Tees Valley Lithium (TVL) and Canada-based E3 Lithium have agreed on a preliminary framework that could connect lithium production in Alberta with battery-grade processing in the United Kingdom. Under the non-binding heads of terms, lithium carbonate from E3’s Clearwater lithium project in Alberta would be converted into battery-grade lithium hydroxide at TVL’s proposed refinery in Billingham, northeast England.
The framework covers up to 50,000 tonnes of lithium hydroxide over an initial 10-year period. If volumes were distributed evenly, that would equate to approximately 5,000 tonnes per year, although final annual quantities, processing fees and minimum commitments have not yet been established.
UK Refinery Targets 25,000 Tonnes of Lithium Hydroxide
TVL is developing a merchant lithium refinery, rather than a fully integrated mining and processing operation. Its first production train is designed to manufacture approximately 25,000 tonnes of lithium hydroxide per year, with potential expansion eventually taking total capacity above 100,000 tonnes annually.
If the E3 framework becomes a binding agreement and material is delivered evenly over the proposed term, the Clearwater volumes would occupy roughly 20% of TVL’s initial planned capacity. The proposed arrangement would give E3 access to European conversion infrastructure while maintaining its exposure to lithium production upstream.
Clearwater Adds Canadian Lithium to European Supply Chains
E3’s Clearwater project contains what the company describes as Canada’s first declared proven lithium-in-brine reserve, estimated at approximately 1.29 million tonnes of lithium hydroxide monohydrate equivalent. The development is based on direct lithium extraction (DLE) technology, followed by production of lithium carbonate before the material is shipped for conversion.
For TVL, the arrangement could help establish a more diversified feedstock base for its planned UK refinery. For E3, European conversion capacity could provide a potential route into the continent’s growing battery and cathode-material supply chain.
TVL Still Needs Financing and Construction
TVL has previously estimated capital expenditure for its first production train at less than US$245 million and is targeting initial production in early 2028. The company also has a binding agreement with Glencore covering up to 10,000 tonnes of annual lithium hydroxide offtake.The latest E3 agreement remains non-binding and does not yet guarantee refinery utilisation or future revenue. Several commercial variables still need to be resolved. These include the purity of incoming lithium carbonate, conversion recovery rates, reagent and energy costs, transportation from Alberta to Teesside and the allocation of risks associated with off-specification material.
Clearwater itself has also yet to reach full commercial production, while TVL must complete its financing and build the planned refinery. A definitive agreement would represent a meaningful step toward linking North American lithium production with European battery-grade processing. For now, however, the framework demonstrates strategic cooperation rather than providing bankable feedstock revenue or guaranteed refinery throughput.
