The 海角视频's first lithium hydroxide plant on Teesside could generate gross revenues of £49.2bn and supply 15% of the demand for the 海角视频 and EU's electric vehicle manufacturing needs.
A study commissioned by the company behind Tees Valley Lithium's plans to bring Europe's largest factory to a 9.6 hectare site at Wilton International Chemical Park, part of Teesside Freeport, suggests it will initially cost £216m to set up and £1.49bn over its 30-year lifespan.
Alkemy Capital Investments plc says the feasibility study - part of efforts to get the plant operational by late 2023 - shows it could eventually produce 96,000 tonnes of a premium, low-carbon lithium hydroxide annually. An estimated 400 jobs could be created at the plant.
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Discussions are already under way with vehicle and battery manufacturers as Tees Valley Lithium hopes to become a key supplier to giga factories across Europe. The firm says it is confident it will secure customers for 100% of its production.
Sam Quinn, director of Alkemy and Tees Valley Lithium, said: "This feasibility study is a major milestone for Alkemy and its 100% owned subsidiary Tees Valley Lithium.
"We are moving quickly to establish a major independent and sustainable lithium hydroxide producer at the Wilton International Chemical Park in the Teesside Freeport and are pleased with the validation that this independent feasibility study brings to our project.
"At full production, Tees Valley Lithium will produce 96,000 tonnes of battery-grade lithium hydroxide per annum and will be a major supplier to the 海角视频 and European electric vehicle industry."
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Tees Valley Lithium says it has chosen the Wilton International site for its proximity to potential customers, the "plug and play" infrastructure available at the site and its nearby port facilities for exporting.
The firm says its on track to submit a planning application in May and expects to receive approval in July.
If successful, production would be split across four "trains" comprising two different chemical processing routes.
The £216m initial cost estimate for the project is based on Tees Valley Lithium first using an engineering process known as Glauber's Salt Route - commonly used in China and Australia. It involves the raw material - lithium sulphate monohydrate (LSM) - being dissolved in water before impurities are removed in two stages. Purified "liquor" solution is then pumped to a lithium hydroxide reactor where caustic is added to create a chemical reaction.
The resulting Glauber's Salt is removed from the solution and transferred to a sodium sulphate anhydrous crystallization circuit - a three-stage lithium crystallisation circuit which results in the end product being bagged and dispatched to customers. The process creates a by-product - anhydrous sodium sulphate - which can be sold into European markets.
A second, more expensive, process known as the electrochemical route, would be used for subsequent production "trains". This route is expected to cost £280.8m and Tees Valley Lithium says the by-product gypsum can be sold in the North East, which is a net importer of gypsum.