Plans to build a major lithium hydroxide refinery on Teesside could secure Government money, the firm behind the scheme has indicated.
Tees Valley Lithium is due to start construction of its 96,000 tonnes per year factory at the Wilton International site - a move that could bring 1,000 jobs to the area. And in an update, the firm's owners Alkemy Capital Investments has told the London Stock Exchange that its expression of interest to the Government's £1bn Automotive Transformation Fund has been approved.
It means the project could receive future grant support from the fund which is designed to support the UK automotive supply chain's transition to Net Zero. Tees Valley Lithium's £200m refinery could supply up to 15% of European electric vehicle makers' required lithium hydroxide once it reaches capacity in 2030.
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Alkemy Capital Investments has marketed the project as a matter of strategic importance for the UK, which so far does not have any lithium production facilities. The majority of the world's supply is controlled by China, which is targeting carbon neutrality by 2060.
Work is already underway to ready a separate lithium hydroxide refinery at nearby Teesport, led by Green Lithium. That £500m facility is earmarked to be operational at a similar time to Tees Valley Lithium's plant.
Tees Valley Lithium director Sam Quinn said: "We welcome the first phase approval of our project proposal by the Automotive Transformation Fund and look forward to working with the UK Government on the development of our transformative lithium hydroxide project in Teesside, which will be central to the transition to electric vehicles in the UK and an important step on the journey to our Net Zero future."
Last week a parliamentary inquiry into the strength of the UK's electric vehicle battery production capabilities was announced by the Business, Energy and Industrial Strategy Committee. The move followed the high profile collapse of electric vehicle battery start-up Britishvolt, which had been promised £100m of grant funding from the Automotive Transformation Fund last year.
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