Alkemy is pleased to announce the company has successfully expanded its unique critical minerals strategy into graphite, with the creation of wholly owned subsidiary, Tees Valley Graphite Limited (TVG), adding further value to the Alkemy portfolio.
 
TVG has entered into a non-binding memorandum of understanding with Syrah Resources Limited (SYR:ASX) for the establishment of a joint venture to develop a commercial-scale natural graphite active anode material processing facility located at the ‘plug-and-play’ Wilton International Chemicals Park within the Teesside Freeport, to supply AAM to the European market.
 
Syrah Resources is a globally significant vertically integrated natural graphite and anode company with its flagship Balama Graphite Operation in Mozambique – recognised as one of the world’s largest operating graphite mines – and a downstream active anode material facility in the United States.

HIGHLIGHTS:   

• MOU with Syrah for a joint venture to evaluate the development of a commercial-scale natural graphite AAM processing facility in the UK. 
• Syrah and TVG intend to enter into a binding joint venture agreement in the near term and will each initially have a 50% interest in the joint venture.
• The Wilton AAM facility is proposed to be supplied with natural graphite from Syrah’s Balama graphite project in Mozambique, the world’s largest integrated graphite operation
• Combines Syrah’s global graphite development, operations and sales expertise with Alkemy’s UK development capabilities at the plug-and-play Wilton International Chemicals Park, benefitting from well-established infrastructure, essential utilities, and the Teesside Freeport.
• Targeting an initial production capacity of 20,000 tonnes AAM per annum for supply into cell manufacturers and OEMs located in the UK and European battery markets. 
• The Wilton AAM facility is expected to gain access to low-carbon offshore wind power providing 100% certified green low-cost energy enabling it to produce a low carbon product.
• Fastmarkets predicts graphite demand will increase from around from around 1 million tonnes in 2022 to approximately 6.5 million tonnes by 2033 with recent regulatory changes in China restricting graphite exports amplifying the demand potential, signalling a promising future for graphite and AAM producers ex-China.

The Wilton AAM facility will leverage the successful planning and approvals and local knowledge gained by Alkemy portfolio company Tees Valley Lithium and will aim to lower construction costs, project delivery timeframes and bring forward first production by replicating and upscaling the technology and design used at Syrah’s Vidalia AAM facility in Louisiana, United States. The Wilton AMM facility will use natural graphite feedstock from Syrah’s Balama graphite project in Mozambique, the world’s largest integrated graphite operation.

Syrah is a leading ex-China supplier of quality graphite products and has significant practical knowledge and know-how in the development of an AAM processing facility, including in feasibility, detailed design and engineering, process technologies, equipment selection and procurement, construction management and product development, product qualification and offtakes.

Syrah and Alkemy intend to enter into a binding joint venture agreement in the near-term, which will govern feasibility and permitting workplans and schedules, budget and relevant milestones associated with the Wilton AAM Facility. Ultimately, development of the Wilton AAM facility is planned to be subject to a final investment decision being unanimously approved by Syrah and TVG following the completion of further technical studies, receipt of approvals, entry into a shareholders’ agreement, incorporation of a project company, and financing and offtake commitments. Syrah and TVG will each initially have a 50% interest in the joint venture.

The Wilton AAM facility is expected to be financed at project level through green bonds (for which accreditation shall be sought), combined with a mix of debt, strategic equity finance and grant funding (via domestic and accessible international grant funding programmes).

Kien Huynh, Director of Tees Valley Graphite Ltd commented:

“We are very pleased to be entering into this MOU for a joint venture with Syrah, which brings together Alkemy’s development expertise at Wilton with Syrah’s world leading graphite development, operations and sales expertise, to access the UK and European markets with a low carbon AAM product.
 
We believe that the evaluation of the Wilton AAM facility is a very timely development as UK and European customers grow increasingly concerned over potential future supply shortages especially in light of the recent export restrictions imposed by China.”