Alkemy Capital. Share News (ALK)

(Alliance News) - Alkemy Capital Investments PLC on Thursday noted progress at its Port Hedland lithium sulphate refinery in Western Australia and Wilton lithium hydroxide refinery in Teesside, England, while commenting that the wider industrial outlook for lithium processing is "extremely robust".

Shares in Alkemy were up 16% to 206.20 pence each in London on Thursday afternoon.

Alkemy is a London-based firm focussed on developing projects in the energy transition metals sector.

It said its Port Hedland refinery is "advancing rapidly", with land secured at the Boodarie strategic industrial area, alongside multinational companies such as London-based BP PLC, Pohang, South-Korea-based Posco and Perth, Australia-based Fortescue Metals Group Ltd. It said the environmental and planning approvals process, alongside feasibility and engineering studies, are underway at Port Hedland.

Meanwhile, Alkemy said its Wilton lithium hydroxide refinery within Teesside Freeport, England has received environmental and planning permission and is "shovel ready", with final front-end engineering and design studies underway. It claimed Wilton, via its wholly-owned subsidiary Tees Valley Lithium Ltd, is "world class" and "one of Europe's largest and most advanced" lithium hydroxide refineries.

Alkemy also said it secured a lithium offtake agreement with Recharge Industries, the new owner of Britishvolt, to supply tolled low-carbon lithium hydroxide, with other European offtake deals currently being advanced

This is alongside project financing discussions advancing with multiple potential providers of debt, strategic equity and green bond finance.

"Since the inception of our company little over a year ago, we have made incredible progress in advancing both of our lithium refinery projects, including securing key sites in Teesside and Port Hedland, receiving planning and environmental permissions, establishing offtake and other key strategic partnerships along with key governmental, industry and media recognition," said Non-Executive Director Sam Quinn.

"We continue to advance discussions with several key potential feedstock suppliers and consider that a binding deal with anyone or more of these parties would be a company-maker.

"We firmly believe that the quality of our offering as one of the world's lowest-carbon and Europe's largest refiners of zero waste battery-grade lithium hydroxide, together with the rapid project advancements made to date, stand us in good stead in these negotiations."

On the wider macro outlook, Alkemy said lithium processing was in an "extremely robust" position.

It argued that building a European lithium processing facility will reduce the regional dependence on China, which it said currently controls 90% of the world's lithium refining capacity.

By Greg Rosenvinge, Alliance News reporter

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