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TVL has signed non-binding Heads of Terms with Canadian lithium developer E3 lithium, establishing the framework for a long-term tolling partnership covering up to 50,000 tonnes of battery-grade lithium hydroxide over a minimum 10-year term.
The partnership is another step in building a diversified portfolio of commercial relationships across the global battery materials supply chain. TVL is building a world-class merchant lithium refinery in the Billingham chemical cluster on Teesside. Converting high-value feedstock from a diversified domestic and international supply base into battery-grade lithium using Veolia's commercially validated process technology. At full Train 1 capacity, that is enough lithium to support the production of 550,000 electric vehicles a year.
Under the arrangement, TVL will convert lithium carbonate form E3's Clearwater Project in Alberta into battery-grade lithium hydroxide at Teesside. It follows the binding offtake agreement signed with Glencore plc in January.
A Strategic Partnership with a Leading Canadian Lithium Company
Based in Alberta, Canada, E3 Lithium is developing one of Canada's largest lithium resources at its Clearwater Project. This partnership combines Canadian lithium production with UK refining capability, demonstrating how trusted international partners can build resilient battery materials supply chains together.
The Merchant Refining Model
Unlike integrated refiners tied to a single mining asset, TVL's merchant model enables the refinery to process material from multiple independent producers through a tolling commercial structure. The £185 million refinery combines some of the world's lowest projected capital and operating costs, giving Tier 1 customers a proven path to cut their dependency on China and competitively priced access to the European lithium market. For producers like E3, it offers dedicated battery-grade conversion to support E3's European customers.
Delivering on UK-Canada Critical Minerals Ambitions
The UK and Canada signed a critical minerals cooperation agreement in 2023, and in June 2025 G7 leaders launched the Critical Minerals Action Plan, in Alberta, the home of E3's Clearwater Project. Both governments have identified secure, diversified supply chains built around trusted partners as a strategic priority. By combining Canadian lithium resources with UK refining capability, TVL and E3 Lithium are demonstrating the commercial partnerships needed to turn those agreements into industrial reality.
Production at Teesside will scale from an initial 25,000 tonnes to over 100,000 tonnes per annum, making TVL one of Europe's largest lithium refineries, and giving Teesside and the UK a leading role in one of the biggest industrial transitions in history.
Sir Chris Bryan, MP and UK Minister of State at the Department for Business and Trade, commented:
"This is our Critical Minerals Strategy in action: forming dynamic relationships with partners across the world to boost our economic security and helping build more sustainable and diversified supply chains for critical minerals."
Gemma Cooper, Chief Commercial Officer, commented:
"Our merchant refining model is design to support a portfolio of commercial partnerships across the global lithium industry. Building on our binding offtake agreement with Glencore and feedstock agreements covering both virgin and recycled materials, the Heads of Terms with E3 Lithium is the latest step in TVL's strategy to build resilient battery materials supply chains, served by our independent refining capacity at Teesside."
The Heads of Terms is non-binding and there can be no certainty that a definitive agreement will be concluded. For full details, please refer to the RNS announcement dated 8 July 2026, available here.
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