An offer in principle has been made to Geothermal Engineering Ltd for government capital grant funding, of up to £9.8 million.  

The grant will go towards the production of an initial 1,500 tonnes per annum of technical grade lithium carbonate from 2029 at its facility in Redruth, Cornwall, creating 49 direct local jobs and supporting 83 indirect jobs in the wider supply chain. 

The offer comes via the Automotive Transformation Fund, which is part of the UK Government’s DRIVE35 programme, delivered by the Department for Business, Innovation, Science and Trade (BIST), in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.  

Julian Hetherington, Automotive Transformation & Engagement Director, APC and Zenzic, said: 

“The project aligns with the UK’s Critical Minerals Strategy 2035 by expanding domestic production of critical minerals, reducing reliance on imports. Extracting lithium in the UK 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 UK’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.” 

The Geothermal Engineering site uses Direct Lithium Extraction (DLE) technology, avoiding the need for conventional mining or evaporation ponds. It is powered by energy generated from the site’s geothermal wells, creating a low-carbon production process (potentially one of the lowest-carbon sources of lithium in Europe) and returns the water underground, key to avoiding environmental impacts. 

Lithium concentrations at the site are among the highest reported in European geothermal resources, helping to reduce processing requirements. 

This announcement closely follows the offer in principle to Alkemy Capital Investments plc (Alkemy), the 100% owner of Tees Valley Lithium Ltd (TVL), for government capital grant funding of up to £18.3 million. Both offers underpin the UK government’s commitment to a zero-emission future. 

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