Alkemy Capital Investments plc (LSE: ALK), the 100% owner of Tees Valley Lithium Ltd (TVL), has announced that it has received indicative terms from a US-based financial institution for a senior secured credit facility of up to US$150 million towards financing Train 1 of its lithium hydroxide refinery at Billingham, Teesside. The development builds on TVL's previously announced DRIVE35 capital grant Offer in Principle of up to £18.3 million, which the company describes as the cornerstone of the Train 1 financing. Together, the indicative debt terms and the grant offer are said to represent the majority of funding required for Train 1, with the balance expected to be met through equity. Investors will be watching closely as the company progresses towards financial close and targets on-site works before the end of 2026.

Key Points

  • Alkemy Capital Investments plc (LSE: ALK)
  • TVL has received indicative terms for a senior secured credit facility of up to US$150 million from a US-based firm for its Billingham lithium hydroxide refinery Train 1
  • Combined with the £18.3 million DRIVE35 grant Offer in Principle received in September 2026, the two funding sources represent the majority of Train 1's financing requirement
  • Investors should monitor progress towards financial close, finalisation of lender terms, and the commencement of on-site works targeted before the end of 2026

TVL's Train 1 at Billingham to Produce 25,000 Tonnes of Battery-Grade Lithium Per Year

TVL is developing a merchant lithium hydroxide refinery within the Billingham chemical cluster in Teesside, with a planned capacity of 25,000 tonnes per year of battery-grade lithium hydroxide — sufficient, the announcement states, to support production of 550,000 electric vehicles annually. The refinery, described as an £185 million project, will use Veolia's commercially validated process technology to refine domestic and international feedstock. Train 1 represents the first production unit of that facility, and its financing is being structured at the project level through a combination of senior debt, equity, and grant funding.

US$150 Million Indicative Credit Facility Adds to £18.3 Million DRIVE35 Grant Cornerstone

The indicative terms received from the unnamed US-based institution cover a senior secured credit facility of up to US$150 million. The announcement emphasises these terms are non-binding and remain subject to lender due diligence, credit approval, confirmation of equity and grant components, and definitive documentation. TVL continues discussions with additional prospective lenders to secure the most competitive terms. The DRIVE35 Offer in Principle of up to £18.3 million, announced on 17 September 2026, remains the cornerstone of the broader financing package, with equity expected to cover the remaining balance.

Billingham Site Purchase Progressing Alongside Financial Close as On-Site Works Targeted for Late 2026

The company states that the purchase of the Train 1 site at Billingham is progressing in line with financial close. TVL aims to commence on-site works before the end of 2026, representing a near-term operational milestone for investors to monitor. Alkemy has confirmed it will continue to update the market as financing discussions advance. The announcement includes a caution that there can be no certainty that any financing will ultimately be agreed or as to its final terms, reflecting the conditional nature of the indicative debt offer at this stage of the process.

Alkemy's Position as Sole Owner of TVL Within the UK Critical Minerals Sector

Alkemy Capital Investments is an LSE-listed investment vehicle focused on the UK critical minerals sector, holding a 100% ownership stake in TVL. The company is also listed on the Frankfurt exchange under the reference JV2. Chairman Paul Atherley's comments in the announcement highlight the strategic significance of attracting project-scale debt financing for a domestic lithium refinery, framing it as evidence that UK refining is regarded by lenders as a viable investment case within the broader energy transition. Alkemy's business model centres on generating shareholder returns from critical mineral infrastructure aligned with electric vehicle supply chain development.