Teesside bids to host ‘green’ lithium plant for batteries

Planned refinery would help to cut Britain’s dependence on China when making electric cars

A BRITISH start-up is in talks to build one of Europe’s first lithium refineries in Teesside after securing support from a metals trading giant.

Green Lithium’s refinery would produce tens of thousands of tonnes of battery-grade lithium per year, helping to reduce reliance on China for a material that is essential to electric cars.

The firm is backed by Trafigura, the world’s biggest private metals trader, which has taken a stake in the business and will help to obtain supplies of unrefined “feedstock”.

Bosses at Green Lithium are still finalising a location for the plant, only saying it will be somewhere in the North of England.

Ben Houchen, the Conservative mayor of the Tees Valley, is lobbying them to choose Teesside Freeport, The Daily Telegraph can reveal.

Another firm planning a similar refinery, Tees Valley Lithium, has already announced it will base itself at the freeport, where goods can be imported and exported without incurring duties if they do not leave the site.

Mr Houchen said: “We’re speaking to lots of investors in the automotive supply chain who recognise the benefit of being in a freeport, especially when the race to reshore supply chains is creating advantages for those locating in the UK early.

“Lithium is a key part of that and I’m working to make sure we capture this amazing opportunity for Teesside.”

Diversifying Europe’s supply of rare earth minerals such as lithium is seen as vitally important in the coming decades, as the switch towards renewable power sources and electric vehicles turbocharges demand.

Currently, it is estimated that more than 90pc of rare earth minerals are processed in China, even though the unrefined materials can be found in countries including Australia, the US, Chile and Argentina.

Refined lithium is then used to make batteries for electric cars and a plethora of gadgets.

However, Sean Sargent, chief executive at Green Lithium, claimed that refining plants in China created large amounts of pollution. The Chinese market will also need more of its own refined lithium for domestic purposes over time, according to forecasts, meaning Western countries could face supply crunches unless they establish their own supply chains.

Mr Sargent said his company will aim to get planning permission for a plant and begin construction in a year’s time.

It would then begin production by the end of 2024 and aim to be fully up and running by 2026, producing around 50,000 tons of lithium – but with room to expand.

He said Green Lithium’s plant would produce 60pc fewer carbon emissions than a typical Chinese plant and could cut emissions to zero eventually by drawing on green power sources such as wind, or green hydrogen.

♦ Mr Houchen has waded into a row over Heathrow landing charges, accusing the airport of “greed and short- sightedness” to make a “quick buck at the expense of people and businesses in my region”.

In a letter to Grant Shapps, the Transport Secretary, Mr Houchen said that flights between Heathrow and Teesside airports have been suspended because of a 37pc increase in charges.

A spokesman for Heathrow said it had a strong track record of supporting domestic routes, and was discounting its charges for domestic flights.