Grant funds to further appraisal drilling at Cross Lanes site
The Government has awarded a £7.2m DRIVE35 grant to Cornish Lithium to help fund a £14.5m drilling and testing programme at its Cross Lanes Geothermal Lithium Project, sited between Truro and Redruth. The support, announced on 12 August 2026, will be matched pound‑for‑pound by the company and is aimed at assessing whether commercial extraction of lithium from geothermal waters is technically and economically viable.
"The Government has given Cornish Lithium a multi-million-pounds boost"
The Cross Lanes development forms part of a cluster of Cornish projects exploring options for domestic supply of lithium, a metal that is critical for batteries used in electric vehicles, consumer electronics and large‑scale energy storage. Successful exploration drilling and earlier testing have already established the presence of lithium‑enriched geothermal waters beneath the site.
What the funding covers and why it matters locally
- Grant value: £7.2m through DRIVE35.
- Total programme cost: £14.5m for drilling and testing.
- Company match: Cornish Lithium will provide matching funds to the grant.
Locally, the award is significant for several reasons. It accelerates activity at a site within commuting distance of Truro, where Cornish Lithium already employs around 100 staff across multiple sites in the county. For residents and businesses in and around Truro, the project could mean further job opportunities in engineering, drilling, environmental monitoring and associated services if the company progresses to commercial production.
Policy context and regional ambitions
The DRIVE35 funding aligns with national aims set out in the Government's Critical Minerals Strategy, which pinpoints lithium as essential to the zero‑emission transition and sets a domestic production target of 50,000 tonnes per year by 2035. Locally, Cornwall has also seen other public‑backed initiatives aimed at unlocking high‑growth industries: earlier in the year the Government announced a £30m Kernow Industrial Growth Fund, delivered by Cornwall Council, to attract private investment into sectors such as critical minerals, renewable energy and space and marine innovation.
| Item | Value |
|---|---|
| DRIVE35 grant | £7.2m |
| Total programme | £14.5m |
| Cornish Lithium staff in Cornwall | ~100 |
| Government production target (by 2035) | 50,000 tonnes/year |
Company statements and government material make clear this is an appraisal phase rather than an immediate move to full‑scale extraction. The funding will pay for further appraisal drilling and technical testing to determine whether the geothermal waters circulating through local rock formations can yield lithium at commercial concentrations and rates.
Local perspective and next steps
People in Truro and nearby communities are likely to watch progress at Cross Lanes with interest. The project sits within a county that has seen both enthusiasm for green industrial jobs and careful scrutiny from residents and campaign groups concerned about environmental impacts. Planning approvals obtained in 2025 already allow for further phases of testing and evaluation at Cross Lanes; this latest injection of public funding will underwrite the next stage of fieldwork.
For now, Cornish Lithium's plans remain at the assessment and appraisal stage. If the tests confirm technical and economic viability, the company would need to seek further permissions and investment to move towards commercial production — a process that would unfold over several years.
As the work advances, the implications for local supply chains, employment and the county's place in the UK’s low‑carbon industrial landscape will become clearer. For a city like Truro, with its mix of small businesses, service industries and links to Cornwall’s wider energy and manufacturing ambitions, the Cross Lanes programme represents a potentially significant development worth monitoring.
