(Bloomberg) -- Tees Valley Lithium struck a preliminary deal to supply raw materials to the preferred buyer of collapsed UK battery startup Britishvolt Ltd.

The early-stage lithium refiner signed a memorandum of understanding to supply toll-processed lithium to Recharge Industries, which has been selected as the preferred bidder for the majority of the insolvent battery firm’s business and assets. Tees Valley plans to produce the lithium at a refinery in the northeast of England that’s set to start operation in 2025.

Once considered Britain’s best shot for a homegrown electric-vehicle battery supplier, Britishvolt went into bankruptcy last month after failing to identify any potential rescuers. Recharge Industries, founded in 2021, is also currently building a battery factory in Geelong, near Melbourne in Australia. 

Recharge has sought Tees Valley’s support “to safeguard the supply of critical minerals” for both the Geelong plant and the Britishvolt project, the companies said in a joint statement on Tuesday.

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