Tees Valley Lithium (TVL) entered into an agreement with new Britishvolt owner Recharge Industries to supply tolled lithium hydroxide. It will come from its Teesside facility.
TVL’s owner Alkemy Capital Investments said under an agreement with Recharge, both companies will continue good-faith negotiations, aiming toward a definitive offtake and supply agreement.
Recharge gained preferred bidding rights at the weekend for failed battery company Britishvolt. It had been planning to build a £3.8 billion Gigafactory near Blyth in Northumberland, England.
The pair will work together to source lithium spodumene to be used in TVL’s refinery in Port Hedland, Western Australia. It will be converted to lithium sulfate for shipment to Teesside, England, for further processing. TVL’s lithium hydroxide refinery is claimed to be Europe’s largest.
Recharge said it sought the support of TVL to safeguard the supply of critical minerals into both its Geelong (Avalon) and Northumberland Gigafactories. The significant offtake envisaged under the agreement enables long-term planning and production forecasting and strengthens its own battery offtake agreements and existing supply chain.
Recharge will make its supply of lithium hydroxide available to its active cathode supplier with whom its holds a strong and strategic relationship.
TVL’s Teesside refinery is expected to produce enough lithium hydroxide to supply 100% of the forecast automotive demand in the UK by 2030, according to the statement.
The project has been granted full planning permission from Redcar & Cleveland Borough Council. Production is forecast to commence in 2025.
Recharge founder David Collard said: “This MOU links two like-minded companies to enable the critical mineral supply chain needed to build significant battery manufacturing capability in Australia, the US and the UK and underscores our intent to revive the fortunes of Britishvolt.”
TVL gained planning permission to build the Teesside refinery last November.
