Shares in Alkemy Capital Investments PLC (LSE:ALK) rose 15% on Monday after the company confirmed major progress on its Tees Valley Lithium project, including successful process validation, a firm $250 million capital budget, and improved financial forecasts.
Updated modelling values the project at $764 million after tax, with a 41% internal rate of return and a three-year payback.
Planned capacity has been increased slightly to 25,000 tonnes per year without raising capital costs, thanks to process efficiencies and design tweaks.
Test work carried out with partner Veolia confirmed the plant can produce battery-grade lithium hydroxide that meets the specifications of global cathode manufacturers. Commercial talks with a European battery cell producer are also moving forward.
Alkemy expects to make a final investment decision by the end of 2025, with production targeted for 2027.
The company described the project as “high-margin, scalable and strategically important” for the UK and European battery supply chain.
The stock rose 19.75p to 150p.