The UK’s first large-scale merchant lithium refinery has been approved, providing a major boost for the home-grown electric vehicle (EV) industry.
The Green Lithium refinery will aim to provide 50,000 tonnes of battery-grade lithium a year, which would be enough to power more than a million vehicles.
The facility, which will be based in Teesport, Middlesbrough, will create more than 1,000 jobs while it is being built, and a further 250 permanent high-skilled jobs when it enters into production.
Lithium is a crucial component in current batteries, especially those used in EV technology.
The vast majority (89%) of lithium production takes place in East Asia, and there are currently no major refineries in Europe.
According to researchers from Gavekal, China alone refines three-fifths of global lithium supplies, as well as producing 77% of global battery cells and 60% of battery component manufacturing.
Green Lithium aims to be the first large-scale merchant lithium refinery outside Asia.
While EV batteries will be a primary destination for much of the lithium produced at the facility, the metal can also be used in other parts of renewable energy, supply chains and consumer technology.
More battery capacity needed to drive change to electric
Until now, the UK has been reliant on battery imports from East Asia for its EV industry.
The presence of a home-grown producer could be an important step in the move to electric technology, with the sale of new petrol and diesel vehicles set to be phased out from 2030.
According to the Green Finance Institute, the UK will have to greatly increase its current battery capacity of around 2GWh to more than 90GWh to keep the automotive industry at its current size while switching to electric.
Lauren Pamma, the institute’s programme director, said that building a home-grown supply chain was a key part of that aim.
She added that the new lithium plant provided a good example of how public and private sectors could work together in these areas.
Green Lithium was bolstered by a £600,000 injection of government money, delivered via the Automotive Transformation Fund.
Business secretary Grant Shapps said that along with growing green industries in the UK, this was helping to secure EV supply chains against global events and geopolitical threats.
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