RE: FEED STOCK SUPPLIER = SP RISE ?15 Sep 2023 07:45
5th August 2022 9FOR QUALIFIED AND PROFESSIONAL INVESTORS ONLY
TVL has an MOU with Traxys to source/supply feedstock
► Source and supply. TVL has entered into a memorandum of understanding (RNS 21-7-2022)
with Traxys to source and supply lithium feedstock for TVL’s planned processing facility in
Teesside.
► Feedstock for Train 1. Under the MOU, Traxys has agreed to cooperate and collaborate with
TVL to source and supply lithium feedstock for train 1 (24,000tpa LiOH) of TVL’s processing
facility located at the Wilton. TVL plans to commence construction of Train 1 later this year.
Based on our own modelling assumptions and chemically derived ratios, we estimate that
this could imply an LSM feedstock requirement of just under 40,000tpa.
► De-risking. The ability to consistently source feedstock at an appropriate cost is one of the
primary risks of the planned operation, in our view. Consequently, we see this MOU with
Traxys as helping to significantly de-risk the project.
► Traxys is a major player. Traxys is a leading, privately owned, physical commodity trader and
merchant in the metals and natural resources sectors. Its logistics, marketing, distribution,
supply chain management, and trading activities are conducted by over 450 employees in
over 20 offices worldwide, with annual turnover in excess of US$8bn.
► Lithium business expanded. Traxys sources and finances raw materials in every major
market but recently the group expanded its lithium trading business as part of a commitment
to continue building its technology and battery materials franchise globally. Traxys Europe
recently joined the International Lithium Association, an industry membership organisation
dedicated to ensuring that Lithium is ethically supplied worldwide and to share best practices
in determining and achieving lithium supply chain efficiencies. In 2019, Traxys established a
battery materials joint venture the Pallinghurst Group to invest in large, low-cost projects
predominantly located in investment grade jurisdictions across North America, Europe and
Australasia. The JV focuses on the entire value-chain, from sourcing raw materials to
managing the beneficiation and value-add process, as it supplies battery grade materials to
major battery makers and their intermediate suppliers globally. Traxys also has offtake
agreements with various companies including Lepidico (ASX: LPD) and European Lithium Ltd
(ASX: EUR).
► Other supply initiatives. TVL is also investigating the possibility of building an intermediate
lithium product refinery in Western Australia. The rationale would be to act as a regional
refinery hub which could take existing SC6 material from the plethora of Western Australian
spodumene producers. This spodumene concentrate could then be refined into an
intermediate product such as LSM before shipping to TVL’s refinery in the UK. We don’t have
any more details of this initiative yet, but it makes sense given
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