- Initial capital cost for Train 1 is estimated at £216m with a 2.9-year pre-tax payback period.
- The plant aims to produce 96,000tpa of battery-grade lithium hydroxide by 2030.
- Commercial production is expected to start by Q4 2024.
- The feasibility study indicates a post-tax NPV8 of £2.2bn and a post-tax IRR of 32.9%.
Project Overview
Alkemy Capital Investments plc has completed a feasibility study for a lithium hydroxide processing facility at Wilton International Chemical Park in Teesside, UK. The plant will process various lithium feedstocks to produce battery-grade lithium hydroxide for the European market.
Rationale
Europe is set to host over 35 battery gigafactories by 2035, but currently has no lithium hydroxide production capacity. Lithium hydroxide is essential for nickel-rich cathode chemistries used in electric vehicles. China controls 90% of the global supply, creating a significant carbon footprint due to transportation. This presents an opportunity for a local, low-carbon facility.
Facility Details
TVL plans to develop the UK's first major low-carbon lithium hydroxide monohydrate plant. The modular plant will process a range of imported, low-carbon lithium feedstocks, aiming to supply 15% of European demand by 2030. The facility will be powered by renewable energy and located in a Freeport zone, offering various incentives and direct market access.
Feasibility Metrics
The feasibility study by Wave International indicates a 30-year operation with peak production of 96,000tpa LHM, generating £49.2bn in gross revenues. Initial capital cost for Train 1 is estimated at £216m, with a post-tax NPV8 of £2.2bn, a post-tax IRR of 32.9%, and a 26% EBITDA margin. The pre-tax payback period for Train 1 is estimated at 2.9 years.
Timeline
TVL anticipates a fast-track timeline to first production, with main construction taking 12 months post-permitting, procurement, and financing. Commercial production is expected to begin by Q4 2024.
