Billingham lithium refinery offered £18.3m Government backing for £185m plant
Tees Valley Lithium has been offered up to £18.3m in Government funding towards its planned £185m refinery at Billingham Chemical Complex, in what ministers have called a statement of confidence in Teesside's industrial future.
Alkemy Capital Investments, the London-listed owner of Tees Valley Lithium, announced the offer in principle from the DRIVE35 Automotive Transformation Fund on 17 September. The grant would support phase one of the refinery, designed to produce 25,000 tonnes a year of battery-grade lithium hydroxide, enough to supply more than 550,000 electric vehicles annually, with later phases scaling beyond 100,000 tonnes.
Jobs and economic impact
The company has previously said the project would create 66 direct jobs, around 517 roles in the wider supply chain and about 1,100 jobs during construction. It estimates the refinery will contribute more than £2.1bn to the UK economy over 25 years, with around half of that in the Tees Valley.
Vikki Jeckell, chief executive of Tees Valley Lithium, said the grant was a statement of confidence the company shares with partners including Glencore and Veolia, and that phase one alone represents nearly half of the domestic lithium refining capacity targeted for 2035 under the UK's Critical Minerals Strategy. Minister for Reindustrialisation Blair McDougall described the offer as an encouraging milestone, while Stockton North MP Chris McDonald called it a huge vote of confidence in Billingham and Britain's industrial future.
The funding comes through the Government's £4bn DRIVE35 programme, which backs the shift to zero emission vehicle manufacturing and the supply chains behind it.
What it means for local trades
A £185m process plant build on an existing chemical complex is exactly the kind of project that filters down through the regional supply chain. Site preparation, civils, structural steelwork and process piping lead the early packages, with heavy demand for electrical contractors and instrumentation work as the plant is fitted out, and scaffolding firms needed throughout the build on a live chemical site.
The construction peak of around 1,100 jobs will draw on the same pool of industrial trades already working across Teesworks and Net Zero Teesside, so competition for skilled labour is likely to stay fierce. Local firms not yet registered on project supply chains should use the Teesside trade directory and contractor procurement portals to get in front of the main build team before phase one packages are let.