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Green Lithium Single Company EIS

Building the UK’s first merchant lithium refinery

Highlights

This round has £2m of EIS coverage available, on a pre-money valuation of £50m

  • A merchant lithium refinery development company, with a replicable model, creating 50,000 tonnes of output of battery-grade lithium chemicals
  • £6m funds secured to date
  • 10% of funds secured are from the UK Government’s Automotive Transformation Fund
  • Named in the UK Government’s Critical Minerals Strategy
  • Partnered with Trafigura, a global commodity trading house
  • Refinery site secured in optimal low-carbon industrial zone in Teesside
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The overview information provided on this website is based on the data representations contained in the EIS Investor Deck provided by the firm ‘Green Lithium’.

Kemeny Capital has reviewed but not independently verified or scrutinised it. The information and documentation provided should be reviewed carefully. To help you make better decisions, take time to understand both the opportunities and risks of any investment you’re considering. 5 questions to ask before you invest.

  • Type: Single Company EIS

  • Total raised to date: £6m

  • Sector: Clean Technology

  • Minimum: £5,000

  • Funds Sought: £2,000,000

  • Deadline: 30th May 2023

  • Target Return: 20x*

    *Company issued target

Summary

Green Lithium’s mission is to increase the supply of low-carbon lithium chemicals.

You can visit their website or request a meeting with the team here.

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About Green Lithium

Green Lithium plan to build one of Europe’s first large-scale lithium refineries at PD Ports in Teesside, UK. The creation of this substantial facility will begin to meet the urgent needs of the battery manufacturing and automotive sectors within the UK and the EU.

  • The proposed refinery will have flexibility of feedstock and produce battery-grade lithium chemicals to meet the demand of OEMs and Cathode manufacturers.
  • Green Lithium is targeting a highly-sustainable process that will produce lithium chemicals with a lower carbon impact than the market currently.
  • Green Lithium aims to enhance circular economies in the battery value chain and is currently developing IP around the re-use of the process byproduct.

UK Government Backing

“We’re backing companies, like Green Lithium here in Teesside, to grow the new, green industries across the UK, sparking jobs and growth for decades to come.”

– Grant Shapps, Secretary of State for the Department for Energy Security and Net Zero

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The Market

Lithium demand is forecasted to increase due to EV production.

  • The UK and EU markets are forecast to require over 800,000 tonnes of refined lithium a year*
  • China currently dominates lithium refining and Europe is wholly dependent on their products
  • Existing lithium refining is environmentally unfriendly
  • There will be UK and Europe-wide bans on internal combustion engines in 2035
  • The European market is currently valued at $1bn and is expected to rise to $12bn by 2030*
  • Carmakers are driving demand by launching 400+ new EV models between now and 2025**

*Benchmark Mineral Intelligence 
**Bloomberg

Business Model

The nature of Green Lithium’s merchant model means that it is not tied to any specific mine or feedstock. This will help to unlock the market bottleneck by refining feedstock from a variety of geographies, whilst ensuring end-product flexibility to meet changes in market requirements.

Green Lithium has commissioned a life cycle assessment by Minviro. This shows that carbon emissions will be substantially lower than current Chinese refineries and the decarbonization case will produce 75% lower emissions.

Green Lithium will unlock UK circular economy opportunities in battery recycling and is currently developing IP around the commercial use of its byproduct to support other industries.

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Team

Sean Sargent, Chief Executive Officer

31-year track record leading and delivering multi-billion-pound, critical infrastructure projects ranging from £100m to £15bn, with recent director positions at Jacobs and project/site director roles at Magnox, among others.

Dominic Kieran, Non-Executive Chairman

25-year career with extensive and diverse skills and knowledge in sectors and projects relevant to Green Lithium, including at Babcock International (current Babcock Nuclear CEO), Cavendish Nuclear, Urenco and U-BATTERY.

Jo Charles, Chief Financial Officer

12 years of career experience, most recently in investment banking at Rothschild & Co – other roles include corporate valuations and transaction advisory services at KPMG, where he qualified as a Chartered Accountant.

Guy Hatcher, Head of Strategic Business Development & Co-Founder

Member of the British Standards Institute committee for lithium, with 13 years’ experience in mining and mineralogy, including at Barrick Gold and Rio Tinto, and recently evaluating prospective lithium mining sites in the UK.

Richard Taylor, Head of Marketing & Co-Founder

Company founder and vision behind the Green Lithium project with general energy and natural resources market/sector knowledge built over a 12-year career with roles at Petrofac, Maersk Oil and Deloitte.

Alex Cheeseman, Non-Executive Director

21-year career, now as a lithium mineral exploration CEO at Critical Resources, with recent experience at Morella Corporation and at Altura Mining, negotiating high-value lithium mineral offtake contracts, and at BHP Billiton Western Australia Iron.

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Project Financial Projections

Revenue £970m
Spodumene Cost £376m
Production Cost £200m
EBITDA at 41% Margin £394m
Ungeared Cashflow £299m

IMPORTANT: The above is a forecast only and is not guaranteed, and investors capital is at risk. These forecasts are provided by Green Lithium. Please download the Investment Deck for further details.

Risks

As with all offers found on Kemeny Capital’s website, this offer is exclusively aimed at UK resident persons who are required to self-certify as either a Sophisticated Investor or High Net Worth Individual.

The value of investments may go up as well as down and there is no guarantee of any investment return. Investments in private companies carry significant risks including loss of capital, illiquidity, and no guarantee of regular income from the investment. You should understand the risks involved and be capable of making investment decisions based upon your personal circumstances. Past Performance is not an indicator of future performance.

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ESG & Impact

Green Lithium’s operations have the potential to be at the forefront of low-carbon lithium chemical production, enabling our planet’s transition to sustainable energy.

Green Lithium supports UN Sustainable Developments Goals 9 (Industry, Innovation and Infrastructure), 7 (Affordable and Clean Energy), and 13 (Climate Action).

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