12 February 2026

Alkemy Capital Investments Plc

TVL Advances On-Site Lithium Recovery and Strengthens Domestic Recycled Supply

Alkemy Capital Investments plc ("Alkemy") (LSE: ALK) (JV2:FRA), the 100% owner of Tees Valley Lithium ("TVL"), is delighted to announce further progress in the development of TVL's lithium refinery through  agreements with Watercycle Technologies ("Watercycle"), a UK-based lithium recovery and processing company, and Circulor UK Limited ("Circulor"), a UK based global leader of enterprise Trust & Assurance and Digital Product Passport solutions for the EV and battery materials sectors.

The agreements advance the integration of on-site lithium recovery using deployed UK technology, with the potential to unlock up to c.US$16 million per annum of otherwise lost lithium value. They also establish a framework for up to 50,000 tonnes of additional recycled lithium feedstock and embed digital tracking capability at a batch level. Together these measures strengthen project economics, increase access to recycled feedstock and ensure future UK and EU Battery Regulatory compliance as TVL progresses toward construction. 

HIGHLIGHTS

·      MoU agreed with Watercycle to integrate on-site lithium recovery using their deployed UK modular technology, unlocking up to c.US$16 million per annum of additional value through improved lithium recovery

·      Recovery solution is intended to be developed under a Build, Own and Operate (BOO) model by Watercycle

·      Non-binding Heads of Terms agreed for the future supply of up to 50,000 tonnes of locally produced recycled lithium feedstock from 2028 for a over a Five-year period,

·      Recycled feedstock framework supports TVL achieving its target of a minimum of 20% recycled content in every tonne of LHM produced from first production  

·      Partnership with Circulor enables digital tracking at batch-level of feedstock origin and recycled content, ensuring full compliance with the EU Battery Regulation requirements for batteries placed on the EU market

On-Site Lithium Recovery

TVL and Watercycle have entered into a MoU to integrated on-site lithium recovery into the TVL refinery using Watercycle's deployed modular recovery technology.  Based on wastewater specifications and volume, the proposed recovery route is expected to enable the recovery of up to approximately 800 tonnes per annum of LCE, materially improving overall lithium yield and reducing losses typically associated with conventional refining. Unlocking up to c.US$16 million per annum of additional value through improved lithium recovery, based on long-term lithium index price of US$20,000 per tonne.

The modular recovery solution is expected to be delivered under a build, own and operate model which seeks to improve resource efficiency and project economics.

Recycled Feedstock Supply

Separately, TVL has agreed non-binding Heads of Terms with Watercycle covering the future supply of locally produced recycled lithium carbonate feedstock.

The Heads of Terms define the key commercial and technical parameters for a potential long-term supply arrangement, including product specifications, recycled content, validation and qualification processes, volumes of up to 10,000 tonnes per annum, and index-linked pricing principles.

This supply framework enables TVL to process additional recycled lithium material through the refinery, increasing recycled content and feedstock flexibility without altering the core process design.

Watercycle Technology operates Europe's first commercial Direct Lithium Extraction (DLE) plant, already producing lithium carbonate at its facility in Runcorn. Following extensive testing on lithium sources from around the world, the technology has demonstrated reliable and efficient performance on both subsurface brines and industrial wastewater streams. The successful scaleup and closure of its Series A funding, which included an Innovate UK Investor partnership grant, both completed in 2024, represent major milestones toward Watercycle's planned UK capacity of 50,000 tonnes tpa LCE by 2035.

Digital Tracking and Recycled Content Measurement

TVL has also partnered with Circulor, a UK based global leader of enterprise Trust & Assurance and Digital Product Passport solutions for the EV and battery materials sectors. Circulor works with prominent companies and their supply chains including Volvo Cars, Ford, and Panasonic. This partnership will deliver a digital tracking platform that records material inputs and outputs across the refinery and enables the measurement of recycled content at a batch level.

This capability allows TVL to evidence where material is sourced, how it is processed, and the recycled content contained in each batch of product. From 2027, EU battery regulations will require digital battery passports for batteries placed on the EU market, including verified information on material origin and recycled content.

From 2031, the EU battery Regulation mandates a minimum recycled lithium content of 6% in batteries placed on the EU market.  TVL is designing its operations to exceed this requirement from first production, targeting 20% recycled content, supported by on-site lithium recovery, access to recycled feedstock and batch-level digital tracking.

By embedding this capability early, TVL is positioned to meet future regulatory requirements and customer expectations without impacting refinery operations or project delivery.

TVL CEO Vikki Jeckell commented:

"These agreements mark a further step forward as we continue to move TVL forwards.  By partnering with Watercycle and integrating their on-site lithium recovery, we are improving overall lithium yield and strengthening project economics without increasing capital intensity. Alongside this, our framework for recycled feedstock positions TVL at the forefront of compliant, low-carbon lithium supply in Europe.

Partnering with Circulor ensures we have industrial-scale digital infrastructure in place to track material flows and accurately measure recycled content at a batch level. Circulor's platform is already used by global leaders including Volvo Cars, Ford and Panasonic, giving us confidence that TVL is building to the standards expected by the world's leading battery and automotive customers."

Watercycle Technologies Co-Founder Sebastian Leaper commented:

"We are pleased to formalise this long-term partnership with Tees Valley Lithium, marking an important step in scaling sustainable lithium recovery in the UK. Our modular extraction technology, which is already deployed and operating within the parameters to meet TVL's requirements, will support both feedstock supply and onsite process waste recovery, maximising resource efficiency and strengthening the development of a resilient, low carbon battery materials supply chain. We look forward to continuing our close collaboration as the project progresses."

Circulor UK Limited, CEO Giles Palmer commented:

"We are delighted that Tees Valley Lithium has chosen Circulor to help them implement their Digital Product Passport and to establish and prove the provenance of their products.  Knowing and proving where mined and recycled feedstock comes from and how they move through their supply chain is what regulators and customers now expect.  Our partnership with TVL will enable them to demonstrate that their lithium products meet the highest standards of responsible sourcing and sustainability."

Further information

For further information, please visit Alkemy's website: www.alkemycapital.co.uk or TVL's website www.teesvalleylithium.co.uk).

-Ends-

ABOUT US

Alkemy Capital Investments plc: Alkemy is focused on the development of critical mineral infrastructure to support the global energy transition. Through its wholly owned subsidiary, TVL, Alkemy is leading the way in establishing Europe's first independent lithium hydroxide refinery.

Tees Valley Lithium Limited: TVL is dedicated to providing battery-grade lithium chemicals to meet the growing demand of the electric vehicle supply chain in Europe. Strategically located at in Teesside, TVL is committed to sustainable, efficient, and world-class operations.

Watercycle Technologies Limited: Watercycle Technologies is a UK climate‑tech spin‑out from the University of Manchester developing proprietary Direct Lithium Extraction and Crystallisation (DLEC™) technology. The company recovers battery‑grade lithium from UK brines and industrial wastewater, supporting secure, sustainable domestic supply. For further information see: www.watercycletechnologies.com.

Circulor UK Limited: Circulor is a UK-based technology company founded in 2017 and the global leader in Digital Product Passports, Battery Passports, and enterprise Trust & Assurance solutions. Its SaaS solution enables supply chain traceability and Digital Product Passport solutions to help businesses track materials, support responsible sourcing, and meet sustainability and regulatory requirements. Its platform enables end-to-end visibility of complex supply chains and is used by leading organisations to manage product-level data, demonstrate compliance, and support circular economy objectives.   

Forward Looking Statements

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