Tees Valley Lithium has agreed Heads of Terms with Wates Group to progress a Pre-Construction Services Agreement, marking the transition of the Project into its pre-construction phase.
Wates is a family owned UK contractor with recent experience delivering major industrial facilities, including in the battery industry. Under the forthcoming Pre-Construction Services Agreement, Wates will work alongside the TVL team to advance detailed engineering coordination, construction planning, programme development and cost alignment in preparation for Main Contract execution.
With Front-End Engineering Design (FEED) now complete, the Project is moving into structured pre-construction execution. This phase will focus on:
• Detailed engineering coordination
• Construction methodology development
• Programme integration
• Procurement planning and long-lead equipment coordination
Early contractor involvement strengthens delivery readiness and enhances certainty around scope, sequencing and construction strategy.
Pre-construction activities are expected to commence in March 2026.
Following completion of the FEED study, which evaluated multiple site and tenure options, TVL has selected the 17.2-acre (7 hectare) New Road, Billingham site in Teesside as its preferred location.
Situated within an established chemical park with access to interconnecting utilities and services, the site provides the scale and infrastructure required for initial production and future expansion up to 100ktpa capacity. No material changes to the previously developed plant design are required.
All core workstreams remain aligned to previously announced timelines.
Advancing pre-construction and long-lead coordination at this stage positions the Project to support targeted initial equipment deliveries from early 2027.
TVL is committed to working with local suppliers and contractors wherever possible. Strong engagement at the Company’s supply chain event last year demonstrated the depth of industrial capability across Teesside, and the Project will continue to prioritise regional expertise as it progresses.
Vikki Jeckell, CEO of Tees Valley Lithium, commented:
“Transitioning into pre-construction marks a significant step forward for the Project. We are now moving from development into disciplined execution planning.
Working with Wates strengthens our delivery capability, and we look forward to collaborating with local suppliers and partners as we advance. This facility represents a major opportunity for the region, for our shareholders and for the wider UK battery materials supply chain.”
As we continue to build Tees Valley Lithium into the UK’s leading independent lithium refinery, Our announced partnerships with both Watercycle Technologies and Circulor mark an important step forward in strengthening both our commercial model and our long‑term supply resilience. By integrating on‑site lithium recovery and securing a pathway to significant volumes of domestic recycled feedstock, we are enhancing project economics, improving sustainability performance and embedding the digital infrastructure required for future regulatory compliance.
From a commercial standpoint, these partnerships reflect the type of ecosystem we are deliberately building around TVL: UK‑based, technology‑enabled and aligned with the long‑term needs of battery and automotive customers. They give us the flexibility, transparency and low‑carbon credentials that our customers increasingly expect as the market evolves.
Why this matters
Improved lithium recovery and stronger economics
Our MoU with Watercycle Technologies brings proven, modular UK technology directly into the refinery. Their system enables us to recover lithium that would otherwise be lost in the process, improving overall yield and supporting a more efficient, lower‑waste operation. At long‑term pricing ,this represents up to US$16 million per year in value, achieved without increasing capital intensity.
Watercycle is an exceptionally strong partner for this work. They already operate Europe’s first commercial DLE plant, have demonstrated reliable performance across a wide range of brines and industrial waste streams, and are scaling UK capacity with credible technical and financial backing. Their technology is deployed, validated and fully aligned with our ambition to maximise resource efficiency from day one.
Access to domestic recycled feedstock
Our non‑binding Heads of Terms with Watercycle also provide a pathway to supply up to 50,000 tonnes of lithium carbonate over five years, with at least 50 percent of this volume expected to be recycled material. This gives us a clear route to securing UK‑sourced recycled material as national recycling capacity grows and supports our target of achieving at least 20percent recycled content from first production, well above the EU’s mandated minimum of 6 percent by 2031.
For our customers, this means access to a reliable, low‑carbon, domestically sourced feedstock that strengthens supply chain resilience and supports their own sustainability commitments.
Full traceability and battery passport readiness
Our partnership with Circulor ensures we will have full batch‑level traceability in place ahead of first production. Circulor’ s platform is already used by global leaders including Volvo Cars, Ford and Panasonic, and is widely recognised as the benchmark for digital product passport capability in the battery materials sector.
