Alkemy Capital Investments on track to secure lithium project funding

(Alliance News) - Alkemy Capital Investments PLC on Monday said conversations regarding financing and partnerships for its lithium projects are advancing positively.

The London-based investment vehicle focuses on investing in the critical minerals sector.

Chair Paul Atherley said: "Alkemy continues to make good progress on a number of fronts. The growing interest in Tees Valley Lithium [Ltd], particularly from prospective UK customers, is very encouraging. We are excited about the potential for the technology partnership with scope for both capital and operating cost reductions. Our main focus remains on progressing the mezzanine financing which is well advanced."

ACI said discussions with financial institutions regarding project-level financing for a refinery belonging to subsidiary company, Tees Valley Lithium, are advancing with multiple potential lenders shortlisted.

The USD300 million approximate capital cost is expected to be financed primarily through green bonds, combined with a mix of debt, grant funding, and equity finance.

"TVL in partnership with Weardale Lithium [Ltd], is actively exploring opportunities to strengthen the UK lithium supply chain through innovative research and development. TVL is making significant progress on a government-awarded R&D grant aimed at evaluating the lithium chloride and carbonate markets, as well as advancing processing technologies," ACI said.

The company is also undergoing discussions to collaborate with a lithium refining technology company to help accelerate the electrochemical process, reduce capital expenditure, and reduce operating expenses.

A newly announced collaboration, with Cornwall-based lithium resource owner Geothermal Engineering Ltd, will also explore opportunities to advance the companies' respective lithium projects through the exchange of information and the potential development of integrated supply chains within the UK.

"The battery materials market continues to show promising growth, driven by the accelerating adoption of EVs and renewable energy storage solutions. Despite recent price fluctuations and supply chain disruptions, the long-term outlook remains strong.

"TVL's lithium refinery in Teesside is expected to produce enough lithium hydroxide to supply 100% of the forecasted automotive demand in the UK by 2030, with a further 35% of its total production available for export to other countries in Europe and elsewhere," ACI added.

Alkemy Capital shares were down 4.4% to 55.00 pence each in London on Monday afternoon.

By Elijah Dale, Alliance News reporter

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