Stock still up nearly 50% in a month as investors bank gains
Shares in Alkemy Capital Investments PLC fell 5% to 397.49p on Tuesday as investors took profits following a strong rally, despite the company unveiling positive findings from its front-end engineering design (FEED) study for its planned lithium hydroxide refinery in Teesside.
The TVL project, led by Alkemy subsidiary Tees Valley Lithium, is projected to require capital investment of $243.6 million and generate annual earnings before interest, tax, depreciation and amortisation of $65.9 million, based on a nameplate output of 25,000 tonnes of battery-grade lithium hydroxide monohydrate.
Independent benchmarking by SC Insights found TVL’s projected capital intensity sits at the lower end of the global cost curve, well below that of peer European projects.
Operating costs are also expected to be among the lowest globally, benefiting from site ownership, modular design and Veolia’s proven process technology.
Chairman Paul Atherley said the FEED outcomes “clearly demonstrated” the competitiveness of a UK-based merchant refinery. TVL said the results now support financing, contractor engagement and progression towards a Final Investment Decision.
TVL has already secured a binding offtake agreement for up to 40% of initial production with a wholly owned subsidiary of Glencore.
European demand for lithium chemicals is forecast to exceed 700,000 tonnes per year by 2030, driven by gigafactory build-out and electrification targets.
Despite Tuesday’s decline, Alkemy shares remain up 20% over the past five trading days and nearly 50% across the month, as investors responded to improved lithium market sentiment and growing confidence in the Teesside project.
SC Insights’ Jon Mulcahy said the refinery “represents a strategically important project” for domestic battery supply chains at a time when global lithium conversion capacity remains constrained.