Alkemy Capital signs lithium feedstock agreement with Traxys

LONDON, UK: Alkemy Capital Investments (LSE: ALK) wholly-owned subsidiary Tees Valley Lithium Ltd (TVL) has entered into a Memorandum of Understanding with leading global physical trader and merchant in metals and natural resources, Traxys North America LLC, a member of the Traxys Group of companies (“Traxys”).

HIGHLIGHTS

·    Traxys has agreed to source and supply lithium feedstock for TVL’s planned processing facility in Teesside, UK

·    Traxys is a leading global metals trader with expertise in the lithium and battery metals sectors, with annual turnover in excess of USD 8 billion

·    Lithium feedstock to initially supply Train 1 of TVL’s facility, producing 24,000tpa of battery-grade lithium hydroxide, with production due to commence in 2024

·    Traxys and TVL will also work together to gain efficient raw material validation and approval for the automotive supply chain

Traxys’ Managing Director for Lithium Supply, Kevin Smith, commented: “Traxys is pleased to enter into this MOU with Tees Valley Lithium as we share their vision of establishing a strong and robust lithium supply chain in the UK that facilitates the adoption of EV’s and advancement of the energy transition. We believe Tees Valley Lithium has positioned themselves to be a tier one supplier of lithium hydroxide and are excited to be part of their sourcing strategy, leveraging Traxys’ supply chain finance and management expertise to best serve battery and OEM customers.”

Alkemy and TVL Director, Sam Quinn, commented: “We are delighted to be partnering with leading global metals trader Traxys who will supply TVL with the lithium feedstock required for TVL to become Europe’s largest and lowest-carbon lithium hydroxide producer, located at the Wilton International Chemicals Park in Teesside, UK.

Utilising a state-of-the-art electrochemical process route and powered by low-cost green energy, TVL will be supplying the UK and Europe with 96,000tpa of low carbon, battery-grade lithium hydroxide – the equivalent to 15% of European demand.

Recently, TVL has also announced the release of its Class 4 Feasibility Study along with outstanding metallurgical testwork results for its high-purity battery-grade lithium hydroxide, validated by Cathode Active Material manufacturers.

Preparations are now well advanced for activities on the ground to commence later in the year.”

Under the terms of the MOU, Traxys has agreed to cooperate and collaborate with TVL to source and supply lithium feedstock for train 1 of TVL’s processing facility located at the Wilton International Chemicals Park in Teesside, UK.

Construction of train 1, the first of 4 trains, is due to commence at the end of this year, with initial production of 24,000tpa planned for 2024. Once completed, all 4 trains will produce a total of 96,000tpa of battery-grade lithium hydroxide, representing around 15% of Europe’s projected demand.

More than 700GW of gigafactories are planned for construction across Europe which will require over 325,000 tonnes of lithium hydroxide per annum: currently there is zero lithium hydroxide capacity in Europe.

By sourcing low carbon feedstock and powering an electrochemical process with offshore wind, TVL is aiming to supply its customers with the world’s lowest-carbon lithium hydroxide.