Green Lithium, a trailblazer in developing the UK’s first low-carbon merchant hard-rock lithium refinery, is poised to challenge China’s dominance in European battery supply chains. The company has teamed up with Prospedia Capital, a specialist in automotive sector fundraising, to secure up to £2.6 million through the UK’s Enterprise Investment Scheme (EIS). This scheme offers tax incentives for early-stage investors.

Green Lithium has already mitigated many risks by securing over £14 million from private investments and government grants for essential business activities like pilot trials and engineering studies. They have also selected a strategic site in Teesside and assembled an experienced management team.

With more than £1 million already committed, this funding round precedes institutional investment aimed at building a scale-up plant. The ultimate goal is constructing the UK’s first merchant hard-rock lithium refinery to meet rising demand for battery-grade lithium chemicals by 2030 as Europe shifts towards electric vehicles.

“Europe faces significant challenges,” says CEO Sean Sargent. “The refining bottleneck means even successful European suppliers will fall short by 43%. Government support alongside private investment is crucial.”

Green Lithium’s environmental initiatives include using an alkali leach process instead of acid roast, renewable energy sources when available, and other carbon-reducing strategies—aiming for a 75% reduction in emissions compared to Chinese refineries according to Minviro’s life cycle assessment.

Collaborating with the University of Sheffield on commercializing its primary byproduct further underscores Green Lithium’s commitment to sustainability.

“We’re thrilled about aiding Green Lithium,” said Isobel Sheldon OBE of Prospedia Capital.
“This refinery will help localize supply chains while scaling up battery production.”

The Strategic Location

• Teesside: Chosen for its industrial skills and access via sea, rail, road; proximity to Net Zero Teesside carbon capture project.

The initial step involves building a demonstration plant producing 1,250 tonnes annually—potentially generating revenues of £28 million before completing the full-scale facility capable of producing enough lithium chemicals for 1.2 million electric vehicles annually.