Shares in Alkemy Capital Investments surged 20% to 372p after its lithium refining business secured a major slice of UK government funding.
Tees Valley Lithium, which Alkemy wholly owns, has received an offer in principle for up to £18.3 million under the government's £4 billion DRIVE35 programme, which backs the shift to electric vehicles.
The grant is non-dilutive, meaning it does not require the company to issue new shares, and goes towards the £185 million first phase of a refinery at the Billingham chemical complex on Teesside.
That phase is expected to produce 25,000 tonnes a year of battery-grade lithium hydroxide, enough for more than 550,000 electric vehicles, with scope to scale up beyond 100,000 tonnes.
The award remains subject to final approvals and due diligence.
Chairman Paul Atherley said the plant would be one of the largest in Europe and would put the UK at the forefront of the energy transition.
The company framed the offer as another vote of confidence, following a binding offtake deal with commodities group Glencore and processing technology from Veolia.
Over 25 years, the project is forecast to contribute more than £2.1 billion to the UK economy and support over 1,700 jobs.
