Mcap Vs the scale20 Apr 2023 15:09
Advanced detailed discussions are ongoing with several industry-leading lithium producers
(miners), well known automakers, global commodity trading houses and battery recyclers, to
supply Alkemy’s available trains and Alkemy is confident of completing on one or more of
these feedstock supply deals in the short term.
Government and industry continue to recognise the importance of Alkemy’s refineries
The Critical Minerals Association United Kingdom, a key interlocutor between the UK
Government and the critical minerals industry, has recently identified TVL’s lithium refinery
in Teesside as a case study project that in its opinion will form a key strategic component of
the UK’s critical minerals midstream processing and refining sector.
In addition, the UK Automotive Transformation Fund (“ATF”), which is designed to help fund
the UK’s automotive supply chain, has approved TVL’s initial expression of interest with a
formal decision due in the coming months. The ATF is a funding programme created to
support large-scale industrialisation and will invest up to £1 billion to develop a high-value
end-to-end electrified automotive supply chain in the UK. The ATF is a long-term programme
designed to enable the UK to build the world’s most comprehensive and compelling
electrified vehicle supply chain, supporting over 160,000 jobs and creating export
opportunities
TVL’s world-class zero waste lithium hydroxide refinery will form a significant component of
the UK’s transition to EVs and is expected to produce enough lithium hydroxide to supply
100% of the forecasted automotive demand in the UK by 2030.
Project funding discussions underway with several strategic groups
Alkemy is in discussions with a number of groups and financial institutions for the financing
of both of its refineries.
The $600m approximate capital cost of trains 1 for both refineries is expected to be financed
largely through green bonds (for which Alkemy will seek accreditation) combined with a mix
of debt and strategic equity finance at project level.
As securing feedstock is a key component for each project, these financing discussions are
expected to be concluded following the signing of one or more feedstock deals.
Whilst Alkemy’s goal has always been to mimimise dilution in the listed topco, it may also
seek to introduce one or more long term strategic partners who share in our vision of building
a global leader in lithium downstream processing and refining.
Dyor while the huge scale is still being unrecognised - 100% of the UKs lithium - $600mil funding for 2 refineries - "confident of concluding binding partnerships in the short term" 600million first years revenues alone before increasing to 1.2-2.4bn per year - 15mil mcap - everything is Major scale apart from the Mcap/valuation for now - more news to follow
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