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Indicative US$150 million debt terms for Teesside lithium refinery
Tees Valley Lithium has received indicative terms for up to US$150 million of senior debt towards Train 1 of its Billingham refinery, building on the £18.3 million DRIVE35 grant Offer in Principle from UK Government.
Tees Valley Lithium (TVL) has received indicative terms from a US-based firm for a senior secured credit facility of up to US$150 million towards Train 1 of its lithium hydroxide refinery at Billingham, Teesside.
Train 1 is the first 25,000 tonne per year production train of the refinery. The debt terms build on the Offer in Principle for a DRIVE35 capital grant of up to £18.3 million that TVL received from UK Government in September, the cornerstone of the Train 1 financing.
Together, the indicative debt terms and the grant Offer in Principle represent the majority of the funding required for Train 1. The refinery will be financed at project level through a combination of senior debt, equity and grant funding, with the balance to be met by equity.
TVL remains in discussions with other prospective lenders and will select the structure offering the best terms for the project and for shareholders.
The purchase of the Train 1 site at Billingham is progressing in line with financial close, and TVL aims to start on-site works before the end of 2026.
Paul Atherley, Chairman of Alkemy Capital Investments, said: "For decades the UK has built the cars and left others to make the materials that go into them. That is changing. When lenders put terms of this size on the table for a UK lithium refinery, it shows domestic refining is now seen as an investment case, not just a policy aspiration. We are now seeing plenty of interest to fund our lithium refinery and look forward to providing further market updates as these discussions advance."
The indicative terms are non-binding and subject to, among other things, lender due diligence, credit approval, the equity and grant components of the funding being in place, and definitive documentation. There can be no certainty that any financing will be agreed or as to its final terms.
Read the full announcement from Alkemy Capital Investments plc: link to RNS
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