A major lithium hydroxide refinery - touted as Europe's largest - is set to be built on Teesside following planning permission.
Tees Valley Lithium (TVL), owned by the London Stock Exchange-listed Alkemy Capital Investments plc, has secured planning approval from Redcar and Cleveland Borough Council for its proposed 96,000 tonnes per annum factory. Construction of the factory at the Wilton International site is now due to start 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. It has said the factory will bring 1,000 jobs to the area and has previously suggested it could generate gross revenues of £49.2bn.
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TVL says the refinery will be capable of producing both lithium hydroxide and lithium carbonate sourced from imported high grade feedstock from South America and lithium producers in Australia, among other locations.
The firm has also said it is in advanced discussions with a number of potential customers including European gigafactory operators and vehicle manufacturers. It said that once fully scaled up, the Teesside factory will have the capacity to produce all of the UK's lithium hydroxide requirement.
Sam Quinn, director of Alkemy, said: “The full endorsement from the Redcar & Cleveland Borough Council is a critical step in taking TVL to its next phase of developing the UK’s first lithium hydroxide refinery and spearheading a brand-new industry in Europe and a vital part of the Fourth Industrial Revolution.
"This decision allows us to rapidly advance with our engineering studies ahead of construction, due to commence in 2023. The burgeoning demand from electric vehicle OEMs highlights the urgent need for significant lithium refinery capacity in Europe, which currently does not exist.
"Our strategic decision to locate in the Wilton International Chemicals Park, with direct access to comprehensive infrastructure and services and within the Teesside Freeport enables us to get into first production by 2025 and begin supplying our low carbon battery-grade lithium to customers spanning the UK and Europe.”
Ben Houchen, Tees Valley mayor said: "Tees Valley Lithium is yet another multi-million-pound project, creating good-quality jobs on the Teesside Freeport. With plans now approved this shovel ready project will create 1,000 jobs and should be up and running in just a couple of years."
Frans Caljé, chief executive officer of PD Ports, added: "It’s absolutely fantastic to see more inward investment coming to the Tees Valley, this time in the form of the Tees Valley Lithium project. PD Ports absolutely welcomes any project that is going to generate real jobs and prosperity for our region and we look forward to seeing the lithium hydroxide refinery brought to fruition to aid growing demand as we all work towards a more sustainable future."
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