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.
.png)
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.”
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.
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
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
.svg)
