Geothermal Engineering Limited (GEL) has announced plans to invest about £43m in a lithium extraction facility in Cornwall, a project that could create around 130 jobs. The company said it received a pledge of support from the government as part of efforts to boost industrial resilience and secure vital supply chains for the automotive, clean energy and advanced manufacturing sectors.
Government support and production timeline
Ministers have confirmed a £10m 'offer in principal' to support the project. Commercial production is set to begin on GEL's Cornwall project in 2029, with the facility 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.
Lithium is used for making batteries for electronic items such as electric vehicles. The move comes as demand for lithium is expected to increase by 1,100 per cent by 2035. The government has now taken action to unlock nearly £230m of private investment into two lithium projects in Cornwall and Teesside.
Industry and political reaction
Dr Ryan Law, chief executive of GEL, said: "Lithium is fundamental to the technologies underpinning the automotive sector’s transition to zero-emission vehicles. 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."
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."
Economic impact and supply chain benefits
The government said the lithium produced will give a huge boost to the UK’s EV battery manufacturing. Julian Hetherington, automotive transformation and engagement director, APC and Zenzic, said extracting lithium in the UK diminished dependence on supply chains "dominated by China".
"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," he added.