Embedding this capability early allows us to evidence material origin, recycled content and ESG performance from day one of operations. It positions TVL to meet EU Battery Regulation requirements as soon as we enter the market and gives future customers confidence in the provenance and sustainability of every tonne we produce.
What this means going forward
Together, these developments strengthen TVL’s commercial model, reduce execution risk and reinforce our position as a future leader incompliant, low‑carbon lithium refining. With improved recovery, access to domestic recycled feedstock and digital traceability built in from the outset, we are developing the capabilities that battery and automotive customers increasingly expect as the market moves toward higher sustainability and transparency standards.
These partnerships demonstrate the direction of travel for TVL: commercially robust, future‑proof and designed to give customers confidence in both the reliability and the sustainability of the material they receive.
Signed,
Gemma Cooper
Chief Commercial Officer, Tees Valley Lithium
Tees Valley Lithium has announced the outcomes of its Front-End Engineering Design (FEED) programme for its proposed lithium hydroxide refinery in Teesside, confirming a technically defined, economically robust project positioned to progress towards Final Investment Decision.
The FEED outcomes confirm that Tees Valley Lithium is designed as a low-cost, merchant lithium refinery, capable of supplying battery-grade lithium chemicals to the rapidly growing European electric vehicle and battery market.
The FEED study confirms total capital expenditure of approximately US$243 million, placing Tees Valley Lithium among the lowest-capex lithium refining projects globally and, according to independent benchmarking by SC Insights, the lowest in Europe on a like-for-like basis.
Estimated operating costs are approximately US$33 million per annum, benefiting from Teesside’s established industrial cluster, integrated infrastructure, and the use of proven processing technology. Independent benchmarking positions the project at the low end of the global operating cost curve for lithium refining.
The combination of low capital intensity and low operating costs supports forecast EBITDA of approximately US$66 million per annum. Importantly, EBITDA is driven by processing margins rather than exposure to lithium price volatility. This results in more predictable, infrastructure-style cash generation.
The proposed facility is designed to produce 25,000 tonnes per annum of battery-grade lithium hydroxide monohydrate, a critical material for electric vehicle batteries. European battery manufacturing capacity is forecast to exceed 900 GWh per annum by 2030 (according to public announcements), equating to approximately 720,000 tonnes per annum of lithium carbonate equivalent demand (0.8kg LCE per KWh).
Against this backdrop, Tees Valley Lithium’s initial production capacity represents less than 3% of projected European demand, highlighting both the scale of the market opportunity and the potential for phased expansion.
The FEED outcomes define the project’s technical design, capital framework, site ownership, and execution strategy to a level that supports financing and progression towards Final Investment Decision. This represents a significant de-risking milestone in the development of the project.
Tees Valley Lithium has secured ownership of its Teesside industrial site, providing long-term control, cost certainty, and a stable platform for future expansion. The facility has been engineered using a modular, plug-and-play design philosophy to support efficient and controlled construction delivery.
The project is further underpinned by a binding offtake agreement covering up to 40% of initial production capacity with a wholly owned subsidiary of Glencore Plc, one of the world’s leading commodity companies. The offtake agreement provides early commercial validation and supports revenue visibility as the project advances towards financing and FID.
With the FEED programme complete to a level supporting financing and execution planning, Tees Valley Lithium is now progressing project financing, contractor engagement, and the remaining regulatory and permitting activities in parallel, with the objective of advancing the project to Final Investment Decision.
Tees Valley Lithium is being developed as a cornerstone piece of infrastructure for the UK and Europe’s battery supply chain, combining Teesside’s industrial heritage with a globally competitive cost structure and a clear focus on deliverability.
Lithium Hydroxide prices have surged nearly 80% over the past month, now trading at over $18,000/t, with some sources reporting Lithium Carbonate prices exceeding $20,000/t. This is a positive signal for the industry, as most experts place the incentive price, the threshold at which new lithium mining projects become financially viable, between $17,000–$20,000/t.
To meet the growing demand, more lithium extraction and refining capacity is urgently needed. Global demand is forecast to quadruple over the next ten years, while in the UK it is expected to increase tenfold. The industry broadly agrees that we have entered the next price cycle.
