U.K.'s First Lithium Refinery Will Add $2.8 Billion To Economy

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K.'s first lithium hydroxide refinery will bring £2.1 billion (US$2.8 billion) to the U.K. economy, create 1,700 jobs during its construction and reduce the U.K. and Europe's battery supply chain's dependence on China.

The developers of the U.K.'s first lithium hydroxide refinery have said that it will bring £2.1 billion (US$2.8 billion) to the country's economy and create 1,700 jobs during its construction. 

Lithium for 550,000 EVs

Tees Valley Lithium (TVL) said that the proposed refinery at Billingham Chemical Complex will be worth billions to the economy over its 25-year lifespan, including £1 billion (US$1.3 billion) of direct benefit remaining within the heavily industrialized Tees Valley and North East. With an estimated startup date of 2028, it would be the country's first lithium refinery and be capable of producing 25,000 tonnes per annum (TPA) of battery grade lithium hydroxide monohydrate (LHM) - enough for use in the batteries of 550,000 electric vehicles (EVs). According to Industrial Info Resources data there are four active projects at Billingham worth more than US$1.5 billion. 

Green From the Start

An impact report commissioned by TVL parent company Alkemy Capital Investments plc highlighted the project's green credentials, stating that the project will operate 100% on renewable energy and that "sourcing feedstock from brine deposits rather than hard rock mining and refining at TVL instead of in China saves approximately 300,000 tonnes of CO2 per year." It added that the total quantified annual emissions saving across all measured categories is approximately 1.4 million tonnes of CO2 equivalent per year, "equivalent to powering almost 700,000 U.K. homes."

Impact on U.K. Critical Minerals

The annual capacity of Billingham at 25,000 TPA would represent 50% of the U.K government's critical minerals target of domestic lithium carbonate equivalent production by 2035. Vikki Jeckell, chief executive of the Tees Valley Lithium, wrote: "The strategic case is unambiguous. The U.K. currently has no domestic LHM refining capacity at a meaningful scale. Approximately 75% of global LHM supply is currently refined in China. TVL directly resolves this structural vulnerability. The Billingham site offers deepwater port access, an established chemical industry cluster, and a skilled available workforce: locational advantages that are exceptionally difficult to replicate elsewhere in the U.K." TVL has also secured a binding five-year offtake deal with mining major Glencore for up to 10,000 TPA of its battery-grade lithium hydroxide when the refinery is commissioned in 2028. 

U.K. Critical Minerals Strategy

The U.K. is a net importer of critical minerals and according to its own Critical Minerals Strategy, published last July: "We will continue to be reliant on imports of critical minerals, even as we ramp up our domestic capabilities." It aims to limit imports of any critical mineral from a single country to no more than 60% by 2035. That strategy set out targets including: 

• At least 10% of annual U.K. demand for critical minerals in the aggregate is met through domestic production (primary extraction, processing and refining of critical minerals) by 2035.
• At least 50,000 tonnes of lithium (or lithium carbonate equivalent) is produced domestically by 2035.
• 20% of total annual U.K. demand for critical minerals is met through recycling of products to recover critical minerals by 2035.

In February, the U.K. signed a memorandum of understanding (MoU) with the U.S. to help it secure critical minerals supply chains. For additional information, see February 17, 2026, article - U.K., U.S. Join Forces on Critical Minerals.

Key Takeaways 

• The U.K.'s first lithium hydroxide refinery will bring £2.1 billion (US$2.8 billion) to the U.K. economy and create 1,700 jobs during its construction. 
• It is a key foundation project for the U.K.'s Critical Minerals Strategy.
• Industrial Info Resources is tracking four active projects at Billingham worth more than US$1.5 billion. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).