A new cutting-edge lithium extraction facility is set to open at Geothermal Engineering Limited‘s United Downs site in, as the UK government seeks to strengthen industrial resilience and secure critical supply chains supporting sectors including automotive.
GEL will invest around £43m (US$57m) in the new facility in the southwest of the UK, using brine from the existing geothermal wells. The investment will create nearly 50 direct jobs and support around 80 more across the supply chain, after receiving an offer in principle worth nearly £10m (US$13m) through the UK government’s Drive35 Automotive Transformation Fund.
The move comes as demand for lithium is expected to increase by 1,100% by 2035 and will support hundreds of jobs and shore up the UK’s supplies of lithium. This critical mineral is essential for powering electric vehicle batteries, which is why the government has now taken action to unlock nearly £230m (US$304m) of private investment into two lithium projects in Cornwall and Teesside in the northeast of the UK.
The investment looks to unlock the Southwest’s industrial potential as part of the Prime Minister’s mission to reindustrialize the country.
This builds on Tees Valley Lithium‘s £185m (US$244m) investment to establish one of Europe’s largest lithium refineries in Teesside.
The investments are made possible by the UK government’s Modern Industrial Strategy. This is in addition to £1bn (US$1.3bn) of investment announced from Bentley, McLaren and Nissan.
Business secretary Jonathan Reynolds said, “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, said, “Lithium is fundamental to the technologies underpinning the automotive sector’s transition to zero-emission vehicles. 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 and we are proud to be building that capability here in Cornwall, bringing jobs and new investment to the local area.”
With commercial production set to begin on GEL’s Cornwall project in 2029, the facility is expected to produce around 1,500 metric tons of technical-grade lithium carbonate from geothermal brine underground each year – enough to power more than 180,000 typical EV car batteries.
Julian Hetherington, automotive transformation and engagement director, APC and Zenzic, commented, “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.”
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