Cornwall Lithium to Boost U.K. Critical Minerals Push

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K.'s efforts to shore up its own supplies of critical minerals advances with another lithium-focused facility promised for the Cornwall region in the southwest of the country.

Lithium Push

The U.K.'s push for the critical mineral lithium has been boosted by the news that Geothermal Engineering Ltd. (GEL) will invest £43 million (US$58 million) in a new lithium extraction facility in Cornwall, using brine from existing geothermal wells.

The facility will be located at GEL's United Downs site with commercial production set to begin in 2029. It is expected to produce around 1,500 tonnes of technical-grade lithium carbonate from geothermal brine underground each year -- enough to power more than 180,000 typical electric vehicle (EV) car batteries. It comes hot on the heels of recent news that the government was financially backing the construction of the U.K.'s first lithium hydroxide refinery in Teesside. GEL stated that its facility has "the potential to scale to producing tens of thousands of tonnes in the future and the lithium produced will give a huge boost to the UK's EV battery manufacturing." According to Industrial Info Resources data, there are 16 U.K. lithium-related projects worth more than US$4 billion in investment. 

Government Support

The United Downs expansion project has received an Offer in Principle worth nearly £10 million (US$13 million) from the government's DRIVE35 Automotive Transformation Fund (ATF). It offers grants for large-scale capital investment in zero-emission vehicle manufacturing and supply chain components. That includes vehicle assembly, new or upgraded plants, batteries and gigafactories, electric motors and drives, power electronics, fuel cells, upstream supply chain and recycling. U.K. Business Secretary Jonathan Reynolds said: "Cornwall has a proud mining heritage, and companies like Geothermal Engineering are helping to write its next chapter in unlocking the South West's industrial potential. Hot on the heels of over £1 billion (US$1.3 billion) of automotive investment secured already this month, this latest win is a big step towards building our industrial resilience."

Homegrown Lithium

Demand for lithium in the U.K. is expected to increase by 1,100% by 2035, according to government data. The country is almost entirely reliant on imports, mostly from 

Chile, Argentina, the U.S. Australia and China. "The project aligns with the U.K.'s Critical Minerals Strategy 2035 by expanding domestic production of critical minerals, reducing reliance on imports," explained Julian Hetherington, Automotive Transformation & Engagement Director at the U.K.'s Advanced Propulsion Center. "Extracting lithium in the U.K. is vital for several reasons: it diminishes dependence on supply chains dominated by China and supports the production of electric vehicle batteries, essential for the U.K.'s transition to renewable energy use in zero emission vehicles. In addition, the lithium extraction is expected to spark significant economic growth, especially in Cornwall where a vibrant materials cluster is developing at pace, while enhancing resilience by diversifying the supply chain and mitigating risks tied to concentrated global lithium production and processing."

Flurry of Activity

September has been a very active month for U.K. critical minerals efforts. At the start of the month, the government announced that it was backing the restart of the Hemerdon tungsten mine, also in the south west of the country. In return for £71 million (US$96 million) in support the government will secure the rights to procure 50% of its annual tungsten production, a critical mineral essential defence, aerospace and energy applications. Last week, the government promised investment into the country's first lithium hydroxide refinery in Teesside.  Developer Alkemy Capital said the refinery, which has a start up date of 2028, will be capable of producing 25,000 tonnes per annum (TPA) of battery grade lithium hydroxide monohydrate (LHM) - enough for use in the batteries of 550,000 EVs. For additional information, see September 29, 2026, article--U.K. Backs First Lithium Processing Refinery.

Key Takeaways

• Geothermal Engineering Ltd. (GEL) will invest £43 million (US$58 million) in a new lithium extraction facility in Cornwall.
• It will produce around 1,500 tonnes of technical-grade lithium carbonate from geothermal brine each year -- enough for more than 180,000 EV car batteries.
• Industrial Info Resources is tracking 16 U.K. lithium-related projects worth more than US$4 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).