But what is driving this sudden increase? Global lithium prices remain heavily influenced by China, which controls over 70% of refining capacity worldwide. Last year, China tightened lithium mining regulations, particularly in Jiangxi province, revoking expired licenses and auditing mines operated by companies such as CATL. These actions triggered a price spike at the end of 2025 and resulted in depleted domestic inventories, as numerous mines were closed for months. Replenishing these inventories to preferred levels is expected to take over a year.
At the same time, demand from Battery Energy Storage Systems (BESS), while still smaller than demand from electric vehicles, exceeded expectations in 2025 and is projected to continue growing. Demand from EV batteries remains the primary driver of the market.
Neither of these factors is expected to reverse over the next 12 months. As a result, higher prices are expected to persist, with further increases likely in 2026 as concerns over a supply deficit continue to shape market sentiment.
At TVL, we kept advancing while others paused. That discipline means we’re now ahead of most new entrants and in a prime position to capture demand as it returns. Our project is fully aligned with Europe’s expected growth trajectory through 2028, putting us on the front foot as the market accelerates.
Gemma Cooper, Chief Commercial Officer
Tees Valley Lithium (TVL) is proud to announce that we have been awarded the Innovation Award at the 2025 Battery Britain Gala — a national celebration of the companies, technologies and partnerships shaping the future of the UK’s electrification and battery ecosystem. The honour recognises TVL’s pioneering work in establishing the UK’s first large-scale lithium refinery and delivering the midstream capability required to support gigafactories, strengthen supply chains and reduce reliance on long, carbon-heavy overseas processing routes.
The award was presented following a keynote speech delivered by Vikki Jeckell, CEO of Tees Valley Lithium, who addressed the realities of building industrial capability in the UK, the importance of partnership, and the strategic role Teesside will play in powering Britain’s energy transition. In her remarks, Vikki highlighted the eleven-hundred-percent increase in lithium demand projected under the UK’s new Critical Minerals Strategy, and emphasised that innovation is not just about patents or technology, it is also about building new industrial pathways, modernising supply chains, and delivering projects the UK has never had before.
She also spoke candidly about the challenges of building chemical processing facilities in the UK: the slowest planning approvals in the G7, higher construction costs than Europe, and operational pressures such as some of the highest industrial energy prices on the continent. But she noted that TVL is overcoming these hurdles through world-class engineering partnerships with Veolia and Wave International, a modular and UK-optimised design, and the strengths of Teesside’s globally recognised industrial heritage.
The room responded with enthusiasm, and the Innovation Award that followed reflected both the ambition of the project and the leadership TVL is demonstrating within the UK battery materials sector.
Below is the full transcript of the keynote speech delivered on the night.
Keynote Speech Transcript:
Good evening, everyone. It is a privilege to be here tonight, surrounded by people who are shaping the future of Britain’s energy, industry and innovation.
And before I go any further, I want to thank Richard and the organisers for bringing us together this evening. Events like this matter, because they give us the space to think, to connect, and to build momentum behind the projects that will define Battery Britain.
When we talk about batteries or gigafactories, it is easy to focus on the shiny end-products, the EVs rolling off production lines or the storage systems powering the grid. But the truth is this: nothing happens without the materials. They are the heartbeat of the energy transition. And for too long, we have relied on long, fragile, carbon-heavy supply chains.
We therefore welcomed the recent release of the UK’s new Critical Minerals Strategy. A strategy that openly acknowledges that the UK’s demand for lithium is set to rise by eleven hundred percent by 2035. For many, it was simply a policy announcement. But for those of us building projects on the ground, it felt like something much bigger. It felt like a signal that Britain is ready to step back into a role it knows well a nation that builds things, that leads in engineering, and that backs its own ambition.
And for us this strategy also felt like recognition of what regions like Teesside have always known: that places with deep industrial heritage, world-class engineering talent, and communities built on making things possible, are exactly where Britain should be investing. Teesside powered the industrial revolution once and today it is ready to power the battery revolution.
But ambition on its own is not enough.
If the UK truly wants to rebuild industrial capability, we must also recognise the scale of the challenge in front of us. Because building a new facility here, particularly a chemical processing plant, is not easy. In fact, it is one of the hardest industrial undertakings in this country.
