Plans have been approved for Europe’s largest lithium hydroxide refinery on Teesside which would produce material for electric vehicle batteries.

Tees Valley Lithium will build on Wilton International Chemical Park, near Redcar, and part of the Teesworks freeport.

The £248m project could create 1,000 jobs, including its construction phase, with production to begin in 2025.

Planning permission was granted by Redcar and Cleveland Borough Council.

Around 89% of the world’s lithium processing currently takes place in East Asia.

The business said the site would be capable of producing lithium hydroxide and lithium carbonate, which are critical for manufacturing batteries, and would be sourced from imported raw materials from South America and lithium producers in Australia and elsewhere.

Sam Quinn, director of owner Alkemy, said construction was due to commence in 2023.

“Our strategic decision to locate in the Wilton International Chemicals Park, with direct access to comprehensive infrastructure and services and within the Teesside Freeport enables us to get into first production by 2025 and begin supplying our low carbon battery-grade lithium to customers spanning the UK and Europe.”

The move was backed by Conservative Tees Valley Mayor Ben Houchen and PD Ports chief executive Frans Caljé.

Mr Houchen said it would create “good quality jobs” while Mr Caljé praised further investment coming to the Tees Valley.

Two other plans to set up businesses at Teesport within the electric vehicle industry were revealed earlier in November, one of which received a £600,000 government grant.

It comes just weeks after Britishvolt, which wants to set up an electric vehicle battery factory in Blyth, Northumberland, avoided collapse.