TVL is
expected to be Europe's lowest cost lithium refinery on both a capital
expenditure and operating cost basis.

It has also confirmed that there is strong growing market demand for locally
processed battery grade lithium in Europe which TVL is very well placed to
meet. We are seeing this demand in the increasing interest in TVL's offtake
from Tier 1 customers.

As we close in on Final Investment decision in early 2026 there is now
palpable excitement about this important project being established in
Teesside, with the region's expertise coming forward to contribute to the
successful delivery of this world-class facility."

SC Insights Managing Director Andy Leyland commented:

"We're pleased to continue working with Tees Valley Lithium as an independent
advisor, providing detailed market and competitor benchmarking to assess the
project's position within a rapidly evolving lithium industry.

Our analysis draws on the latest cost, price, and demand data, and indicates
that TVL is expected to be one of the lowest-cost lithium hydroxide refineries
in Europe on both a capital and operating cost basis, while remaining globally
competitive.

While market dynamics will continue to evolve, the combination of modular
design, strategic location, and feedstock flexibility places TVL in a strong
position to benefit from the next phase of market growth as demand for locally
refined battery-grade lithium accelerates."

 

 

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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