REG - Alkemy Capital Invs. - TVL Secures Binding Feedstock Agreement

Alkemy Capital InvestmentsAnnouncement

17/07/2025 07:00

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RNS Number : 3864R  Alkemy Capital Investments PLC  17 July 2025

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.

 

 

17 July 2025

 

Alkemy Capital Investments Plc

 

TVL Secures Binding Feedstock Agreement

 

Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) (JV2:FRA), is delighted
to announce that following the entry into an exclusive negotiation period with
Touchstone Capital Partners ("Touchstone") as set out in its RNS dated 18
March 2025, its wholly owned subsidiary Tees Valley Lithium ("TVL"), has now
concluded a long-term binding feedstock agreement with Touchstone's Chilean
lithium project ("Project Llamara"), one of the world's highest-grade lithium
brine deposits.

 

HIGHLIGHTS

 

●    Up to 100,000 tonnes of lithium carbonate equivalent secured over an
initial 5-year term.

 

●    Option to extend for an additional 50,000 tonnes per annum over a
further 2 years.

 

●    First commercial deliveries expected in 2027, aligned with TVL's
commissioning schedule.

 

●    Material sourced from Salar de Llamara, Chile, globally recognised
for exceptional lithium grades through low-cost brine extraction.

 

 

A Major Milestone for the UK's Flagship Lithium Refinery

 

This binding feedstock agreement secures a major portion of TVL's Train 1
feedstock needs, firmly establishing TVL's ability to supply battery-grade
lithium hydroxide to UK and European gigafactories. The sourcing of high-grade
Chilean brine, regarded as among the lowest-cost and most environmentally
efficient lithium inputs globally, further strengthens the project's long-term
competitiveness and ESG credentials.

 

This agreement reflects TVL's commitment to building a secure, transparent,
and sustainable lithium supply chain independent of Chinese refining. Product
qualification work will continue alongside the FEED study to ensure alignment
with TVL's battery-grade specifications.

 

Market Context: Building Certainty in a Rebounding Market

 

While current lithium prices remain subdued, forward-looking analysts project
a return to structural deficit by 2027, driven by exponential demand growth
from electric vehicles, grid storage and green industrialisation across
Europe. With over 30 gigafactories planned or under construction in the UK and
EU, TVL is now one of the only lithium hydroxide refineries in Europe with
secured, high-quality upstream supply.

 

This agreement reinforces TVL's strategic positioning as the gateway between
global lithium resources and Europe's battery ecosystem.

 

 

About Project Llamara

 

Project Llamara, established to develop high-grade lithium brine resources in
Chile, holds the concessions in Salar de Llamara, one of the world's moth
lithium-rich brine deposits. These assets are recognised for their:

 

·    Exceptional lithium grades - Amond the highest concentration brines
globally, enabling efficient, low-cost extraction and competitive production
economics.

·    Low-carbon production process - Brine-based production offers a
significantly reduced carbon footprint compared to hard rock mining,
supporting the development of sustainable and traceable lithium supply chains.

·    Robust financial backing - Fully funded by Touchstone Capital
Partners and strategic investors, Project Llamara is on track to commence
production in 2026, in line with Tees Valley Lithium's planned ramp-up.

 

 

TVL CEO Vikki Jeckell commented:

 

"This agreement with Project Llamara is transformational for Tees Valley
Lithium. It secures the foundation of our first production train, using some
of the world's best lithium resources. We are moving from ambition to
delivery: de-risking our project, demonstrating clear market advantage, and
ensuring Tees Valley Lithium is ready to meet the UK and Europe's
battery-grade lithium needs as the next demand wave hits."

 

 

Touchstone Chairman Kenny Song  commented:

"We are very pleased to collaborate with Alkemy Capital Investments Plc on
this important lithium supply cooperation. Under Alkemy's robust lithium
refinery project platform, we are confident that more strategic opportunities
across the midstream and downstream sectors can be jointly developed. These
initiatives will not only support local economic growth and job creation but
also drive forward the development of the future-oriented new energy industry.
We look forward to building a long-term and impactful partnership."

 

 

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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