TIDMALK
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.
HIGHLIGHTS:
-- 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 Europe.
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
-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
ABOUT ALKEMY CAPITAL
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 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. 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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END
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November 13, 2023 02:00 ET (07:00 GMT)
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