TIDMALK
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
-Ends-
Alkemy Capital Investments Plc Tel: 0207 317 0636
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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END
UPDMTBLTMTAMBJJ
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October 03, 2023 02:00 ET (06:00 GMT)
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