A forthcoming Teesside lithium hydroxide factory has signed an Memorandum of Understanding to supply the preferred bidder for the collapsed Britishvolt battery project.
Tees Valley Lithium, which is a wholly owned subsidiary of LSE-listed Alkemy Capital Investments and has planning permission for a £200m facility in Redcar, said in an update to investors that it would continue good-faith negotiations with Australian start-up Recharge Industries, aiming toward a definitive supply agreement.
The final deal could see Tees Valley supply low-carbon lithium hydroxide into Recharge’s supply chain and also potentially jointly source spodumene for Tees Valley’s processing facilities.
The two firms also plan to work together on sourcing lithium spodumene for Tees Valley Lithium’s planned refinery in Port Hedland, Australia. The spodumene would be converted into lithium sulphate here before being shipped to Teesside and turned into lithium hydroxide.
Recharge founder David Collard said: “This MOU links two like minded companies to enable the critical mineral supply chain needed to build significant battery manufacturing capability in Australia, the US and the UK and underscores our intent to revive the fortunes of Britishvolt. We look forward to integrating lithium hydroxide from TVL into our established and high performing supply chain.”
