Alkemy Capital Investments (ALK) Investor presentation summary

Strategic context and market opportunity

• Global lithium demand reached 1.1 million tonnes LCE in 2024, a tenfold increase since 2015, and is forecast to exceed 5 million tonnes by 2035, driven primarily by energy storage and electric vehicles.

• China currently dominates lithium refining, controlling over 70% of global capacity, while the UK has no domestic refining capacity but rising demand.

• OEMs are increasingly sourcing lithium directly from refineries to secure supply and meet ESG standards, pushing for regionalisation and transparency.

• Lithium prices are entering a new cycle, with recent increases above $10,000/MT-LCE, incentivising new projects and reflecting supply bottlenecks.

• Environmental and regulatory pressures are impacting Chinese supply, with major mines suspending operations and raising concerns about sustainability.

Tees Valley Lithium project overview

• Tees Valley Lithium (TVL) aims to build the UK's first large-scale lithium conversion facility, with an initial capacity of 25ktpa battery-grade lithium hydroxide, scalable to 100ktpa.

• Capital cost for Train 1 is under $250 million, with first production targeted for early 2028.

• The project leverages proven Veolia refining technology, optimised for UK and European standards, and has secured feedstock agreements covering 100% of initial requirements.

• The facility is strategically located in Teesside, benefiting from deep-water port access, skilled workforce, and proximity to UK and European battery supply chains.

• Hundreds of jobs and significant supply chain opportunities are expected for the local economy, supporting regional regeneration and skills development.

Project execution and economics

• The FEED study is underway, targeting a final investment decision in Q1 2026, with construction to start mid-2026 and first commercial production in early 2028.

• Modular design and feedstock flexibility reduce safety risks and accelerate construction, while plant availability has been optimised to 90%.

• TVL targets low-cost technical-grade carbonate feedstock at a 25-40% discount to battery-grade, using a refining fee model to protect margins.

• Project NPV is estimated at $475 million, with capital efficiency and scalable growth as key advantages.

• OPEX and CAPEX are competitive compared to global peers, especially by processing intermediate feedstocks rather than spodumene.