A new £43 million lithium extraction facility in Cornwall will soon boost Britain’s industrial strength. The project secures critical domestic supply chains for electric vehicles, artificial intelligence, and clean energy manufacturing.
Geothermal Engineering Limited (GEL) leads the multimillion-pound investment. Crucially, the company holds an Offer in Principle for nearly £10 million from the government’s DRIVE35 Automotive Transformation Fund.
The new site creates nearly 50 direct, highly skilled jobs in the South West. Additionally, the project supports around 80 extra roles across the wider supply chain. Commercial production at the Cornwall facility begins in 2029.
Unlocking Local Mineral Wealth for National Growth
Engineers are reimagining Cornwall’s historic mining landscape. Today, the region forms the heart of Britain’s green industrial strategy. GEL extracts technical-grade lithium carbonate from deep underground geothermal brine. Consequently, the team plans to produce roughly 1,500 tonnes of lithium each year. That output provides enough power for more than 180,000 electric vehicle batteries.
Furthermore, the facility can scale up production significantly in the future. The team aims to produce tens of thousands of tonnes as demand grows.
Analysts expect global demand for lithium to surge by 1,100% by 2035. Therefore, the government is backing domestic extraction to safeguard UK industry. Ministers have now unlocked nearly £230 million in private investment across two major Cornish and Teesside projects. For example, Tees Valley Lithium is building a £185 million refinery in Teesside, backed by £18.3 million from the DRIVE35 fund.
Strengthening Supply Chain Security
Securing a reliable UK-based source of critical minerals reduces reliance on volatile global supply lines and concentrated international markets.
Speaking on the announcement, Business Secretary Jonathan Reynolds emphasised the significance for local industry: “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.”
Dr Ryan Law, CEO of GEL, highlighted the technical capability being developed in the region: “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.”
Julian Hetherington, Automotive Transformation & Engagement Director at APC and Zenzic, noted that domestic lithium processing mitigates critical risks associated with concentrated international supply chains, while building a vibrant advanced materials cluster in the South West.
Part of a £4 Billion Automotive Reindustrialisation Push
The announcement follows more than £1 billion in wider UK automotive investments secured recently across major manufacturers, including Bentley, McLaren, and Nissan.
Delivered by the Department for Business, Innovation, Science and Trade (BIST) in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK, the DRIVE35 programme will deploy £4 billion in capital and R&D grant funding through 2035 to accelerate zero-emission vehicle manufacturing.
Recent DRIVE35 support also includes research and scale-up initiatives with Cornish Lithium, Watercycle Technologies, Weardale Lithium, and Northern Lithium, establishing a comprehensive UK supply ecosystem from raw extraction to advanced battery assembly.
