UK's first merchant lithium refinery nears final stages of EIS fundraising

Green Lithium, a trailblazer in constructing the UK’s premier low-carbon merchant hard-rock lithium refinery, is poised to revolutionise the market as an alternative supplier to China for European battery supply chains.

With the help of Prospedia Capital – a company focused on raising funds for the companies of the automotive industry – the Green Lithium will try to attract up to £2. 6 million through the EIS offered in the UK. This longstanding proposal provides significant tax exemptions of income, capital gains, and inheritance taxes to promote participation of UK angel investors and taxpayers in venture capital funds.

Green Lithium has been very consistent in managing business risks, considering having raised over £14 million in private equity and government grant funding. These funds have been paramount to funding essential components of its business strategy, such as bench-scale tests, pilots, engineering opinions, third-party life cycle assessments, and capital investment projections. Situated in Teesside proficiently, the refinery site selection has been apt and major partnerships have been well cemented, coupled with an experienced team of managers and skilled board of directors.

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This current round of funding, which has surpassed £1 million already invested, is followed by institutional funding for the construction of a scale-up plant with additional money invested for a full-blown facility. The refinery’s plan is under the strategic positioning in terms of demand forecasting of battery-grade lithium chemicals by 2030 fueled by rising manufacturing of electric vehicles in Europe. The following proposition makes this venture attractive proposition of investment for Europe as it currently relies on China for sourcing of lithium chemicals.

“It can be seen that there is a big deficiency in the quality of refining, which Europe has to close,” said CEO Sean Sargent. “Even if all potential European suppliers are successful, there will still be a projected 43 percent deficit of this crucial battery material,” the report explained, noting that it was an area where an extended government push alongside private funding was overdue.

So, while Green Lithium has a strong environmental policy, this is not just a corporate slogan but a business practice. A refinery working with an alkali leach process, utilizing renewable-electrical energy and hydrogen rather than natural gas, and more carbon-consumer measures. This plan seeks a minimum of 75% cut in carbon emissions relative to traditional Chinese refineries, according to an environmental assessment firm known as Minviro that focuses on the life cycle assessments.

In collaboration with the University of Sheffield, Green Lithium is pioneering a patented process to commercialize its primary byproduct, underscoring its innovation-driven environmental stewardship.

“We are enthusiastic about supporting Green Lithium in this fundraising effort,” stated Isobel Sheldon OBE, Chief Strategy and Investment Officer at Prospedia Capital, also a board member at The Faraday Institution. With extensive expertise in electric vehicle battery technology and supply chains, she emphasized, “Green Lithium’s refinery fills a critical gap in Europe’s battery supply chain, supporting localized production and emissions reduction in lithium refining.”