Refining the Future of Energy – Right Here in Teesside

ABG Sundal Collier engaged to lead Train 1 financing

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TVL is delighted to announce the appointment of leading European financial institution ABG Sundal Collier to arrange the funding for the construction of Train 1 of the UK’s flagship lithium refinery in Teesside. This is another step forward as we progress towards producing battery grade lithium hydroxide by 2028.

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It is anticipated that the proposed US$245 million funding will be secured at the TVL level after having reached a final investment decision in early 2026 and will be composed of a blend of bonds, government grants and institutional equity.

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ABGSC has an outstanding track record in the natural resources sector, raising over US$11 billion in bond markets since 2018, further strengthening TVL's pathway towards becoming a key player in the UK and Europe's green energy transition.

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Chairman Paul Atherley commented:

"This partnership with ABGSC marks a significant milestone for Tees Valley Lithium, as we move towards delivering Europe's largest independent lithium hydroxide refinery. Securing this funding will allow us to complete Train 1 of this strategically important project, delivering 25,000 tonnes per annum of lithium hydroxide. The future looks extremely bright for TVL as we work to meet the growing demand for battery-grade lithium in Europe."

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Appointment of ABG Sundal Collier ASA - 07:00:11 05 Nov 2025 - ALK News article | London Stock Exchange

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Lithium markets remain volatile. While short-term disruptions like CATL’s mine shutdown in August caused price spikes, the structural picture is unchanged: demand is growing faster than bankable refining capacity, especially in Europe. Supply is increasing, but financing and qualification hurdles mean only a fraction of announced projects will reach production.

Pricing Trends

• Lithium Carbonate: Peaked at 85,000 yen/t in mid-August after the CATL shutdown, now back to ~73,500- 74,000 yen/t as restart news calmed the market. (Figure A)
• Lithium Hydroxide: Regained a premium over carbonate, reflecting ongoing demand from high-nickel cathode producers
• Spodumene: Prices remain week ($800-950/t) as oversupply persists, but discounts to carbonate suggest converters are capturing most margin.

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Demand Outlook

• Global demand is rising ~17.5% y/y in 2025, adding nearly 200,000 tonnes LCE.
• EVs remain the dominant driver, with larger batteries for longer-range vehicles boosting intensity.
• Energy Storage Systems (ESS) are accelerating, particularly in China, but carry inventory risk.
• Chemistry mix: demand is increasing for LFP/LMFP, raising carbonate demand. Hydroxide demand remains strongest in Europe for high-nickel batteries.

Supply Side

• SC Insights highlight that Final Investment Decisions have collapsed, financing is a bottleneck.
• Outside China, refining capacity remains scarce. Europe still only has two operating lithium refineries.

Strategic Implications for TVL

• Feedstock flexibility is crucial: SC insights stress that technical-grade and off-spec products are increasingly traded on negotiated discounts. TVL’s ability to process varied intermediates is a competitive edge.
• Refining Gap in Europe means bankable projects like TVL are strategically positioned to serve OEMs demanding secure local supply.
• OPEX discipline: Benchmarking shows TVL’s costs globally competitive (Figure B).
• Market Timing: With large defects expected from 2027 onwards, TVL’s production start date aligns with the tightening market. (Figure C)

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