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Highlights:
- Alkemy Capital Investments secures up to £25 million in funding to advance its Tees Valley Lithium project.
- Tees Valley Lithium aims to become Europe’s largest independent lithium hydroxide refinery.
- Alkemy shares surged 69% following the announcement, trading at 72p.
Alkemy Capital Investments PLC (LSE:ALK), a UK-based firm working on a lithium processing project, saw its shares soar by 69% on Thursday after announcing plans to secure up to £25 million in funding. The company, which has a market value of approximately £6.5 million, revealed that investment bank ABG Sundal Collier will lead private placements of convertible bonds or an equity issue to raise the capital.
The funding is aimed at supporting Alkemy’s Tees Valley Lithium project, a key initiative the company believes could become Europe’s largest independent lithium hydroxide refinery. The capital will be raised at the subsidiary level, with Tees Valley Lithium (currently fully owned by Alkemy) handling the process.
Chair of Alkemy, Paul Atherley, hailed the move as a “major step forward” for the project. He emphasized that securing the funding will enable the company to complete the critical Front-End Engineering Design (FEED) stage and advance its plans to meet the growing demand for battery-grade lithium in Europe. Atherley expressed optimism about the future, noting that Tees Valley Lithium is well-positioned to capitalize on Europe’s increasing need for lithium hydroxide, driven by the booming electric vehicle market.
The convertible bonds issued are expected to include mandatory conversion terms, potentially triggered by an initial public offering (IPO) of the Tees Valley Lithium unit, planned for 2025.
In response to the news, Alkemy’s shares jumped by 29.5p, closing at 72p in early trading on Thursday.
