A lithium refinery planned for Billingham could deliver a £2.1 billion economic boost to the UK, with £1 billion benefiting Teesside and the North East, according to developer Tees Valley Lithium (TVL).
Job Creation and Economic Impact
TVL states its proposed refinery at the Billingham Chemical Complex will create nearly 1,700 positions: 66 direct jobs, 517 roles across the supply chain, and approximately 1,100 jobs during construction. The company forecasts the UK's first refinery of its kind will inject £2.1 billion into the economy over 25 years, equating to £83 million annually, with £1 billion remaining in the Tees Valley and North East.
The £185 million scheme is expected to generate £11.20 of economic value for every pound of capital expenditure. TVL has pledged a local employment preference policy, training opportunities, and apprenticeships, with average annual wages for operational roles exceeding £55,000 and all production positions above £39,000.
Environmental and Supply Chain Benefits
TVL's impact assessment says the facility will produce 25,000 tonnes of battery-grade lithium hydroxide monohydrate (LHM) annually, reducing UK and European reliance on China. The plant will run on 100% renewable electricity from day one, providing enough material to power over 500,000 electric vehicles per year.
CEO Vikki Jeckell said: "TVL's investment in Billingham is not a short-term project. It is a 25-year commitment to the Tees Valley, to its people, its economy, and its future." She added that Teesside's chemical heritage and infrastructure make it the ideal home for next-generation chemical production.
Rooted in Teesside's Heritage
TVL's report states: "With a capital investment of £185 million and a site benefiting from world-class port and industrial infrastructure, TVL is positioned to deliver measurable, lasting benefit across three dimensions: economic, environmental and social." The facility is rooted in Teesside's century-long chemical engineering heritage, connecting ICI's legacy to tomorrow's electric vehicle supply chains.
Access to domestic battery-grade LHM is a prerequisite for UK battery investment. TVL removes this bottleneck, enabling the UK to capture more of the EV value chain and support high-value advanced manufacturing.
High-Wage, Permanent Jobs
TVL projects £33 million per year in indirect and induced GVA through supply chain and employee spending, plus £485 million in UK supply chain GVA from lithium feedstock procurement over 25 years. Impacts extend across chemicals, advanced manufacturing, logistics, and engineering services, all sectors with a strong North East presence.
The facility will save 300,000 tonnes of CO2 annually compared to using Chinese-refined LHM, with total annual emissions savings of approximately 1.4 million tonnes CO2 equivalent, equal to powering almost 700,000 UK homes.
Unlike many regeneration projects, TVL's facility creates high-wage, technically skilled, permanent jobs. Approximately 80% of roles are suitable for non-graduates, offering accessible, well-paid employment. The company will launch a community benefit programme to support education, facilities, and green spaces.
Planning and Site Details
TVL has contacted Stockton Council about seeking planning permission for the UK's first large-scale lithium refining facility. The site was initially earmarked for Wilton in Redcar, with planning consent secured in November 2022, but TVL shifted focus to Billingham, where it can purchase land outright. The proposal involves constructing a lithium hydroxide monohydrate facility on a nearly 10-acre derelict industrial plot within the Billingham Chemical Complex.
