TSX-V-listed E3 Lithium has entered into a non-binding collaboration agreement with Tees Valley Lithium (TVL), a wholly-owned subsidiary of Alkemy Capital Investments.

The agreement establishes a framework that creates optionality for E3 to convert its lithium carbonate into lithium hydroxide and further support offtake relationships in the European market.

Under the proposed non-binding agreement, E3 would use TVL's lithium hydroxide conversion capacity at its UK refinery to convert lithium carbonate produced at E3’s Clearwater project into battery-grade lithium hydroxide for supply to E3's potential customers.

The agreement contemplates up to 50 000 t of lithium hydroxide over an initial ten-year term.

The agreement is non-binding in all respects and there is no guarantee that E3 will enter into a definitive agreement with TVL, or that E3 will utilise TVL's conversion capacity. Any future arrangement remains subject to the terms of a potential offtake agreement with a third-party customer and finalising the terms and execution of a binding definitive agreement with TVL.

"This collaboration agreement gives E3 meaningful optionality as we negotiate with potential offtake partners. This framework provides a potential pathway to serve hydroxide demand while we continue to focus on our speed to market and enhance capital efficiencies for our carbonate production. We look forward to our ongoing collaboration with TVL," says E3 CEO and chairperson Chris Doornbos.

TVL is dedicated to providing battery-grade lithium chemicals to meet the growing demand of the electric vehicle supply chain in Europe.

Strategically located in Teesside, TVL is committed to sustainable, efficient, and world-class operations.

TVL's refinery in the Tees Valley, UK, has previously announced a binding offtake agreement with a wholly owned subsidiary of Glencore plc for up to 10 000 t/y of battery-grade lithium hydroxide, demonstrating the commercial momentum behind TVL's independent merchant refining model.