Cornwall lithium mine to create nearly 50 jobs in £43 million investment
Government funding will help unlock private investment in Cornwall's mining industry
Last updated 29th Sep 2026
A new lithium extraction facility is set to open in Cornwall after receiving government backing worth nearly £10 million.
Geothermal Engineering Limited (GEL) will invest around £43 million in the project, which is expected to create nearly 50 direct jobs and support around 80 more through its supply chain.
The funding comes through the Department for Business, Innovation, Science and Trade's DRIVE35 Automotive Transformation Fund, and was announced on 27th September 2026.
The Offer in Principle remains subject to due diligence and final approval.
H2 Why lithium matters for the UK
Lithium is a critical mineral used in the batteries that power electric vehicles.
Demand for the material is expected to rise by 1,100% by 2035, according to the government.
Officials say the investment is intended to strengthen supply chains for the automotive, clean energy and advanced manufacturing sectors, and to reduce reliance on imported lithium.
The Cornwall project is one of two lithium schemes to receive funding, alongside a £185 million investment by Tees Valley Lithium to build a refinery in Teesside, which received an £18.3 million Offer in Principle through the same fund.
Together, the two projects are expected to unlock around £230 million of private investment.
H2 What the mine will produce
Commercial production at GEL's Cornwall site is due to begin in 2029.
The facility is expected to produce around 1,500 tonnes of technical-grade lithium carbonate each year, extracted from geothermal brine underground.
That amount would be enough to supply batteries for more than 180,000 typical electric vehicles, according to GEL.
The company says the site has the potential to scale up production to tens of thousands of tonnes in the future.
H2 What has been said
Business Secretary Jonathan Reynolds said:
"Cornwall has a proud mining heritage, and companies like Geothermal Engineering are helping to write its next chapter in unlocking the South West's industrial potential."
"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."
"Hot on the heels of over £1 billion of automotive investment secured already this month, this latest win is a big step towards building our industrial resilience."
Dr Ryan Law, CEO 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."
"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."
Julian Hetherington, Automotive Transformation & Engagement Director at the Advanced Propulsion Centre UK 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."
H2 Wider investment in the automotive sector
The government said the announcement follows more than £1 billion of automotive investment secured this month from Bentley, McLaren and Nissan.
DRIVE35 is described as the government's flagship automotive programme, providing £4 billion of capital and research and development grant funding up to 2035.
Previous support through the fund has gone to research and development projects led by Cornish Lithium, Watercycle Technologies, Weardale Lithium and Northern Lithium, aimed at developing extraction technologies and scaling up domestic lithium production.