E3 Lithium Advances European Market Strategy Through Collaboration Agreement with Tees Valley Lithium
E3 signs a non-binding agreement with a UK refinery to provide hydroxide conversion optionality for its operations.
E3 Lithium Ltd. (ETL) has entered into a non-binding Collaboration Agreement with Tees Valley Lithium Ltd. (TVL), a subsidiary of Alkemy Capital Investments plc. The agreement establishes a framework to convert lithium carbonate into battery-grade lithium hydroxide utilizing TVL's UK refinery capacity. The framework contemplates up to 50,000 tonnes of lithium hydroxide over an initial 10-year term.
Execution is contingent upon securing third-party offtake agreements and finalizing a definitive binding agreement. CEO Chris Doornbos stated the deal provides "meaningful optionality" to serve hydroxide demand while maintaining focus on carbonate production at the Clearwater Project. TVL previously announced a binding offtake agreement with a Glencore subsidiary for up to 10,000 tonnes per annum of lithium hydroxide.
E3 Lithium Ltd. (ETL) entered into a non-binding agreement that carries no immediate financial or operational commitments. The deal functions as a strategic optionality play rather than a direct revenue driver, aligning with the company’s broader commercialization strategy. This move follows the Axens MOU and the TKMS teaming agreement, both aimed at securing access to the European market.
The announcement involves no capital raise, dilution, or debt issuance. Market impact is expected to be muted, as the news is incremental and contingent on future milestones. The agreement does not alter the core carbonate-focused development timeline or project economics.
E3 Lithium Ltd. is developing the Clearwater Project in the Bashaw District of Alberta, Canada, utilizing Direct Lithium Extraction (DLE) technology to produce battery-grade lithium carbonate from brine resources. A Pre-Feasibility Study released in June 2024 outlines a 1.13 Mt LCE proven and probable mineral reserve.
The project economics include a pre-tax NPV(8%) of USD $5.2 Billion and an IRR of 29.2%, alongside an after-tax NPV(8%) of USD $3.7 Billion and an IRR of 24.6%. Stage 1 production targets 12,000 tonnes/year of lithium carbonate, with expansion potential up to 36,000 tonnes/year. The company successfully produced battery-grade lithium carbonate with 99.7% purity in Phase 1 of its demonstration facility and is advancing Phase 2 and Phase 3 operations.