Geothermal Engineering Limited (GEL) will invest around £43 million in a new cutting-edge lithium extraction facility in Cornwall – to help power electric vehicles across the UK.
The investment will create nearly 50 direct jobs and support around 80 more across the supply chain, after GEL received an Offer in Principle worth nearly £10 million through the Government’s DRIVE35 Automotive Transformation Fund.
The move comes as demand for lithium is expected to increase by 1,100% by 2035 and will support hundreds of jobs and shore up Britain’s supplies of lithium. This critical mineral is essential for powering electric vehicle batteries,.
This builds on Tees Valley Lithium’s £185 million investment to establish one of Europe’s largest lithium refineries in Teesside. This investment will support hundreds of jobs and strengthen the UK’s battery supply chain, following a government Offer in Principle for £18.3 million through DRIVE35.
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.
“Britain isn’t just a country for innovation and ideas. It’s a country that produces, and we’re building a modern economy rooted in the industries where we’re already strong and that local communities are proud of.
“Hot on the heels of over £1 billion of automotive investment secured already this month, this latest win is a big step towards building our industrial resilience.”
Dr Ryan Law, CEO of GEL said: “Lithium is fundamental to the technologies underpinning the automotive sector’s transition to zero-emission vehicles. At GEL, we are proud to be at the forefront of establishing a new UK lithium industry, demonstrating how Cornwall’s geothermal brine can provide a reliable and sustainable source of this critical mineral.
“We believe the UK has an important opportunity to develop the resources, technology and expertise needed to establish a domestic lithium supply, giving the country greater control over an increasingly important raw material and we are proud to be building that capability here in Cornwall, bringing jobs and new investment to the local area.”
With commercial production set to begin on GEL’s Cornwall project in 2029, the facility 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 EV car batteries.
The 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, shoring up crucial supply chains and moving Britain forward in the transition towards net zero.