UK’s First Merchant Lithium Refinery In Final Phase Of EIS Fundraising

Green Lithium, a company at the forefront of constructing the UK's first low-carbon merchant hard-rock lithium refinery, is poised to disrupt the market by offering an alternative supply chain to China for European battery production. In collaboration with Prospedia Capital, an emerging fundraising specialist in the automotive sector, Green Lithium aims to raise up to £2.6 million through seed and venture capital. This funding will be covered under the UK's Enterprise Investment Scheme (EIS), which provides tax breaks for angel investors and taxpayers investing in venture capital funds.To mitigate risks and ensure a successful business model, Green Lithium has taken significant steps. They have secured over £14 million in private investments and government grants for crucial aspects of their operations, including trials, engineering studies, and capital expenditure reports. Additionally, the company has strategically chosen a site in Teesside and assembled a high-caliber management team and board of directors. With over £1 million already pledged, this round of early-stage investment will pave the way for institutional funding and the construction of a scale-up plant.The construction of the UK's first merchant hard-rock lithium refinery is a strategic move to meet the projected surge in demand for battery-grade lithium chemicals by 2030. As European carmakers transition to full-scale electric vehicle production, there is a pressing need for a local supply chain. Currently, Europe relies heavily on China for its lithium chemicals supply, creating a 43% deficit in the market. Sean Sargent, CEO of Green Lithium, emphasizes the importance of government involvement and private investment in addressing this issue.Green Lithium is committed to environmental sustainability. They have adopted an alkali leach process instead of an acid roast process, use renewable energy sources whenever possible, and employ other carbon-reducing strategies. According to a life cycle assessment by Minviro, their carbon emissions are expected to be 75% lower than existing Chinese refineries. Furthermore, the company is collaborating with the University of Sheffield to develop a patented process for commercializing their primary byproduct.Isobel Sheldon OBE, Chief Strategy and Investment Officer at Prospedia Capital and a member of The Faraday Institution's Board of Trustees, commends Green Lithium's refinery as a much-needed addition to Europe's supply chain. By localizing supply chains and scaling up battery production, carmakers can reduce emissions from lithium refining. Teesside, with its industrial skills and strategic access to Net Zero Teesside, is an ideal location for the facility.The first step for Green Lithium is to build a demonstration scale-up plant, capable of producing 1,250 tonnes of high-quality lithium chemicals annually. This will generate revenues of £28 million before the completion of the full-scale plant, which will have a production capacity of 50,000 tonnes of lithium chemicals, sufficient for 1.2 million battery electric vehicles. The current funding round aims to finalize operational readiness, planning permissions, and contracts with key suppliers for the scale-up plant. It will also prepare the company for institutional fundraising and construction in 2024.Jo Charles, CFO of Green Lithium, highlights the potential investment return of 15x once the scale-up plant is operational. The UK's EIS scheme significantly mitigates risks for early-stage investors while protecting them from certain tax liabilities. As a knowledge-intensive company recognized by HMRC, Green Lithium can raise up to £20 million each financial year using EIS tax relief.Investors interested in Green Lithium can access the deal room on Prospedia Capital's FCA-compliant investment platform. However, it is important to note that investment in startups carries high risks alongside the possibility of high rewards. Lack of liquidity, loss of investment value, and dilution of shareholding are among the risks involved.Green Lithium's refinery project represents a significant opportunity to improve the European battery-metal supply chain and support the transition to a green economy. With strategic partnerships, a commitment to environmental sustainability, and strong investor interest, Green Lithium is poised to revolutionize the lithium market in Europe.For more information about Green Lithium, please visit their website at greenlithium.co.uk. To learn more about Prospedia Capital and their investment opportunities in advanced automotive technologies, visit prospediacapital.com.