Tees Valley Lithium Secures Up to GBP 18.3M Grant Funding

Tees Valley Lithium Secures Up to GBP 18.3M Grant Funding

Tees Valley Lithium has received an Offer in Principle for capital grant funding of up to GBP 18.3 million under the UK Government’s DRIVE35 Automotive Transformation Fund program. The funding would support Phase 1 of its planned merchant lithium refinery at the Billingham Chemical Complex in Teesside. The project is being developed by Tees Valley Lithium Ltd, which is owned by Alkemy Capital Investments plc. The offer remains subject to final approvals, while the company continues working with BIST to complete the outstanding due diligence and other conditions needed to access the proposed funding.

Phase 1 Lithium Refinery Capacity

Phase 1 of the Teesside refinery is expected to produce 25,000 tons per annum of battery-grade lithium hydroxide monohydrate. According to the project details, this planned production volume would be sufficient to support more than 550,000 electric vehicles each year. The facility is also designed with a longer-term expansion pathway that could increase production to more than 100,000 tonnes per annum. At full capacity, the development is expected to become one of Europe’s largest lithium refineries, establishing a significant domestic processing capability for battery-grade lithium hydroxide monohydrate.

UK Government Funding Supports Refinery Development

The proposed capital grant comes through the UK Government’s DRIVE35 Automotive Transformation Fund, linking the refinery project with the broader development of automotive and electric-vehicle supply capacity in the United Kingdom. The current Offer in Principle does not represent final access to the funding because approvals, due diligence, and remaining conditions must still be completed. TVL is therefore continuing its work with BIST before the funding can be accessed. The proposed support is specifically directed toward Phase 1 of the merchant lithium refinery at the Billingham Chemical Complex in Teesside.

Industry Impact & Outlook

The proposed funding could support the development of additional lithium refining capacity in the United Kingdom and strengthen the domestic processing side of the electric-vehicle battery supply chain. For the project, the immediate focus remains on completing due diligence, satisfying the outstanding conditions, and securing final approvals before the capital grant can be accessed. If Phase 1 progresses as planned, its targeted 25,000-ton annual output would provide material battery-grade lithium hydroxide capacity, while the longer-term pathway toward more than 100,000 tonnes per annum would increase the refinery’s potential scale. The development is therefore particularly relevant to automotive and battery supply chains connected with European electric-vehicle production.

Frequently Asked Questions

What funding has Tees Valley Lithium received?
Tees Valley Lithium has received an Offer in Principle for up to GBP 18.3 million in capital grant funding under the UK Government’s DRIVE35 Automotive Transformation Fund program. The proposed funding is intended to support Phase 1 of the company’s merchant lithium refinery at the Billingham Chemical Complex in Teesside. The offer is not yet final because approvals, due diligence, and other conditions remain outstanding. TVL is working with BIST to complete those requirements before the proposed funding can be accessed. Phase 1 is expected to produce 25,000 tons per annum of battery-grade lithium hydroxide monohydrate.