September 17, 2026
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UK Government offers up to £18.3 million to support Tees Valley Lithium
An offer in principle under the £4 billion DRIVE35 programme backs Phase 1 of our Billingham refinery.
Tees Valley Lithium has received an offer in principle from the UK Government for a capital grant of up to £18.3 million under the £4 billion DRIVE35 programme.
The support is delivered by the Department for Business, Innovation, Science and Trade in partnership with the Advanced Propulsion Centre UK. It is subject to final approvals. TVL is working with the department to complete the remaining due diligence and conditions needed to enter into a final grant agreement.
The offer supports Phase 1 of TVL's refinery at Billingham, a £185 million development that will produce 25,000 tonnes a year of battery-grade lithium hydroxide. That is enough for more than 550,000 electric vehicles a year. TVL plans to scale the site beyond 100,000 tonnes a year.
Phase 1 alone represents nearly half of the refining ambition the UK Critical Minerals Strategy has set for 2035.
The project has strong commercial foundations:
- a binding offtake agreement with Glencore;
- process technology from Veolia;
- a feedstock agreement with Wogen.
TVL's Impact Report estimates the refinery will contribute more than £2.1 billion to the UK economy over 25 years, including around £1 billion in the Tees Valley, and support more than 1,700 jobs.
Blair McDougall, Minister for Reindustrialisation, said:
"This is a really encouraging milestone for Tees Valley Lithium and proves what's possible with this kind of British innovation and expertise. It shows the vast potential for refining and using critical minerals here in Britain to back our zero emission vehicle manufacturing for the future. Teesside has a proud industrial heritage, and companies like Tees Valley Lithium are helping write its next chapter. Our £4 billion DRIVE35 programme is backing businesses like this to grow, invest and help build the supply chains we need for the future as part of our Industrial Strategy."
Chris McDonald, MP for Stockton North, said:
“This is a huge vote of confidence in Billingham, Teesside and Britain’s industrial future. I have supported the Tees Valley Lithium project since becoming MP and worked closely with the team as they have developed plans for what will be a major new lithium refining facility here in Billingham. As the government's industry minister last year, I developed and launched Britain's critical minerals strategy, that is securing investments like this in new materials processing and mining facilities.”
Vikki Jeckell, CEO of Tees Valley Lithium, said:
"This grant is a statement of confidence in Teesside, and it is a confidence we share with partners around the world, among them Glencore and Veolia, who have already committed to what we are building here. The Critical Minerals Strategy set Britain the task of creating domestic lithium refining capacity, and TVL exists to deliver it: Phase 1 alone represents nearly half of the 2035 target. Our focus now is delivering first battery-grade production in the UK.”
Paul Atherley, Chairman of Alkemy Capital Investments, said:
“We are very grateful to BIST and the Advanced Propulsion Centre for their support for the establishment of the UK’s flagship lithium refinery in Teesside. Located in the heart of Teesside’s port and industrial cluster and drawing on the region’s extensive chemical engineering heritage this future facing refinery will be one of the largest in Europe and will position the UK at the forefront of the biggest energy transition in history.”