Cornwall to Launch £43m Lithium Facility by 2029

Key points

• Geothermal Engineering Limited plans to invest approximately £43 million in a lithium extraction facility in Cornwall, with commercial production targeted for 2029.
• The project is expected to create nearly 50 direct jobs and support around 80 additional roles across the supply chain, totaling over 100 jobs.
• The facility will extract lithium from geothermal brine, producing an initial 1,500 tonnes of technical-grade lithium carbonate per year, sufficient for over 180,000 electric vehicle batteries.
• The UK government has unlocked nearly £230 million in private investment for lithium projects in Cornwall and Teesside, including a £10 million offer from the DRIVE35 Automotive Transformation Fund.
• Officials state the move enhances industrial resilience and supports the net zero transition, with potential to scale production to tens of thousands of tonnes in the future.

Background

This development follows earlier concerns about funding delays in UK lithium projects and aligns with broader government efforts to secure critical mineral supply chains. It also complements recent automotive investments in the UK, including over £1 billion announced this month from Bentley, McLaren, and Nissan, which aim to bolster domestic manufacturing capabilities.

Why it matters

The project reduces UK dependence on imported lithium, strengthens domestic supply chains for electric vehicles and clean energy, and supports regional economic growth in Cornwall. It also advances the UK’s net zero goals by securing a key material for battery production.

What to watch

The facility is expected to begin commercial production in 2029. The government may further expand support for lithium projects in Teesside and other regions, while Geothermal Engineering Limited could scale output to tens of thousands of tonnes annually in the long term.