REG - Alkemy Capital Invs. - Update on Lithium Feedstock and Offtake

Alkemy Capital InvestmentsAnnouncement

03/10/2023 07:00

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RNS Number : 4460O  Alkemy Capital Investments PLC  03 October 2023

 

 

3 October 2023

 

Alkemy Capital Investments Plc

 

Update on Lithium Feedstock and Offtake

 

 

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is pleased to
provide an update on the supply of feedstock and the sale of lithium products
from its proposed facilities at the Teesside Freeport, UK and Port Hedland,
Western Australia.

HIGHLIGHTS:

·    Following extensive technical and commercial due diligence, Tees
Valley Lithium has been shortlisted by a major automotive OEM as the preferred
European lithium refiner for a portion of its lithium supply chain

 

·    The due diligence focussed on Tees Valley Lithium's ability to import
a lithium sulphate from its Port Hedland facility in Western Australia and the
conversion into battery grade lithium hydroxide or carbonate at an
internationally competitive price

 

·    Discussions are also advancing well with third parties, including
other automotive OEMs, for access to Tees Valley Lithium's multi-train
facilities using either an intermediate lithium sulphate produced at Port
Hedland in Australia, or lithium sulphate produced elsewhere for refining into
battery grade lithium products to access international markets via the
Teesside Freeport

 

·    Discussions are ongoing with two major trading groups to supply
technical grade carbonate from South America and elsewhere to feed directly
one of the trains at Tees Valley Lithium's Wilton refinery to produce battery
grade lithium products on a toll treatment basis.

 

Strong interest in Alkemy's lithium refining strategy

The high level of interest in Alkemy's projects in the UK and Australia
highlights the need for lithium refining solutions for both European and
global markets.

 

Alkemy's two stage, multiple-train refinery design is able to accommodate
different feedstock sources on a train-by-train basis, thereby opening up
various feedstock, partnership and funding options.

 

 

Continued upstream investment by automotive OEMs

Recently announced transactions highlight the movement upstream by OEMs in
order to secure raw material supplies for their future battery demands.
These investments, and the number of lithium mining projects in development,
are expected to increase the supply of raw materials for the battery
transition.

The growing volume of lithium concentrates produced will require additional
refining capacity to produce the high purity materials required by cathode
manufacturers.

Despite parallel midstream investments by OEMs, this mid-stream refining
capacity continues to be a potential bottleneck for the global lithium supply
chain.

Alkemy shortlisted as preferred lithium refinery for major OEM

TVL is in discussions with several OEMs, encompassing proposals ranging from
sourcing of raw materials and refining of those materials to lithium
hydroxide, to toll treatment of lithium raw materials acquired or to be
acquired by the OEMs.

Alkemy is pleased to report that following a detailed review of its proposed
Boodarie and Wilton refineries by a global automotive OEM, Alkemy has been
shortlisted as a favoured refining partner for lithium hydroxide and
carbonate.

 

Being shortlisted by major industrial players validates Alkemy's two-stage
processing strategy, the engineering studies conducted to date, and our team's
execution capability. Alkemy is continuing to work with these OEMs to satisfy
their requirements with a view to concluding legally binding agreements as
soon as possible.

 

OEMs have also confirmed the ability to benefit from provisions of the
US-Australia Climate, Critical Minerals, and Clean Energy Transformation
Compact and the European Critical Minerals Act and Batteries Regulations.

Feedstock, offtake and partnership discussions progressing well

Alkemy continues in advanced discussions with a number of potential key
feedstock suppliers, including several industry-leading lithium miners, well
known automakers, global commodity trading houses and battery recyclers.

 

In the longer term, recycling of end-of-life batteries is expected to provide
a significant supply of lithium materials, albeit requiring separation and
refining for production of new batteries.  TVL's process has been designed
specifically to allow for reprocessing of recycled material, and in due
course, the company expects an increasing proportion of this feedstock to
supply its Wilton refinery.

 

Alkemy is also advancing discussions with several other potential customers
for its lithium hydroxide, including major European gigafactories and
chemicals companies and expects significant offtake and/or partnership deals
to be entered into in due course.

 

These customers are increasingly focussed on price, transparency and low
embedded carbon, when sourcing high grade lithium products and have indicated
their desire to partner with Alkemy due to our market leading credentials in
these areas.

 

 

Sam Quinn, Director of Alkemy, commented:

 

"We are continuing discussions for the refining of lithium raw materials with
several key globally significant feedstock suppliers and end customers, and we
are delighted at being shortlisted as a favoured refining partner by a global
automotive OEM.

The support received from third parties including major OEMs provides further
validation of our proposed lithium refining strategy. The rapid completion of
due diligence to the satisfaction of certain OEMs is testament to the quality
of the work undertaken by our commercial and technical teams.

Our focus remains on supporting our potential partners' lithium strategies and
concluding commercial negotiations.  We look forward to updating the market
in due course as these arrangements become binding."

 

Further information

 

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

-Ends-

 

 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

 

 

NOTES TO EDITORS

 

 

 

Alkemy is seeking to establish the world's leading independent and sustainable
lithium hydroxide production by developing state-of-the-art lithium sulphate
and lithium hydroxide facilities in Australia and the UK.

 

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 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 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 near Port Hedland, Western Australia to build a
world-class sustainable lithium sulphate refinery that will provide reliable
feedstock for Tees Valley Lithium's refinery. 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.
Mining exploration and development is an inherently risky business. In
addition, factors that could cause actual events to differ materially from the
forward-looking information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property and the
ultimate exercise of option rights, which may 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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