Alkemy Capital Investments PLC has expanded its critical minerals strategy into graphite with the creation of Tees Valley Graphite Limited (TVG), a wholly owned subsidiary. TVG has signed a non-binding memorandum of understanding with Syrah Resources Limited for a joint venture to develop a commercial-scale natural graphite active anode material (AAM) processing facility in the UK. The facility will be located at the Wilton International Chemicals Park within the Teesside Freeport, aiming to supply AAM to the European market.

Syrah Resources, a globally significant vertically integrated natural graphite and anode company, will initially have a 50% interest in the joint venture. The proposed Wilton AAM facility is expected to be supplied with natural graphite from Syrah's Balama graphite project in Mozambique, the world's largest integrated graphite operation. It will target an initial production capacity of 20,000 tonnes AAM per annum for supply into the UK and European battery markets.

The facility is expected to gain access to low-carbon offshore wind power, providing 100% certified green low-cost energy, enabling it to produce a low carbon product. With the increasing demand for graphite, the Wilton AAM facility is poised to benefit from recent regulatory changes in China restricting graphite exports, signaling a promising future for graphite and AAM producers ex-China.

The joint venture aims to lower construction costs and project delivery timeframes by leveraging the successful planning and approvals and local knowledge gained by Alkemy portfolio company Tees Valley Lithium. The Wilton AAM facility will use natural graphite feedstock from Syrah's Balama graphite project and is expected to be financed at project level through green bonds, debt, strategic equity finance, and grant funding.

Kien Huynh, Director of Tees Valley Graphite Ltd, expressed excitement about the joint venture with Syrah, stating that it brings together Alkemy's development expertise at Wilton with Syrah's world-leading graphite development, operations, and sales expertise to access the UK and European markets with a low carbon AAM product. The evaluation of the Wilton AAM facility is seen as a timely development, especially in light of the recent export restrictions imposed by China.

For more information, the full RNS Announcement can be found on the London Stock Exchange website.