A planned lithium hydroxide factory at Teesside Freeport that would supply UK gigafactories could source the vital element it needs from nearby mines in County Durham.
Tees Valley Lithium - which hopes to bring a multimillion-pound processing plant to the Wilton International site - has signed a memorandum of understanding with Weardale Lithium Ltd, which owns the exclusive access to two boreholes in the county, where high lithium levels have been detected. The firm plans to extract lithium from geothermal waters found beneath the Eastgate Quarry site.
Under the agreement, both companies are investigating ways to supply this "green" form of lithium into the planned Teesside plant, which aims to supply about 15% of the chemicals needed for the growing production of electric vehicles in the UK and across the EU by 2030. Last month, the UK's first ever Critical Minerals Strategy was published by the Government, identifying lithium and pointing to a 400% year-on-year price rise caused by rapid growth in global demand.
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Tees Valley Lithium pointed to transport cost efficiencies, supply assurances and environmental gains over foreign suppliers in its announcement of the partnership with Weardale. However, Alkemy Capital Investments - the parent of Tees Valley Lithium - announced earlier this month that it will build a lithium sulphate plant on the coast of Australia to supply the planned Teesside facility.
Ultimately, the firm hopes to supply some of the 325,000 tonnes of lithium hydroxide projected to be needed for electric vehicle battery gigafactories across Europe. It has said discussions are underway with battery and vehicle manufacturers though no supply deals have yet been announced.
Stewart Dickson, CEO of Weardale Lithium, said: "Weardale Lithium has the objective to become a UK supplier of lithium from geothermal brines. Our partnership with Tees Valley Lithium is another important step in developing an integrated and coherent supply of lithium in North East England. In order to accelerate the adoption of electric vehicles and meet net-zero targets, the UK needs to secure supply of lithium for refining and production of battery-grade lithium hydroxide and lithium carbonate.
"This collaboration with Tees Valley Lithium is highly-beneficial for both parties as we both seek to maintain the momentum behind the development of the battery ecosystem in the North East. This builds on the region’s existing strengths in electrification, automotive and advanced manufacturing and enhances the North East’s position at the forefront of electrification technologies.
"Local supply of high-value critical minerals products should support the development of the electrification revolution for years to come, generating highly skilled science, technology and engineering opportunities and at the same time, reducing the environmental impacts and supply risks of imported raw materials. This is potentially win-win for both companies and the North East”.
John Walker, CEO of Tees Valley Lithium said: “Tees Valley Lithium is in the process of establishing a world-class Lithium Hydroxide production at the Wilton International Chemicals Park, located in the Teesside Freeport, in order to supply the burgeoning demand from Gigafactories in the UK and Europe.
"TVL will bring high value intermediate lithium products with a low carbon footprint from around the world, and provide customers in the UK and Europe with an independent and sustainable supply of battery-grade Lithium Hydroxide and Lithium Carbonate. We are pleased to be bringing back high value manufacturing to the North East and securing the critical minerals for the UK’s journey to Net Zero.”
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