TVL has executed a memorandum of understanding and will negotiate a definitive offtake agreement to provide rolled low-carbon lithium hydroxide to Recharge's qualified supply chain and to potentially jointly procure spodumene for TV's processing facilities.

The acquisition was successful based on a bid from Recharge, after EY announced that Recharge had passed the successful bid for British Volt on Feb. 6, a deal that is now expected to be completed within the next seven days.

The tolled lithium hydroxide would supply, respectively, the gigafactory British Volt previously was planning in Blyth, Northumberland, and Recharge's Geelong gigafactory in Australia, with both companies working toward a definitive offtake and supply agreement, according to Alkemy.

The companies have also agreed to work together to source lithium spodumene to be converted into lithium sulphate at a refinery operated by TVL in Port Hedland, Western Australia, for the shipment to Teesside to be transformed into lithium hydroxide.

Low carbon lithium hydroxide is intended to be provided to its UK and European customers through the sourcing of low carbon feedstock, accompanied by the generation of low carbon electricity from offshore wind and green hydrogen that will power an electrochemical refining process.

“The significant offtake anticipated under the MOU allows for long-term planning and production forecasting as well as reinforcing its battery offtake agreements and existing supply chain,” Alkemy said, adding that Recharge would also have its lithium hydroxide supply to an unnamed active cathode supplier.

Alkemy and TVL Director Sam Quinn said: “Recharge Industries was aligned with TV's philosophy and vision on powering the transition to a low-carbon and low-emissions future through the establishment of onshore UK facilities within the EV and battery cell supply chain.”

“This MOU connects two like-minded companies to help ensure the critical mineral supply chain necessary to establish large-scale battery manufacturing in Australia, the US, and the UK, and highlights our determination to restore the fortunes of British Volt,” said Recharge founder David Collard.

In January, TVL secured first phase approval of its proposed lithium hydroxide refinery by the UK government's Automotive Transformation Fund.

The $300 million refinery was approved by Redcar and Cleveland Borough Council in November to be built at Wilton International Chemicals Park, Teesside Freeport.

TVL had spent 18 months conducting a full environmental impact assessment for the project and was 'shovel-ready', with construction scheduled to begin in 2023, with operations to likely follow in 2025.

When fully scaled up, the refinery will supply 96,000 mt/year of low-carbon battery-grade lithium hydroxide for the electric vehicle battery industry.