Tees Valley Lithium to supply Recharge Industries with lithium for Britishvolt

Recharge Industries, the Australian unit of Scale Facilitation and preferred bidder to acquire battery developer Britishvolt, has signed a lithium supply agreement with Alkemy Capital Investments' subsidiary Tees Valley Lithium, Alkemy said Feb. 7.

TVL and Recharge have signed a memorandum of understanding and will negotiate a definitive offtake agreement to supply tolled low-carbon lithium hydroxide for Recharge's qualified supply chain and to potentially jointly source spodumene for TVL's processing facilities.

On Feb. 6, EY said Recharge had successfully bid to purchase Britishvolt, with the deal expected to be completed within seven days.

TVL will supply the gigafactory that Britishvolt had planned to build in Blyth, Northumberland, and Recharge's Geelong gigafactory in Australia with tolled lithium hydroxide from its facility in Teesside, with both companies aiming toward a definitive offtake and supply agreement, Alkemy said.

The companies have also agreed to collaborate to jointly source lithium spodumene to convert into lithium sulfate at TVL's refinery in Port Hedland, Western Australia, to be shipped to Teesside for conversion into lithium hydroxide.

TVL aims to supply its UK and European customers with low carbon lithium hydroxide by sourcing low carbon feedstock and powering an electrochemical refining process with offshore wind and green hydrogen.

"The significant offtake envisaged under the MOU enables long term planning and production forecasting and strengthens its own battery offtake agreements and existing supply chain," Alkemy said, adding that Recharge would make its supply of lithium hydroxide available to its unnamed active cathode supplier.

Recharge Industries shared TVL's "philosophy and vision of powering the transition to a low-carbon and low-emissions future through the development of onshore UK facilities in the EV and battery cell supply chain," Alkemy and TVL Director Sam Quinn 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," Recharge founder David Collard said.

In January, TVL won the first phase approval for its proposed lithium hydroxide refinery from the UK government's Automotive Transformation Fund.

In November, the Redcar and Cleveland Borough Council granted permission for the $300 million refinery to be built at the Wilton International Chemicals Park in the Teesside Freeport.

TVL has completed a full environmental impact assessment for the project over an 18-month period and was 'shovel-ready' with construction due to start in 2023 and operations expected to commence in 2025.

The refinery will be able to produce 96,000 mt/year of low-carbon battery-grade lithium hydroxide for the electric vehicle battery industry once it reaches full production.

Platts, part of S&P Global Commodity Insights, assessed seaborne lithium hydroxide at $77,800/mt CIF North Asia Feb. 7, up 145% since the start of 2022.