Alkemy Capital Investments PLC said on Friday that its subsidiary Port Hedland Lithium Pty Ltd has formed a contract with Lithium Services Pty Ltd to develop a merchant refinery at Port Hedland, Australia, focussed on processing a new source of lithium feedstock.

Alkemy is a London-based company focussed on developing projects in the energy transition metals sector.

Alkemy said that its wholly-owned subsidiary Port Hedland Lithium has formed a memorandum of understanding with Lithium Services, a lithium engineering company.

PHL and LIS are in talks of developing a merchant lithium refinery which will allow miners to recover lithium from finer materials. This refinery will be located at the Boodarie strategic industrial area in Australia will allow spodumene producers direct access to the European battery market.

PHL and LIS will enter a 90 day scoping study, and if successful have proposed to enter into a binding engineering, technology and cooperation agreement providing for the parties to collaborate for a feasibility study.

PHL have agreed to fund 100% of the cost of the feasibility study.

Director Sam Quinn said: ‘We are delighted to be working with LIS, a world leading lithium engineering and technology company, to examine this exciting opportunity to develop new lithium processing solutions for miners in Australia.’

LIS Executive Director Jeremy Chang added: ‘We look forward to working with PHL to examine this unique opportunity in the near future with a view to developing a world leading lithium refinery at Port Headland that will unlock a major new source of lithium feedstock for PHL.’

Alkemy were trading down 11% at 210.00 pence on Friday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.