A plan to bring one of Europe's first EV battery plants of its kind to Teesside could create more than 1,000 jobs.
Tees Valley Lithium facility is set to meet up to 30% of the continent's Lithium Hydroxide demand by 2030. The major plant at Wilton could create 500 jobs during construction and a further 500 when up and running.
Wilton owner Sembcorp Energy UK signed an exclusivity agreement with Alkemy Capital Investments plc in February. Demand for Lithium Hydroxide, which is used in car batteries, is expected to soar by 600% in the next decade.
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China currently controls 90% of the world’s Lithium Hydroxide supply, and will need all of it "for the country's Carbon Neutral 2060 plan", a scoping report has claimed. There is currently no Lithium Hydroxide production capacity in Europe.
However by 2025, the continent will have 'gigafactories' producing 543 gigawatts of batteries. The scoping report to Redcar and Cleveland Council said the plant, on a 21-acre site, will serve gigafactories planned for the North East.
"These include British Volt and Envision in the North East," it said, "which will require 325,000 tonnes of Lithium Hydroxide per year. The proposed development will be able to produce up to 30% of European Lithium Hydroxide demand by 2030 and is ideally located to serve the proposed gigafactories in the North East and those in Europe, due to its proximity to Teesport."
Four production lines at the plant will generate 500 permanent jobs once operational. "There will be 125 jobs for the first process line/ train, plus 30 management jobs," the report said, "followed by a further 115 jobs for each subsequent process line/ train.
"It is anticipated that the proposed development will generate up to 500 jobs during construction and over 500 high-value direct full time jobs during operation." There will be "no direct emissions of greenhouse gases" from the plant, it added.
No off-site infrastructure is required as the proposed development will use "existing connections and utilities at Wilton International". The six-month exclusivity deal - worth £50k - means Tees Valley Lithium could establish a facility to process chemicals used in electric vehicles batteries, subject to a feasibility study and a formal lease for the land.
Alkemy is looking to develop the plant with a view to becoming a key supplier to the UK and European mobile energy market. The company will submit a full planning application for the Tees Valley Lithium (TVL) project to Redcar and Cleveland Council later 2022.
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