en.Wedoany.com Reported - Alkemy Capital Investments plc (hereinafter referred to as Alkemy), as the sole owner of Tees Valley Lithium (TVL), has signed a non-binding term sheet with Canadian lithium development company E3 Lithium Ltd (E3) to establish a commercial framework for a long-term processing partnership.

Under the term sheet, E3 will utilize TVL's lithium hydroxide conversion capacity in the UK to convert lithium carbonate produced from its Clearwater project in Alberta, Canada, into battery-grade lithium hydroxide for supply to E3's customers. This arrangement enables E3 to access the lithium hydroxide supply chain, diversify the geographic scope and lithium chemical types available to its customers, while further validating market demand for TVL's independent merchant refining model.

The proposed partnership translates allied cooperation in critical minerals into commercial outcomes, spanning from the UK-Canada Critical Minerals Cooperation Agreement signed in 2023 to the G7 Critical Minerals Action Plan launched in Alberta in June 2025. By anchoring lithium conversion capacity in the UK, the partnership supports the UK's critical minerals strategy to enhance domestic processing capabilities and strengthens TVL's position as a core independent merchant refiner in a transatlantic resilient supply chain.

This term sheet builds on TVL's previously announced binding offtake agreement with a wholly owned subsidiary of Glencore plc, covering up to 10,000 tonnes of battery-grade lithium hydroxide per year, and underpins TVL's strategy of diversifying its customer base.

Sir Chris Bryant, UK Minister of State for Business and Trade and Member of Parliament, stated that critical minerals are widely used in products from mobile phones to cars. This agreement brings the UK-Canada critical minerals partnership to life, helping boost domestic production, drive economic growth, and build more resilient supply chains. It represents concrete action under the UK's critical minerals strategy to enhance economic security through dynamic relationships with global partners and build more sustainable and diversified supply chains.

Vikki Jeckell, CEO of Tees Valley Lithium, noted that this processing partnership with E3 Lithium, together with the previous offtake agreement with Glencore, marks another significant step in demonstrating market demand for TVL's independent merchant refining model.

Chris Doornbos, CEO and Chairman of E3 Lithium, stated that as the company negotiates with potential offtake partners, this agreement provides E3 with meaningful options, offering a potential pathway to meet lithium hydroxide demand while the company continues to focus on market speed and capital efficiency for its lithium carbonate products, and looks forward to continued collaboration with TVL.