Tees Valley Lithium secures £18.3m grant for Billingham refinery

Tees Valley Lithium has received an offer in principle for up to £18.3 million from the government automotive transformation fund to support its planned refinery in Teesside. The funding, earmarked for investor Alkemy, will be directed toward Phase 1 of the merchant lithium refinery located at the Billingham Chemical Complex. The company is currently seeking a total of £185 million in funding to complete this initial stage of development.

The grant remains subject to final approvals, with the firm working alongside the Department for Business, Innovation and Science to complete necessary due diligence and conditions. Once operational, Phase 1 is expected to produce 25,000 tonnes per annum of battery-grade lithium hydroxide monohydrate. This output is sufficient to supply more than 550,000 electric vehicles annually, with additional lithium intended for energy storage projects across the United Kingdom.

The wider £2.5 billion automotive transformation fund aims to establish a competitive and sustainable electric vehicle supply chain domestically. Tees Valley Lithium has already secured offtakers including Glencore and signed a feedstock agreement with Wogen Resources. Minister for Reindustrialisation Blair McDougall described the investment as encouraging, noting it demonstrates the potential for refining critical minerals in Britain to support zero-emission vehicle manufacturing. He highlighted Teesside’s industrial heritage and the role of such companies in its future.

Vikki Jeckell, chief executive of Tees Valley Lithium, stated that the grant represents a statement of confidence in the region. She noted that Phase 1 alone accounts for nearly half of the 2035 target for domestic lithium refining capacity set by the Critical Minerals Strategy. The company has previously estimated that the proposed refinery could generate £2.1 billion in economic growth for the UK, with £1 billion benefiting the Teesside region. The project is also projected to create approximately 1,700 jobs, including 1,100 during construction, 66 direct operational roles, and 517 within the wider supply chain.