18
March 2025
Alkemy Capital Investments
Plc
TVL
Enters Exclusive
Negotiation Period for Long-Term Lithium
Supply
Alkemy Capital Investments
Plc ("Alkemy") (LSE: ALK) (JV2:FRA), the 100% owner of Tees Valley
Lithium ("TVL"), is pleased to
announce that TVL has entered into an exclusive negotiation period with Touchstone
Capital Partners ("Touchstone") to finalise a
long-term binding feedstock agreement for
over 100,000 tonnes of lithium carbonate equivalent
("LCE").
This agreement, if secured, would
provide the primary lithium feedstock to fully support at least the
first five years of production at TVL's refinery, producing 24,000
tonnes per annum of battery-grade lithium hydroxide.
Alongside this, TVL's existing Heads
of Terms with Wogen Resources Ltd ("Wogen") remains an important
element of its supply strategy, providing additional flexibility
and continuity as TVL ramps up operations.
Touchstone is fully financing the development of a high-grade lithium brine
project and this combination of supply sources will
ensure that TVL has a stable, long-term, and diversified feedstock
position, reinforcing its ability to deliver a secure and
sustainable lithium hydroxide supply chain for Europe's battery
industry.
This exclusive negotiation period
allows both parties to complete due
diligence, finalise key commercial terms, and structure a binding
feedstock agreement that will ensure a
secure and sustainable lithium
supply to support TVL's refining
operations.
HIGHLIGHTS
● Exclusive
negotiation period with Touchstone Capital to finalise a long-term
binding feedstock agreement for over 100,000 tonnes of LCE,
supporting the first five years of production.
● Exclusive
negotiation period will enable both parties to complete due
diligence and finalise the structure of a binding feedstock
agreement, ensuring a robust and long-term supply
partnership.
● Represents a key
milestone in de-risking TVL's supply chain, reinforcing confidence
in the sustainability and scalability of its Teesside
project.
Strengthening TVL's Supply Chain & Mitigating
Risk
TVL's lithium hydroxide refinery in
Teesside, UK, is set to become a leading independent lithium
refining facility, supplying battery-grade lithium to meet the
growing demand from electric vehicle and energy storage
manufacturers.
By securing exclusive negotiations
with Touchstone, TVL is taking a critical step forward in
establishing a stable, long-term, and transparent lithium
supply.
With lithium demand forecasted to
exceed supply from 2027 onwards, securing long-term feedstock
supply is critical for battery manufacturers and lithium
refiners.
About Touchstone
Touchstone Capital Partners is a
global investment platform dedicated to integrating industry and
finance. The firm has built a $100 billion+ project pool over 20
years, leveraging its expertise to identify and structure
large-scale investments across oil & gas, mining, supply
chains, and international trading. Touchstone provides structured
financial solutions through risk mitigation strategies, asset
management, and liquidity management, ensuring efficient capital
deployment across its projects. Through partnerships with global
industry leaders and financial institutions, Touchstone facilitates
the successful execution of high-value investments.
TVL
CEO Vikki Jeckell commented:
"This exclusive negotiation
period with Touchstone Capital is an important milestone in
securing a long-term, high-quality lithium supply for TVL. With
Touchstone fully financing the development of a lithium brine
project, we are taking a significant step toward establishing a
robust and sustainable supply chain for our Teesside
refinery.
If a binding feedstock agreement
can be reached, it is envisaged that this would provide the
necessary feedstock to support our first train of lithium hydroxide
production, reinforcing our commitment to delivering a secure and
transparent lithium supply chain for Europe's battery
manufacturers.
Additionally, this agreement
with Touchstone complements our existing relationship with Wogen,
creating opportunities to expand our collaboration, including
potential supply chain financing solutions, that will further
support TVL's refining operations".
Touchstone Capital Partners Vice President Niccolò Ravano
commented:
"We are thrilled to enter into this exclusive
negotiation period with Alkemy which we are sure will not only
result in the long term supply of Lithium stemming from our
underlying mining projects, but will also lead to a more
comprehensive cooperation between our two companies touching upon
several other areas, at a time when the mining world is back in the
spotlight for strategic and geopolitical
reasons."
Next Steps
During the exclusive negotiation
period, TVL will:
● Work closely with
Touchstone to finalise the structure of the long-term feedstock
agreement.
● Complete necessary
due diligence and commercial assessments to ensure a robust and
sustainable supply framework.
● Align feedstock
supply with TVL's refinery development timeline, ensuring a smooth
integration into future operations.
● Continue
engagement with strategic investors and offtake partners,
reinforcing confidence in TVL's long-term business
strategy.
Further updates will be provided as
developments progress.
Further information
For further information, please
visit Alkemy's website: www.alkemycapital.co.uk or
TVL's website www.teesvalleylithium.co.uk.
-Ends-
ABOUT US
Alkemy Capital Investments plc: Alkemy is focused on the development of critical mineral
infrastructure to support the global energy transition. Through its
wholly owned subsidiary, TVL, Alkemy is leading the way in
establishing Europe's first independent lithium hydroxide
refinery.
Tees Valley Lithium Limited: TVL is committed to supplying battery-grade lithium chemicals
to meet the growing demand of the electric vehicle supply chain in
Europe. Strategically located at in Teesside, UK, TVL is developing
a low-carbon, independent lithium supply chain for European battery
manufacturers.
Forward Looking Statements
This news release contains
forward‐looking information. The statements are based on
reasonable assumptions and
expectations of management and Alkemy provides no assurance that
actual events will meet management's expectations. In certain
cases, forward‐looking information may be identified by such terms
as "anticipates", "believes", "could", "estimates", "expects",
"may", "shall", "will", or "would". Although Alkemy believes the
expectations expressed in such forward‐looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include changes in market conditions,
changes in metal prices, general economic and political conditions,
environmental risks, and community and non-governmental actions.
Such factors will also affect whether Alkemy will ultimately
receive the benefits anticipated pursuant to relevant agreements.
This list is not exhaustive of the factors that may affect any of
the forward‐looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
forward-looking information.
