4 December 2023

Alkemy Capital Investments Plc

TVL Secures Strategic Technology and Vendor Partnerships, Advancing Lithium Refinery Project

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) and its wholly owned subsidiary Tees Valley Lithium ("TVL") are delighted to announce significant milestones in the development of TVL's state-of-the-art lithium processing plant at the Wilton International Chemicals Park in Teesside, North East England.

HIGHLIGHTS: 

·    TVL has awarded preferred vendor status to industry-leaders JordProxa and Eurodia Industrie SAS, marking a pivotal phase in engineering and piloting for its Wilton lithium refinery.

·    TVL's Train 1 will implement the standard causticisation processing for producing battery grade lithium chemicals, with JordProxa as the chosen vendor for crystalliser technology. Trains 2, 3 and 4 will revolutionise lithium production with a low-carbon electrochemical processing route, with Eurodia providing cutting-edge electrochemical cells.

·    TVL's collaboration with Wave International as lead engineering and technical partner has enabled a rigorous selection of vendors, ensuring TVL is equipped with the most advanced and reliable technologies in the market.

TVL is delighted to announce a pivotal milestone in its Front-End Engineering and Design (FEED) related activities for the Wilton lithium refinery.

The completion of the technology selection process and the awarding of preferred vendor status to two industry leaders - JordProxa and Eurodia Industrie SAS - represent significant steps forward in the project's development.

These achievements not only underscore TVL's dedication to leveraging cutting-edge technology but also strengthen the project through partnerships with industry-leading vendors. This progress is instrumental in ensuring that TVL's refinery design is innovative, sustainable and optimized for efficiency.

Located at the Wilton International Chemicals Park in Teesside, UK, the home to chemical operations of Anglo American, SABIC and Huntsman, TVL is at the forefront of developing low-carbon lithium refining for the UK and European markets.

TVL's commitment to sustainability is exemplified by its adoption of an electrochemical processing route. This state-of-the-art technology, coupled with the utilisation of offshore wind energy, positions TVL to become a global leader in low-carbon lithium production, with the aspiration to achieve a zero-waste operation.

Wave International's industry-leading lithium expertise has enabled a comprehensive technical and commercial evaluation of crucial technology packages, leading to the selection of additional industry-leading partners, as follows:

·    JordProxa: Awarded preferred vendor status for the PLS evaporator, Glauber's salt/anhydrous sodium sulphate, and lithium hydroxide crystallisers. JordProxa will be key in establishing a hydrometallurgical process island for Train 1.

·    Eurodia Industrie SAS: Recognised for their innovation in electrochemical cells, Eurodia have been chosen as the preferred vendor for Train 2, underlining TVL's commitment to cutting-edge technology in lithium processing.

Ryan Hanrahan, CEO of Wave International commented:

"The award of these two packages is a key milestone as the project moves to progress FEED activities for Train 1 and piloting for Train 2. Through the testwork and detailed evaluations, we have been able to demonstrate that the key process equipment will meet the requirements of the flowsheet and enable production of an ultra-pure lithium hydroxide monohydrate product."

Nipen Shah from Jord Proxa commented:

"JordProxa are pleased to be working with TVL and Wave International. Our process technology for lithium hydroxide crystallisation is perfectly suited to this project, and the testwork to date has demonstrated excellent results. We look forward to progressing towards a final commercial agreement for what looks to be the UK's first large scale Lithium Hydroxide processing facility."

Mathieu Bailly from Eurodia commented:

"Eurodia are pleased to see TVL as a company embracing electrochemistry as a critical technology for next generation lithium hydroxide processing. With our technology well proven in many industries, the independent testwork done by TVL and other work we have completed on lithium processing provides for a low-risk technology solution for the project. We look forward to progressing the piloting works and further demonstrating the high purity product that can be produced from our equipment."

Vikki Jeckell, Director of Alkemy and Tees Valley Lithium commented:

"We are delighted to announce today a significant milestone in our journey. Awarding preferred vendor status to JordProxa and Eurodia is not just a testament to our commitment to excellence, but also a recognition of the innovative strides we are making in the industry.

Our partnerships with these industry leaders reflect our dedication to not only align with the best but also to drive forward the standards of lithium refining.  These collaborations are pivotal in our mission to innovate and deliver sustainable, efficient, and cutting-edge solutions in the field.

On behalf of the board, I extend our gratitude to our team, partners, and stakeholders who have been instrumental in reaching this milestone. We are excited about the future and look forward to continuing our journey towards excellence in lithium refining."

TVL Train 1 - Crystalliser technology package award - JordProxa

Train 1 utilises the standard causticisation process for the production of lithium hydroxide monohydrate. The flowsheet comprises conversion of various feedstocks if required, impurity removal, evaporation, glauber's salt crystallisation, anhydrous sodium sulphate crystallisation and multi-stage lithium hydroxide crystallisation followed by product handling and bagging.

The Class 4 study completed by Wave International as the lead process designer defined the crystallisation circuit parameters. JordProxa have considered these parameters and completed metallurgical testwork, producing high purity Lithium hydroxide Monohydrate.

On this basis, a crystallisation process island has been proposed which includes:

·    PLS evaporation;

·    Glauber's salt crystalliser;

·    Anhydrous sodium sulphate crystalliser; and

·    Multi-stage lithium hydroxide crystallisers.

