Alkemy Capital Investments (LON:ALK), the company behind Tees Valley Lithium (TVL), is making significant strides in its mission to establish the UK’s first large-scale lithium hydroxide refinery. In its latest research note, Zeus highlights a milestone five-year binding offtake agreement with a wholly owned subsidiary of Glencore, a leading global resource company, for battery-grade lithium hydroxide. This landmark deal comes as Alkemy advances the Front-End Engineering Design (FEED) for its Teesside facility and moves closer to securing $245 million in project-level financing.
Zeus analyst Robin Byde notes that the Glencore deal represents up to 40% of the refinery’s Train 1 capacity, with between 25,000 and 50,000 tonnes of lithium hydroxide to be supplied over the contract term. Deliveries are aligned with the targeted production start in early 2028. While commercial terms remain confidential, Zeus describes the agreement as offering “material potential revenues for TVL and Alkemy,” and underlines it as “a major endorsement of TVL, and the economics of the project”.
TVL’s FEED study, led by engineering firms Veolia and Wave International, is now over 90% complete. According to Byde, the final stages involve “validation and close-out activities,” with capital expenditure (CAPEX) and operational expenditure (OPEX) estimates expected shortly. Design optimisation for multi-feedstock flexibility and enhanced constructability is ongoing, while early figures suggest a positive trend in reduced costs, aided by increased discounts under the UK Government’s British Industry Supercharger Scheme.
In a further vote of confidence, ABG Sundal Collier ASA has been appointed as exclusive manager, bookrunner and financial advisor for the proposed $245 million bond and equity financing. This move propels TVL into the financing phase, a crucial step towards a Final Investment Decision (FID) targeted for Q1 2026.
Vikki Jeckell, who has stepped down as a Director of Alkemy to focus full-time as CEO of TVL, expressed optimism: “We are maintaining strong progress across all technical and cost workstreams. The move towards project-level financing marks the next step in bringing the refinery to life and positioning TVL as a cornerstone of the UK’s battery materials supply chain.”
Chairman Paul Atherley echoed this sentiment, stating, “With ABG Sundal Collier leading project-level financing and the FEED study progressing on schedule, Tees Valley Lithium continues to build the foundations for construction and operation of a new UK lithium refinery at Teesside Freeport.”
Financial and Operational Highlights:
- Offtake Agreement: 5-year binding contract with Glencore for 25k–50k tonnes of lithium hydroxide.
- Train 1 Capacity: Up to 40% covered under the Glencore deal.
- Production Timeline: First deliveries planned for early 2028.
- FEED Study: >90% complete; cost estimates trending downward.
- Government Support: Enhanced 90% energy discount under Supercharger Scheme.
- Project Financing: $245 million being arranged with ABG Sundal Collier.
- CEO Transition: Vikki Jeckell to focus full-time on project delivery.
Final Thoughts:
With strong momentum from its Glencore partnership and the appointment of ABG Sundal Collier to lead financing, Alkemy Capital is fast approaching the next critical phase of development for Tees Valley Lithium. The leadership of CEO Vikki Jeckell, now fully focused on delivering the project, underlines the company’s commitment to establishing a domestic supply chain for battery materials. As the UK accelerates its energy transition, Alkemy’s progress could not be more timely.
