TVL Advances Yield, Recycled Content and Traceability

Tees Valley Lithium FEED Outcomes Confirm Low-Cost, Finance-Ready Project

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.

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Low-cost position confirmed by independent analysis

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.

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Strong, predictable project economics

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.

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Built to serve Europe’s battery demand

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.

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Major de-risking milestone achieved

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.

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Commercial validation in place

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.

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Next steps

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.

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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.  

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Keynote Speech Transcript:

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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These are not small hurdles.
They are structural disadvantages, the kind that would make most companies choose not to build here at all.

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And yet, despite all of those challenges, Tees Valley Lithium is proving that it can be done and can be done well.

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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.

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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.

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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.

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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.

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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.

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Vikki Jeckell

CEO Tees Valley Lithium

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