A huge lithium project has been confirmed for Teesside with the awarding of a key contract.

Worley will begin supporting Green Lithium in building the UK’s first large-scale merchant lithium refinery, which will create a supply of low-carbon, battery-grade lithium chemicals to help meet Europe’s growing demand.

The refinery will have the capacity to produce 50,000 tonnes of battery-grade lithium a year – meeting six per cent of Europe’s anticipated battery demand by 2030. This is enough to help produce one million electric vehicles annually.

Read more: Green Lithium teams up with Trafigura for Teesside project

“Current lithium refining capacity in Europe doesn’t match the increasing demand for battery-grade lithium chemicals, which is projected to grow to 800,000 tonnes by 2030. So, this project is a step towards meeting demand and accelerating local lithium production,” said Ross McPherson of Worley.

Sean Sargent, CEO of Green Lithium, said: “Green Lithium is enabling our planet’s transition to sustainable energy by increasing the supply of low-carbon lithium chemicals to meet increased global demand. There is currently no lithium refining capability in Europe. Without localised supply, the automotive and battery manufacturing sectors in the UK and EU will fail.

“Critically, Green Lithium will use a world-leading, sustainable, and low-carbon refining process, which has an 80 percent lower carbon footprint than traditional refineries in existing markets,” he said.

“We have assembled an exceptional team, driving toward commissioning our refinery in 2025, and we are pleased to be working with Worley as an important delivery partner” Sargent continued.

The Northern Echo: The plan for the Tees Valley Lithium plant at WiltonThe plan for the Tees Valley Lithium plant at Wilton (Image: Press release)

Tees Valley Mayor Ben Houchen said: “This announcement has confirmed another first for our region - and not just for the UK but for all of Europe. Green Lithium’s facility will be critical to meet growth in electric vehicle manufacturing and we’ve once again been recognised for our brilliant chemicals and low-carbon credentials in having it sited here.

“In the long-term, this will help create even more jobs in the cleaner, safer and healthier industries in the future, complementing other key projects taking shape across Teesside, Darlington and Hartlepool. These include Wilton’s Tees Valley Lithium scheme and will go further to shore up battery manufacturing supply chains, opening up even more opportunities for businesses in the EV sector to invest here.”

Worley will provide engineering services for front-end loading of various supporting components of the plant’s technology system. This will involve developing the balance of engineering, supporting critical planning, and permitting activities, general constructability, and developing philosophy documents for controls systems and automation.

“Collaboration in Europe could accelerate sustainable lithium refining. This will help markets dependent on battery-grade lithium to secure reliable feedstock and build sustainable technology vital to the energy transition. These are important steps on the journey to delivering a more sustainable world,” said McPherson.

Worley delivers project and asset services for the energy, chemicals and resources sectors around the world. It provides expertise in engineering, procurement and construction, as well as consulting services to tackle complex issues, such as climate change, the energy transition and digital transformation.

Green Lithium is building Europe’s first large-scale merchant lithium refinery, creating a supply of low-carbon, battery-grade lithium chemicals to sell into the lithium-ion battery, energy storage, grid stabilisation and electric vehicle (EV) supply chains.

Green Lithium was conceived with the signing of the Paris Agreement and the emerging view that EV battery supply chain is going to play a key role in the process to decarbonise the world.

It has already agreed terms with global giant Trafigura. Under that relationship, Trafigura plans to supply lithium feedstock required for the site and invest in Green Lithium’s development.

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