Alkemy Capital Investments PLC on Tuesday said its subsidiary Tees Valley Lithium is teaming up with Recharge Industries Pty Ltd, the Australian company that is planning to buy the battery factory venture Britishvolt for £3.8 billion.

The memorandum of understanding between Tees Valley and Recharge aims to negotiate a definitive offtake agreement which would see Tees supply tolled low-carbon lithium hydroxide into Recharge’s qualified supply chain. It could include jointly sourcing spodumene for Tee’s processing facilities.

Tees has a lithium hydroxide refinery at Teesside in North East England, around 50 miles south of the planned battery factory in Blyth, Northumberland. Tees Valley calls itself ‘Europe’s largest independent and sustainable lithium hydroxide producer’.

This follows Monday’s media reports that Recharge Industries won a bid to buy British collapsed battery producer Britishvolt, which was planning to build a £3.8 billion factory in the UK to produce batteries for electric vehicles.

Alkemy Capital shares rose 2.0% to 257.00 pence each on Tuesday morning in London.

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