Redivium Limited confirms a setback in securing its Wrexham recycling plant lease but maintains strong project fundamentals and explores innovative refining technology to boost UK battery material production.
- Wrexham lease agreement falls through due to delays amid recapitalisation
- Core supply, EPC, and offtake contracts remain intact and active
- Company reviewing alternative UK sites with feasibility study updates underway
- Evaluating modular refining technology to produce battery-grade hydroxide
- Potential to scale refining capacity to 6,000 tonnes annually in the UK
Setback in Site Acquisition
Redivium Limited, an emerging player in lithium-ion battery recycling, has announced it will not proceed with the previously negotiated lease for its planned UK recycling facility in Wrexham. The delay stems from extended negotiations linked to the company's ongoing recapitalisation process, which, while expected to strengthen financial covenants, has not aligned with the landlord's timeline. Despite this, Redivium describes the setback as minor and immaterial to the overall project.
Project Fundamentals Remain Robust
Importantly, Redivium reassures investors that all other critical project components remain firmly in place. The company retains a multi-year contracted supply of lithium-ion battery feedstock through G&P Battery Recycling Limited, an intact engineering, procurement, and construction (EPC) agreement, and a guaranteed offtake contract with WMC Energy BV for the processed black mass. These agreements underpin the commercial viability of the UK project despite the need to find a new site.
Searching for a New Home and Updating Feasibility
With the Wrexham lease off the table, Redivium is actively reviewing a shortlist of alternative properties. This necessitates reworking parts of the feasibility study, particularly those elements tied to location-specific environmental impact, permitting, and facility layout. The company intends to promptly update these studies once a new site is selected, signalling a commitment to maintaining momentum in project development.
Exploring Modular Refining Technology
Beyond site logistics, Redivium is evaluating a modular refining solution that could enable the production of battery-grade hydroxide from the recycled black mass. This technology, still in early assessment stages, has been successfully deployed elsewhere and offers an attractive cost and operational profile. If adopted, it could position Redivium as a pioneer in integrated commercial-scale battery recycling and refining in the UK, with an initial capacity of 2,000 tonnes per annum and scalability up to 6,000 tonnes.
Strategic Outlook
Executive Director Michael O'Leary-Collins emphasised that while the lease delay is disappointing, the project's foundation remains strong thanks to secured feedstock and offtake agreements. The potential integration of modular refining technology represents a strategic leap, embedding Redivium deeper into the UK’s emerging battery materials supply chain. The company is focused on completing its recapitalisation to ensure uninterrupted project progress.
Bottom Line?
Redivium’s UK battery recycling ambitions face a site hurdle but remain on track with promising refining innovations ahead.
Questions in the middle?
- Which alternative UK sites are under consideration, and what timelines apply for final selection?
- How will the integration of modular refining technology impact overall project capital expenditure and operational costs?
- What are the potential market implications if Redivium successfully scales refining capacity to 6,000 tonnes annually?