The UK is set to expand domestic lithium production after Geothermal Engineering Limited announced plans to invest about £43m in a Cornwall extraction facility that it expects to bring into commercial production in 2029. Officials say the development will support the automotive, clean-energy and advanced manufacturing sectors while creating jobs in the region.
Jobs, supply chains and scaling potential
Company and government figures indicate the facility will create nearly 50 direct jobs and support approximately 80 further roles across the supply chain, amounting to more than 100 positions overall. The project has also been linked to wider moves to unlock private capital, with ministers and industry sources saying almost £230m of private investment has been mobilised for two lithium projects in Cornwall and Teesside.
- Investment by Geothermal Engineering Limited: ~£43m
- Government support: near £10m offer in principle via the DRIVE35 Automotive Transformation Fund
- Expected annual production: ~1,500 tonnes of technical-grade lithium carbonate from geothermal brine
- Estimated batteries supported: enough for more than 180,000 typical EV batteries per year at current output
Officials said the site could be scaled up over time, potentially reaching production measured in the tens of thousands of tonnes annually, though no firm timeline for expansion has been given.
Government framing and industry context
Business Secretary Jonathan Reynolds described the announcement as a step towards strengthening the nation's industrial base, noting it would help «unlock the region's industrial potential» amid a wider wave of automotive investment. Ministers pointed to recent news of roughly £1bn of investment from manufacturers including Bentley, McLaren and Nissan as evidence of momentum in the sector.
"Hot on the heels of over £1bn of automotive investment secured already this month, this latest win is a big step towards building our industrial resilience," said Jonathan Reynolds.
The firm’s chief executive framed the project as an opportunity to develop domestic capability in both raw materials and the technologies needed to extract them. He said the UK could build a home-grown supply chain for lithium that would deliver local jobs and investment.
"We are proud to be building that capability here in Cornwall, bringing jobs and new investment to the local area," said Dr Ryan Law, CEO of Geothermal Engineering Limited.
Why lithium matters and the limits of the project
Lithium is a core component for lithium-ion batteries used in electric vehicles and many energy storage systems. Government commentary accompanying the announcement cited projections that demand for lithium is expected to rise sharply — by about 1,100% by 2035 — reinforcing the case for securing domestic supply chains.
At the current proposed output of around 1,500 tonnes of technical-grade lithium carbonate a year, the Cornwall facility would supply enough material to produce batteries for more than 180,000 typical electric cars annually. While significant, officials stress this is an initial phase and that nationwide demand will still require broader supply solutions.
| Measure | Value |
|---|---|
| Estimated initial investment | ~£43m |
| Offer in principle from DRIVE35 | ~£10m |
| Expected annual lithium carbonate output | ~1,500 tonnes |
| Jobs (direct) | ~50 |
| Jobs (supply chain) | ~80 |
Industry observers and ministers argue that growing domestic extraction could help shield UK manufacturers from volatile global markets and increasingly strained international supply chains for battery materials. Yet the announced figures represent an early stage project rather than a wholesale replacement for imports.
Further details about planning, environmental assessments and the timetable for scaling output are expected as the company moves towards commercial production in 2029. For now, the government and Geothermal Engineering Limited say the facility represents both an economic boost for Cornwall and a strategic move to strengthen the UK's foothold in the battery materials market.
