TVL takes Europe's refining seat alongside CATL, BASF and ACC

Indicative US$150 million debt terms for Teesside lithium refinery

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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.

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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.

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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.

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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.

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TVL remains in discussions with other prospective lenders and will select the structure offering the best terms for the project and for shareholders.

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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.

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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."

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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.

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Read the full announcement from Alkemy Capital Investments plc: link to RNS

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Centre will give customers early access to representative product, shortening the time from first production to full commercial volumes at Train 1

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“Customers told us plainly what they need: our product in their hands, early,” said Vikki Jeckell, Chief Executive of Tees Valley Lithium.

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Tees Valley Lithium (TVL) is to establish a Qualification and Validation Centre at the Billingham Chemical Complex, Teesside. The move responds to requirements from existing and prospective customers, including cathode manufacturers, cell manufacturers and OEMs.

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Battery and cathode manufacturers validate a new supplier’s lithium hydroxide in their own production lines, a process that typically takes twelve months. For a new refinery, this usually begins once the plant is producing.

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The centre will give customers early access to representative battery-grade lithium hydroxide, so validation can run in parallel with the construction of Train 1, the first 25,000 tonne per year production train of TVL’s refinery at Billingham. This is expected to shorten the time from first production to full commercial volumes.

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The centre will be housed in an existing industrial building within the Billingham Chemical Complex. Its sampling line will replicate the Train 1 process configuration using Veolia’s process technology, so the product customers test is representative of the product the refinery will make. A customer and visitor area will allow customers and partners to review material and process performance at first hand.

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The centre will also allow TVL to validate a wider range of feedstock, including lithium recovered by TVL’s battery recycling partners. Recycled feedstock supports customers’ obligations under the EU Battery Regulation, which requires minimum recycled lithium content in new batteries from 2031, with batch-level traceability provided through TVL’s partnership with Circulor.

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Once complete, the centre will be able to process samples of lithium carbonate from Geothermal Engineering Limited’s demonstration plant in Cornwall, refining them to battery grade.

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Vikki Jeckell added: “Qualification now runs alongside the development of the refinery rather than after it, which brings forward the point at which customers can move to commercial volumes. It also lets us test mined, brine and recycled feedstock side by side, and show that UK lithium, including domestic Cornish lithium from GEL, can be refined to battery grade on Teesside.”

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Paul Atherley, Chairman of Alkemy Capital Investments, said: “The UK needs its own lithium-refining industry, and that industry will be built on the confidence of the customers it supplies. The Qualification and Validation Centre brings those customers to Billingham to work with TVL’s product firsthand. It is another practical step in building the world-class merchant lithium refinery the United Kingdom needs.”

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Our offtake partner came to Teesside to see where the UK's first large-scale independent lithium hydroxide refinery will be developed.

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Glencore, one of the world's largest commodity traders, visited Tees Valley Lithium's site at Billingham on 23 September 2026.

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Glencore signed a binding offtake agreement with TVL in January 2026, committing to buy battery-grade lithium hydroxide from our planned refinery. The visit gave Glencore the chance to see first-hand where that product will be made.

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Chief Commercial Officer Gemma Cooper and Chief Operating Officer Richard Rose hosted the visit. It began with a tour of the site, in the heart of the Billingham chemical cluster. TVL's technical and commercial team then took Glencore through product specification, quality assurance and the qualification pathway. These are the steps that prepare for supply under the offtake agreement.

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Vikki Jeckell, CEO of Tees Valley Lithium, said:

"Glencore is one of the most respected names in global commodities, and they have committed to buying our product. Having them on site in Billingham, seeing first-hand where it will be made, shows the strength of that partnership. Europe is investing billions in gigafactories, yet almost all the battery-grade lithium those plants will run on is refined outside the continent. Refining is where supply security is decided, and we're developing that capability right here on Teesside with partners of Glencore's calibre alongside us."

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The visit follows the UK Government's offer in principle of up to £18.3 million of capital grant support for TVL under the DRIVE35 programme, announced on 17 September 2026.

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