Geothermal Engineering Limited is preparing to invest around £43m in a new lithium extraction facility in Cornwall, supported by an offer in principle of almost £10m from the government’s DRIVE35 Automotive Transformation Fund.
The project is expected to create nearly 50 direct jobs and support around 80 more across the supply chain, adding domestic production of a mineral increasingly important to electric vehicle batteries, energy storage, and advanced manufacturing.
Commercial production is scheduled to begin in 2029. The facility is expected to produce around 1,500 tonnes of technical-grade lithium carbonate a year from geothermal brine beneath Cornwall — enough, on government estimates, for more than 180,000 typical electric vehicle batteries.
The project could subsequently expand well beyond its initial capacity. GEL says the resource and extraction process have the potential to support annual production running into tens of thousands of tonnes, although further development would depend on investment, permitting, demand, and the performance of the first commercial phase.
Dr Ryan Law, chief executive 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.”
The company has developed a process that combines geothermal power generation with extraction of critical minerals from the same underground brines. Its United Downs site already includes a lithium demonstration plant, giving the business an operating base from which to scale its technology.
The investment arrives as manufacturers and governments seek greater resilience in mineral supply chains that remain highly concentrated internationally. Lithium demand is being driven by electric vehicles, battery manufacturing, renewable energy systems, and other technologies that require large volumes of processed material.
The government expects UK lithium demand to increase sharply through the next decade. That creates pressure to secure more diversified sources of supply while reducing exposure to commodity-price volatility, geopolitical disruption, and dependence on a limited number of processing markets.
The Cornwall project forms part of a wider attempt to build domestic critical-mineral capacity alongside battery and vehicle manufacturing. The government has also backed a planned lithium refinery in Teesside, with the two developments together associated with almost £230m of private investment.
Neither project will eliminate the UK’s reliance on imported material. Battery production depends on several minerals, as well as refining, processing, component manufacture, and cell production. Domestic extraction instead adds another source to a system likely to combine UK production, recycling, international supply agreements, and imported processed materials.
The economics of new lithium projects remain sensitive to global prices. A period of strong investment in new mines and processing capacity internationally has increased supply, while electric vehicle growth rates and battery technology continue to affect demand forecasts. Projects with high development costs therefore need to compete against established producers as well as other emerging sources.
GEL’s approach differs from conventional hard-rock mining because the lithium is extracted from geothermal brine. The company argues that combining mineral recovery with renewable power generation can reduce land requirements and improve the environmental profile of production, although commercial-scale performance will become clearer as capacity increases.
Skills and infrastructure will also influence the pace of expansion. Cornwall has a long mining history and a growing cluster of businesses working in geothermal energy, lithium, mineral processing, and mining technology, but commercial projects require specialist engineering, processing expertise, finance, and reliable routes to customers.
The DRIVE35 funding offer remains subject to due diligence and final approval. The programme is expected to provide £4bn in capital and research and development support through to 2035, focused on investment linked to the automotive sector’s transition to zero-emission vehicles.
If production begins on schedule in 2029, the Cornwall facility will provide an early commercial test of whether Britain can convert its critical-minerals ambitions into sustained domestic output. Its initial capacity will remain small against the scale of expected demand, but it would create another UK link in a battery supply chain that is becoming increasingly important to automotive and clean-energy manufacturing.
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