Pioneering NE firms hope to create UK’s first ever lithium production hub for EV batteries

TWO North East companies are exploring the potential for them to create the UK’s first industrial-scale lithium production hub – crucial to the manufacture of electric vehicle (EV) batteries.

If successful, the partnership between natural resources company Weardale Lithium (WL), based in County Durham, and Tees Valley Lithium (TVL), which has a lithium chemical processing hub at the Wilton International chemicals park on Teesside, could mean the UK’s first ever lithium supply and refining operation.

The two companies are working together to create a battery supply chain industrial hub, in which WL would extract lithium from heated saline waters pumped through rocks to collect the mineral, which it would then supply to TVL for refining.

Supply of domestic lithium is of strategic importance to the UK in achieving its net-zero ambitions, through production of high-value batteries for EVs.

In July 2022, the government produced the UK’s first-ever ‘Critical Minerals Strategy’, which focused on the potential for the nation to become self-sufficient in its production of essential minerals.

Lithium is classified as a critical mineral in this report – but currently, there is no commercial lithium production or refining in the UK or Europe.

Producing and refining it domestically would save on global transportation costs, create a stable home supply and create ‘an environmental premium’ over foreign suppliers.

Stewart Dickson, chief executive of Weardale Lithium, said: “Our partnership with Tees Valley Lithium is another important step in developing an integrated and coherent supply of lithium in North East England.

“In order to accelerate the adoption of electric vehicles and meet net-zero targets, the UK needs to secure supply of lithium for refining and production of battery-grade lithium hydroxide and lithium carbonate.

“This collaboration with Tees Valley Lithium is highly beneficial for both parties, as we both seek to maintain the momentum behind the development of the battery ecosystem in the North East.

“This builds on the region’s existing strengths in electrification, automotive and advanced manufacturing, and enhances the North East’s position at the forefront of electrification technologies.”

John Walker, CEO of Tees Valley Lithium said: “TVL are looking to establish world-class lithium hydroxide production at the Wilton International Chemicals Park, in the Teesside Freeport, to supply the burgeoning demand from gigafactories in the UK and Europe.

“We are pleased to be bringing back high-value manufacturing to the North East and securing the critical minerals for our journey to net zero.”