The October 2025 Company Update outlines major developments from the Front-End Engineering Design (FEED) phase through to market information from SC Insights. With construction scheduled to begin in mid-2026, TVL remains on track to deliver battery-grade lithium hydroxide by early 2028.
On Friday 10th July, we were delighted to welcome our local MP, Chris McDonald, to the future home of Tees Valley Lithium located in Billingham at the heart of the Teesside chemical cluster.
The visit gave the opportunity for the TVL team to explain in detail the plans for our refinery within the context of the established industrial cluster, as well as discussing the key policy priorities for the wider chemicals and process sector, such as ensuring competitive energy costs. As a politician with a background in Teesside industry, Mr McDonald showed a deep interest in the plans for the plant and the opportunities for local supply chain businesses to support the delivery of the project.
During the visit, Chris also heard from the team and Chairman, Paul Atherley, about the significant progress being made on commercial partnerships with customers and feedstock suppliers. Following the recently announced partnership with Canadian E3 Lithium, there was discussion of the range of domestic and international partnership opportunities the team are working on to secure a diversified lithium supply chain for UK and European customers. The £185 million merchant refinery will be one of Europe’s largest lithium refineries converting high value feedstock with full traceability, including feedstock from recycled sources, into battery grade lithium to support 550,000 electric vehicles annually.
Following a tour of the site and discussions with the team, Chris described Tees Valley Lithium as “a project of national importance…” in a region “…with the skills, infrastructure and logistics already in place” to support the building of a resilient critical minerals supply chain for the UK and Europe.
TVL CEO, Vikki Jeckell, commented “We are grateful that Chris made the time to visit and discuss our plans for the Billingham refinery in detail. There has been fantastic local support for the project and it was clear to our team that Chris is passionate about supporting the Teesside chemical and process sector to develop a new generation of opportunity for the area.”
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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Tees Valley Lithium has agreed Heads of Terms with Wates Group to progress a Pre-Construction Services Agreement, marking the transition of the Project into its pre-construction phase.
Wates is a family owned UK contractor with recent experience delivering major industrial facilities, including in the battery industry. Under the forthcoming Pre-Construction Services Agreement, Wates will work alongside the TVL team to advance detailed engineering coordination, construction planning, programme development and cost alignment in preparation for Main Contract execution.
With Front-End Engineering Design (FEED) now complete, the Project is moving into structured pre-construction execution. This phase will focus on:
• Detailed engineering coordination
• Construction methodology development
• Programme integration
• Procurement planning and long-lead equipment coordination
Early contractor involvement strengthens delivery readiness and enhances certainty around scope, sequencing and construction strategy.
Pre-construction activities are expected to commence in March 2026.
Following completion of the FEED study, which evaluated multiple site and tenure options, TVL has selected the 17.2-acre (7 hectare) New Road, Billingham site in Teesside as its preferred location.
Situated within an established chemical park with access to interconnecting utilities and services, the site provides the scale and infrastructure required for initial production and future expansion up to 100ktpa capacity. No material changes to the previously developed plant design are required.
All core workstreams remain aligned to previously announced timelines.
Advancing pre-construction and long-lead coordination at this stage positions the Project to support targeted initial equipment deliveries from early 2027.
TVL is committed to working with local suppliers and contractors wherever possible. Strong engagement at the Company’s supply chain event last year demonstrated the depth of industrial capability across Teesside, and the Project will continue to prioritise regional expertise as it progresses.
Vikki Jeckell, CEO of Tees Valley Lithium, commented:
“Transitioning into pre-construction marks a significant step forward for the Project. We are now moving from development into disciplined execution planning.
Working with Wates strengthens our delivery capability, and we look forward to collaborating with local suppliers and partners as we advance. This facility represents a major opportunity for the region, for our shareholders and for the wider UK battery materials supply chain.”
Tees Valley Lithium Ltd. is a registered company in the United Kingdom. The company is committed to operating in accordance with applicable environmental, regulatory, and industry standards. All partnerships and activities are conducted with a focus on transparency, sustainability, and ethical business practices.
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