The company behind plans to bring a 1,000-job lithium refining plant to Teesside has agreed the terms of a 30-year lease on the Wilton International site.
It follows Tees Valley Lithium gaining planning permission for the site, which it will begin to develop in 2023. The firm hopes to supply about 15% of Europe's electric vehicle production requirement for lithium hydroxide, which is used in vehicle batteries.
Under this latest agreement, Tees Valley Lithium has the option - open for up to a year - to enter into a long-term lease with Wilton owners Sembcorp Energy UK. In an update to investors, the firm said it expects financing, utilities and services arrangements to be completed well within that time.
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Andy Koss, CEO UK & Middle East, Sembcorp Industries, said: "It's great to see Tees Valley Lithium committed to Teesside and further supporting the net zero supply chain. At Wilton International, Sembcorp Energy UK is ready to welcome new businesses and jobs that will help enable the transition to a low-carbon economy."
Sam Quinn, director of Alkemy Capital Investments, the parent company of Tees Valley Lithium, said: "We are delighted to have agreed the terms of a Long Term Lease at the world-class Wilton International site in Teesside. This represents another significant milestone for Tees Valley Lithium as we seek to become Europe's first and largest independent and sustainable lithium hydroxide processing hub.
"We would like to thank the highly supportive team at Sembcorp Energy UK and look forward to working together with them as we develop and construct our refinery."
Once operational, the Tees Valley Lithium refinery will be the largest in Europe - producing 96,000 tonnes per annum of low-carbon battery-grade lithium hydroxide - enough to meet 15% of projected European demand.
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