TVL Appoints Wates Group to Advance Pre-Construction

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.

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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

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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.

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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.

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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.

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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

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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