Refining the Future of Energy – Right Here in Teesside

TVL has signed non-binding Heads of Terms with Canadian lithium developer E3 lithium, establishing the framework for a long-term tolling partnership covering up to 50,000 tonnes of battery-grade lithium hydroxide over a minimum 10-year term.

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The partnership is another step in building a diversified portfolio of commercial relationships across the global battery materials supply chain. TVL is building a world-class merchant lithium refinery in the Billingham chemical cluster on Teesside. Converting high-value feedstock from a diversified domestic and international supply base into battery-grade lithium using Veolia's commercially validated process technology. At full Train 1 capacity, that is enough lithium to support the production of 550,000 electric vehicles a year.

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Under the arrangement, TVL will convert lithium carbonate form E3's Clearwater Project in Alberta into battery-grade lithium hydroxide at Teesside. It follows the binding offtake agreement signed with Glencore plc in January.

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A Strategic Partnership with a Leading Canadian Lithium Company

Based in Alberta, Canada, E3 Lithium is developing one of Canada's largest lithium resources at its Clearwater Project. This partnership combines Canadian lithium production with UK refining capability, demonstrating how trusted international partners can build resilient battery materials supply chains together.

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The Merchant Refining Model

Unlike integrated refiners tied to a single mining asset, TVL's merchant model enables the refinery to process material from multiple independent producers through a tolling commercial structure. The £185 million refinery combines some of the world's lowest projected capital and operating costs, giving Tier 1 customers a proven path to cut their dependency on China and competitively priced access to the European lithium market. For producers like E3, it offers dedicated battery-grade conversion to support E3's European customers.

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Delivering on UK-Canada Critical Minerals Ambitions

The UK and Canada signed a critical minerals cooperation agreement in 2023, and in June 2025 G7 leaders launched the Critical Minerals Action Plan, in Alberta, the home of E3's Clearwater Project. Both governments have identified secure, diversified supply chains built around trusted partners as a strategic priority. By combining Canadian lithium resources with UK refining capability, TVL and E3 Lithium are demonstrating the commercial partnerships needed to turn those agreements into industrial reality.

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Production at Teesside will scale from an initial 25,000 tonnes to over 100,000 tonnes per annum, making TVL one of Europe's largest lithium refineries, and giving Teesside and the UK a leading role in one of the biggest industrial transitions in history.

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Sir Chris Bryan, MP and UK Minister of State at the Department for Business and Trade, commented:

"This is our Critical Minerals Strategy in action: forming dynamic relationships with partners across the world to boost our economic security and helping build more sustainable and diversified supply chains for critical minerals."

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Gemma Cooper, Chief Commercial Officer, commented:

"Our merchant refining model is design to support a portfolio of commercial partnerships across the global lithium industry. Building on our binding offtake agreement with Glencore and feedstock agreements covering both virgin and recycled materials, the Heads of Terms with E3 Lithium is the latest step in TVL's strategy to build resilient battery materials supply chains, served by our independent refining capacity at Teesside."

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The Heads of Terms is non-binding and there can be no certainty that a definitive agreement will be concluded. For full details, please refer to the RNS announcement dated 8 July 2026, available here.

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As we continue to build Tees Valley Lithium into the UK’s leading independent lithium refinery, Our announced partnerships with both Watercycle Technologies and Circulor mark an important step forward in strengthening both our commercial model and our long‑term supply resilience. By integrating on‑site lithium recovery and securing a pathway to significant volumes of domestic recycled feedstock, we are enhancing project economics, improving sustainability performance and embedding the digital infrastructure required for future regulatory compliance.

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From a commercial standpoint, these partnerships reflect the type of ecosystem we are deliberately building around TVL: UK‑based, technology‑enabled and aligned with the long‑term needs of battery and automotive customers. They give us the flexibility, transparency and low‑carbon credentials that our customers increasingly expect as the market evolves.

Why this matters

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Improved lithium recovery and stronger economics

Our MoU with Watercycle Technologies brings proven, modular UK technology directly into the refinery. Their system enables us to recover lithium that would otherwise be lost in the process, improving overall yield and supporting a more efficient, lower‑waste operation. At long‑term pricing ,this represents up to US$16 million per year in value, achieved without increasing capital intensity.

Watercycle is an exceptionally strong partner for this work. They already operate Europe’s first commercial DLE plant, have demonstrated reliable performance across a wide range of brines and industrial waste streams, and are scaling UK capacity with credible technical and financial backing. Their technology is deployed, validated and fully aligned with our ambition to maximise resource efficiency from day one.

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Access to domestic recycled feedstock

Our non‑binding Heads of Terms with Watercycle also provide a pathway to supply up to 50,000 tonnes of lithium carbonate over five years, with at least 50 percent of this volume expected to be recycled material. This gives us a clear route to securing UK‑sourced recycled material as national recycling capacity grows and supports our target of achieving at least 20percent recycled content from first production, well above the EU’s mandated minimum of 6 percent by 2031.

For our customers, this means access to a reliable, low‑carbon, domestically sourced feedstock that strengthens supply chain resilience and supports their own sustainability commitments.

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Full traceability and battery passport readiness

Our partnership with Circulor ensures we will have full batch‑level traceability in place ahead of first production. Circulor’ s platform is already used by global leaders including Volvo Cars, Ford and Panasonic, and is widely recognised as the benchmark for digital product passport capability in the battery materials sector.

Embedding this capability early allows us to evidence material origin, recycled content and ESG performance from day one of operations. It positions TVL to meet EU Battery Regulation requirements as soon as we enter the market and gives future customers confidence in the provenance and sustainability of every tonne we produce.

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What this means going forward

Together, these developments strengthen TVL’s commercial model, reduce execution risk and reinforce our position as a future leader incompliant, low‑carbon lithium refining. With improved recovery, access to domestic recycled feedstock and digital traceability built in from the outset, we are developing the capabilities that battery and automotive customers increasingly expect as the market moves toward higher sustainability and transparency standards.

These partnerships demonstrate the direction of travel for TVL: commercially robust, future‑proof and designed to give customers confidence in both the reliability and the sustainability of the material they receive.

Signed,

Gemma Cooper
Chief Commercial Officer, Tees Valley Lithium

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