The process island approach is a key aspect of the overall plant design, simplifying the procurement activities and reducing interface risk. This approach represents an evolution from what has been achieved by the recent Australian plants and incorporates significant learnings from those projects. This next generation of crystalliser design will provide for significant technical de-risking of TVL's project.

Based on the preferred vendor status, TVL Wave International and JordProxa will work together towards a finalised commercial contract including:

·    basic engineering and design (including modularisation);

·    process guarantees;

·    detailed manufacturing schedule including long lead milestones; and

·    further optimisation testwork and supply of pilot scale equipment.

The next phase of works planned is completion of basic engineering design, which is a critical activity to underpin Front End Engineering Design (FEED) for the balance of the plant and infrastructure.

Design for a pilot plant is also underway, which will produce sales and marketing samples to progress product qualification.

TVL Train 2 - Electrochemical cell package award - Eurodia Industrie SAS

Train 2 utilises an electrochemical process to produce lithium hydroxide from lithium sulphate or lithium carbonate. The front half of the flowsheet is similar to the conventional process, with some additional impurity removal stages ahead of the electrochemical cells. The electrochemical cells use electricity (instead of a chemical reagent) to separate lithium sulphate into sulphuric acid and lithium hydroxide, which can then be crystallised into lithium hydroxide monohydrate. A similar, but simplified, crystallisation circuit is used for this final step.

This approach is suited to a facility which has access to abundant, cheap renewable energy and has the ESG benefits of:

·    removing the need for sodium hydroxide as a reagent (which is currently in high demand); and

·    removing anhydrous sodium sulphate as a bi-product

The sulphuric acid bi-product can either be concentrated and used to digest alternative feedstocks (or used in other low-specification applications) or converted to gypsum and used in local industry. It is noted that gypsum is currently imported at the adjacent PD Ports.

The separation of salts via electrochemical cells is a proven technology in water treatment, with a number of large-scale plants operating throughout Europe.

The Class 4 study by Wave International as the lead process designer defined the electrochemical  circuit parameters. Metallurgical testwork was completed in parallel at two specialist laboratories, including a membrane screening program in which Eurodia membranes were compared to others by an independent laboratory. This testwork independently showed the Eurodia technology to have superior lithium recovery and sulphuric acid quality and was a key factor in the technology selection.

Based on the preferred vendor status, TVL Wave International and Eurodia will work together towards a finalised commercial contract including:

·    Basic engineering and design;

·    Process guarantees;

·    Detailed manufacturing schedule including long lead milestones; and

·    Further optimisation testwork and supply of pilot scale cells.

TVL and Wave International are jointly finalising the technology development framework for Train 2, with the next stage being the completion of a pilot scale plant development. The supply of a pilot scale cell and progression of basic engineering design will be the next stages of engagement with Eurodia.

About Wave International

Wave International are a global consultancy firm, specialising in critical metals, with over 20 years of experience in lithium processing. Wave International are headquartered in Australia, with local operations in the UK and the Netherlands.

Wave International have been instrumental in the development of advanced Australian Lithium Hydroxide projects and are also undertaking key roles in supporting the development of a number of high profile proposed European lithium refineries.

About JordProxa

JordProxa delivers custom crystallisation and evaporation plant and systems to produce ultra-pure battery chemicals.

As demand for lithium-ion batteries grows with the uptake of electric vehicles, its crystalliser systems are playing a key role in meeting the challenges of purity, sustainability and value.

About Eurodia Industrie SAS

The sooner the industry lessens its footprint, the further it will map its future. As a global specialist in eco-efficient, custom industrial processes for liquid purification, Eurodia is already designing and building the solutions for this future-proofed model.

The Eurodia Group's solutions serve to extract and purify lithium salts from various raw materials and recover lithium and other metals of interest (NMC / Ni Mn Co) for processes that manufacture or recycle electric batteries.

Further information

For further information, please visit the Company's website: www.alkemycapital.co.uk or www.teesvalleylithium.co.uk

-Ends-

ABOUT ALKEMY CAPITAL

Alkemy is seeking to establish independent and sustainable lithium hydroxide production by developing lithium sulphate and lithium hydroxide facilities in the UK and Australia.

Alkemy, through its wholly owned UK subsidiary Tees Valley Lithium, has secured a 9.6 ha brownfields site with full planning permission at the Wilton International Chemicals Park in Teesside, a major UK Freeport, to build the UK's first and one of Europe's largest lithium hydroxide processing facility.

Tees Valley Lithium has completed a Class 4 Feasibility Study for its proposed lithium hydroxide refinery which will process feedstock imported from various sources to produce 96,000 tonnes of premium, low-carbon lithium hydroxide or an equivalent amount of lithium carbonate annually, representing around 15% of Europe's projected demand.

Alkemy, through its wholly owned Australian subsidiary Port Hedland Lithium, has secured a 43.7 ha site at the Boodarie strategic industry area, near Port Hedland, Western Australia to build a world-class sustainable lithium sulphate refinery that will provide reliable feedstock for Tees Valley Lithium's refinery.

Port Hedland Lithium has completed a Class 4 Feasibility Study for its proposed lithium sulphate refinery, each train of which will process spodumene concentrate to produce 40,000 tonnes of lithium sulphate annually.

Forward Looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Alkemy provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Alkemy believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Alkemy will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.