So, before I talk about what we are doing at TVL, let me start with the reality of the environment we are operating in. The statistics tell their own story.
The UK has the slowest industrial planning approvals in theG7, with major projects often taking five to seven years before a spade even touches the ground. Nearly sixty percent of large UK projects run late or overbudget, and we build new industrial facilities at less than half the speed of many of our competitors. And it costs more too, building a new plant in the UK can be twenty to thirty percent more expensive than constructing the same facility elsewhere in Europe.
And that is just the construction side.
Operating a chemical plant here comes with its own pressures. Large energy users in the UK pay between twenty and eighty percent more for electricity than their counterparts in France, Germany or the Netherlands. Carbon and compliance costs are among the highest in Europe. Andover the past two decades, this environment has contributed to almost half of the UK’s large chemical production sites closing.
These are not small hurdles.
They are structural disadvantages, the kind that would make most companies choose not to build here at all.
And yet, despite all of those challenges, Tees Valley Lithium is proving that it can be done and can be done well.
We have built this project in a way that turns those disadvantages into strengths. By partnering with Veolia and Wave International, we are using proven, world-class technology and disciplined engineering to shorten timelines, reduce risk and remove uncertainty from construction. We chose Teesside because it gives us access to an existing chemical cluster, a skilled workforce, shared infrastructure, and a region that knows how to build complex plants safely and efficiently. And we have designed a refinery that is modular, expandable and optimised for UK conditions, allowing us to manage energy use, streamline operations and control costs far more effectively than traditional, older plants.
In short, we are overcoming the barriers by doing three things well, choosing the right partners, choosing the right region, and choosing a design that fits the UK of today, not the UK of twenty years ago. And that is how TVL is turning one of the hardest industrial environments in the world into one of the most strategic opportunities for Britain.
At Tees Valley Lithium, that is the mission we are driving forward.
Tonight, we are joined by two of our most important partners: Veolia and Wave International. They represent something powerful: not just technology and engineering, but the idea that when the right partners come together with a shared purpose, the impossible becomes achievable.
Now, in terms of our progress.
Our FEED study is in its final stretch. Months of engineering, design and operational planning have brought us to a point where our focus now shifts from designing to constructing. Every part of the project is moving, in parallel, with purpose, and with pace.
And when we reach first production in early 2028, we will be doing far more than producing battery-grade lithium. We will be creating skilled jobs, anchoring supply chains, strengthening gigafactories, and positioning Britain as a credible, competitive player in global battery materials.
Which is why tonight feels hopeful.
Because when government, industry, investors, engineers and innovators come together, when partners like Veolia and Wave stand alongside a region like Teesside, we unlock the kind of industrial capability that Britain needs to compete and win.
So my message is simple.
Britain can do this.
Teesside can do this.
And together, we are already doing it.
Thank you and I look forward to speaking with many of you this evening about how we can all be part of the next chapter of Battery Britain.
Vikki Jeckell
CEO Tees Valley Lithium
The UK Government has released its refreshed Critical Minerals Strategy – Vision 2035, setting out a renewed national plan to secure the minerals essential for clean energy, advanced manufacturing and industrial resilience. The strategy establishes clear demand projections, domestic production targets and a firm commitment to strengthening supply chain security through a combination of domestic capability and international partnerships.
Critically, lithium is placed at the heart of the UK’s long-term industrial future, with the Government highlighting that lithium demand is expected to rise by 1,100 percent by 2035. The strategy sets a dedicated ambition for lithium: producing 50,000 tonnes of lithium (LCE) domestically by 2035, representing roughly 15 percent of national demand. This heightened focus reflects lithium’s central role in electric vehicles, battery energy storage, and the wider clean energy transition.
Teesside is also recognised as one of the UK’s regional strengths for critical mineral processing, a significant validation of Tees Valley Lithium’s decision to anchor the UK’s flagship lithium hydroxide refinery on Teesside. The strategy places strong emphasis on the UK’s competitive advantage in midstream processing, precisely the part of the value chain TVL is delivering.
