Alkemy Capital Investments Plc (LON: ALK) has announced that its wholly owned subsidiary, Tees Valley Lithium Ltd, has entered into non-binding Heads of Terms with Canadian lithium developer E3 Lithium Ltd for a proposed long-term refining partnership.
Under the proposed arrangement, E3 would use Tees Valley Lithium’s UK conversion capacity to process lithium carbonate from its Clearwater Project in Alberta into battery-grade lithium hydroxide for supply to E3 customers.
The framework covers up to 50,000 tonnes over an initial 10-year term.
Alkemy said the proposed partnership would give E3 access to battery-grade lithium hydroxide production in the UK and provide a route into the growing European market, while also supporting TVL’s independent merchant refining model.
The company said the agreement reflects growing cooperation between the UK and Canada on critical minerals and supports efforts to build more resilient and geographically diversified supply chains.
TVL is positioning itself as an independent lithium refiner within a transatlantic supply chain, with the proposed E3 partnership adding to its previously announced binding offtake agreement with a wholly owned subsidiary of Glencore for up to 10,000 tonnes per year of battery-grade lithium hydroxide.
Vikki Jeckell, chief executive of Tees Valley Lithium, said the proposed partnership represented another important step in demonstrating demand for TVL’s merchant refining model.
Chris Doornbos, chief executive and chair of E3 Lithium, said the agreement would provide the company with additional optionality as it negotiates with potential offtake partners.
He added that the framework could create a pathway to serve lithium hydroxide demand while E3 continues to focus on bringing its lithium carbonate production to market efficiently.
E3 Lithium has reported 21.2 million tonnes of lithium carbonate equivalent in Measured and Indicated resources, alongside 0.3 million tonnes of Inferred resources in Alberta.
Its Clearwater pre-feasibility study outlined a proven and probable reserve of 1.13 million tonnes of lithium carbonate equivalent, with a pre-tax net present value at an 8% discount rate of US$5.2 billion and an internal rate of return of 29.2%.
