Alkemy Capital Investments plc (Alkemy), the 100% owner of
Tees Valley Lithium (TVL), has entered into a non-binding Heads of Terms with
E3 Lithium Ltd (E3), a Canadian lithium development company, setting out the commercial framework for a proposed long-term refining partnership.
The Heads of Terms sets out the framework under which E3 would utilise TVL's UK lithium hydroxide
conversion capacity in the UK to convert lithium carbonate from its Clearwater Project in Alberta,
Canada into battery-grade lithium hydroxide for supply to E3's customers. The proposed arrangement would provide E3 with access to a Lithium Hydroxide supply chain to diversify both the geographical reach and the lithium chemistries available to it's customers, while further demonstrating demand for TVL's independent merchant refining model.
The proposed partnership gives commercial effect to the deepening cooperation among allied nations
on critical minerals, from the UK-Canada critical minerals cooperation agreement signed in 2023 to the G7 Critical Minerals Action Plan launched in Alberta in June 2025. By anchoring lithium conversion capacity in the UK, the partnership supports the UK Critical Minerals Strategy's ambition to grow domestic processing capability and reinforces TVL's position as an independent merchant lithium refiner at the heart of a resilient transatlantic supply chain.
The Heads of Terms builds on TVL's previously announced binding offtake agreement with a wholly
owned subsidiary of Glencore plc for up to 10,000 tonnes per annum of battery-grade lithium hydroxide and supports TVL's strategy of a diversified customer base.
Sir Chris Bryant, MP and UK Minister of State at the Department for Business and Trade,
commented: "We need critical minerals for everything, from the phones we use to the cars we drive, and this agreement brings to life our thriving critical minerals collaboration with Canada which will help boost domestic production, drive economic growth and build more resilient supply chains.
This is our Critical Minerals Strategy in action: forming dynamic relationships with partners across the world to boost our economic security and helping build more sustainable and diversified supply chains for critical minerals."
Vikki Jeckell, CEO of Tees Valley Lithium, added: "This refining partnership with E3 Lithium marks another important step in demonstrating the demand for Tees Valley Lithium's independent merchant refining model alongside our previously announced binding offtake agreement with Glencore."
Chris Doornbos, CEO and chair of E3 Lithium, said: "This agreement gives E3 meaningful optionality as we negotiate with potential offtake partners. This framework provides a potential pathway to serve hydroxide demand while we continuing to focus on our speed to market and enhanced capital efficiencies for our carbonate production. We look forward to our ongoing collaboration with TVL."