New policy measures, including the proposed extension of energy support schemes, are welcome steps that create a more attractive environment for the large-scale investment the UK will require. While additional support will be necessary to meet the UK’s ambitious 2035 targets, the direction of travel is clear: domestic refining capacity is now recognised as a strategic national priority.
For TVL, this strategy provides powerful confirmation that our approach has been the right one from the outset. Established well before the publication of Vision 2035, TVL has been progressing at speed — and the Government’s updated framework now firmly aligns with our mission to build a flexible, future-ready and globally competitive lithium refinery on Teesside.
Download our full review of the new Strategy here.
UK Critical Minerals Strategy in Full
Tees Valley Lithium (TVL) has launched its Supplier Expression of Interest (EOI) process as the company continues to progress its Front-End Engineering Design (FEED) study for the UK’s first large-scale lithium hydroxide refinery.
The new Supplier EOI Portal provides an opportunity for businesses of all sizes to register their interest in supporting the project’s delivery, construction, and future operations. Companies are invited to select all relevant project categories and services they can offer – from civil engineering and fabrication to logistics, maintenance, and specialist chemical services.
Once registrations are received, the TVL team will review submissions and issue Pre-Qualification Questionnaires (PQQs) to suitable suppliers. This process will help build a strong and diverse local supply chain to support the refinery as it moves towards its Final Investment Decision (FID) in early 2026.
Pauline Sumner, Project Procurement of Tees Valley Lithium, said:
“This is an exciting time for Tees Valley Lithium and the broader Teesside region. We’re calling on suppliers, both established industry players and local SMEs, to register their interest and become part of this landmark project for the UK battery materials industry.”
To learn more about upcoming opportunities, please click the link below to access the registration form.
ABG Sundal Collier engaged to lead Train 1 financing
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.
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.
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.
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."
At Alkemy Capital, we’re entering a pivotal chapter in the journey of Tees Valley Lithium (TVL). As we move deeper into the FEED phase and lay the groundwork for construction, our Chairman, Paul Atherley, has shared a personal message about why he’s chosen to stand behind this next stage.
Here’s what he has to say:
"Over the past few months, we’ve made meaningful progress behind the scenes, and today I want to personally share why I’ve chosen to back the next phase of development for Tees Valley Lithium.
We’re now deep into the FEED study, with engineering and cost work progressing well. We’ve secured our feedstock, have advanced discussions with Tier 1 off takers, and continue to work closely with ABG Sundal Collier on the debt financing package.
Alongside that, we’ve been working with Ara Partners, a credible, specialist investor focused on industrial decarbonisation, who have undertaken months of technical, commercial, and strategic due diligence. That process has now led to an indicative term sheet outlining their interest in leading the full $100 million equity investment at the construction stage.
This progress has given me the confidence to personally back the FEED phase. Through a secured £5 million facility, Alkemy can fund the fullFEED study while retaining 100% ownership of TVL, ensuring we protect early-stage value for shareholders and only introduce external equity when it matters most.
The proposed structure with Ara, currently in final negotiation, includes a right of first refusal framework and a clear milestone path aligned with our Final Investment Decision (FID) in Q1 2026. It gives Ara the option to deploy capital at construction and gives Alkemy the ability to advance TVL with strong institutional alignment.
We’d like to thank Ara Partners for their detailed engagement to date and the time and expertise they and their advisors have committed to the process. We look forward to continuing to work closely together as we progress toward construction."
Join Us: Shareholder & Investor Webinar
We’ll be hosting a live investor webinar where I’ll be joined by TVL CEO, Vikki Jeckell, to share more detail on the FEED progress, funding structure, and next steps toward FID and construction.
Date: Tuesday 5th August 2025
Time: 12:00pm BST
Register here: https://us02web.zoom.us/webinar/register/WN_L4ss1hPrQtKS_53rPp5gxA
We’re proud of the momentum building around TVL and excited about what’s ahead. Stay up to date with the latest project milestones, investor news, and company updates from Alkemy and Tees Valley Lithium - subscribe to our newsletter today.
Tees Valley Lithium Ltd. is a registered company in the United Kingdom. The company is committed to operating in accordance with applicable environmental, regulatory, and industry standards. All partnerships and activities are conducted with a focus on transparency, sustainability, and ethical business practices.
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