LONDON, UK: Alkemy Capital Investments announced the completion of a Feasibility Study for a world class lithium hydroxide processing facility at the Wilton International Chemical Park located in the Teesside Freeport, UK.
Alkemy, through its wholly owned subsidiary Tees Valley Lithium, is seeking to develop an independent and sustainable supply of lithium hydroxide to meet the burgeoning demand from UK and European giga factories.
The facility will process feedstock imported from various sources to produce 96,000 tonnes of a premium, low-carbon lithium hydroxide annually, representing around 15% of Europe’s projected demand.
The proposed facility is located at the “plug and play” Wilton International Chemical Park located in the Teesside Freeport with connections to low carbon offshore wind and 100% certified renewable energy.
The project is the first of its kind in the UK, the biggest in Europe and will when completed be a key supplier to UK and European giga factories, electrical vehicle and battery storage industries.
The study has been prepared by Wave International, a leading engineering consultancy firm with significant experience in developing lithium hydroxide projects worldwide.
HIGHLIGHTS:
· 96,000 tonnes annual production of battery grade lithium hydroxide representing approximately 15% of projected UK and EU demand;
· Plant has been designed to process a range of imported low-carbon, high value feed sources including lithium sulphate and lithium carbonate;
· Pre-tax net present value (NPV) of GBP2.8 (US$3.9) billion based on long-term lithium hydroxide price of US$25,000 per tonne;
· Initial capital cost of GBP216 (US$300) million;
· Gross revenues of GBP49.2 (US$68.4) billion;
· Internal rate of return (IRR) of 35.6%;
· Significant potential to capture by-product value streams.
The results of the Feasibility Study demonstrate the viability of developing a robust battery-grade lithium hydroxide project with low capital and processing costs, a low carbon footprint, strong cash flow generation capacity and significant upside potential by capturing by-product credits.
The Feasibility Study has evaluated the project economics using the following assumptions:
· A merchant lithium hydroxide plant comprising four trains each with a 24,000tpa capacity, to produce up to 96,000tpa of battery-grade lithium hydroxide.
· Train 1 will follow the conventional Glauber’s Salt process route with trains 2 to 4 following an Electrochemical route.
· Purpose built facility to be constructed on a 9.6 ha plot at the Wilton International Chemical Park in the Teesside Freeport.
· Plug and play infrastructure with a connection to reliable and cheap offshore wind and 100% certified renewable energy.
· Production of a premium, low carbon product for sale to Tier 1 customers in the UK and Europe.
Sam Quinn, Director of Alkemy and Tees Valley Lithium, commented: “This Feasibility Study is a major milestone for Alkemy and its 100% owned subsidiary Tees Valley Lithium. We are moving quickly to establish a major independent and sustainable lithium hydroxide producer at the Wilton International Chemical Park in the Teesside Freeport and are pleased with the validation that this independent feasibility study brings to our project.
At full production, Tees Valley Lithium will produce 96,000 tonnes of battery-grade lithium hydroxide per annum and will be a major supplier to the UK and European electric vehicle industry.”
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