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We are pleased to announce that Cornish Lithium has received its first investment from the UK Infrastructure Bank. This is a significant boost for the company and a positive development for Britain’s efforts to establish a domestic mining industry for Lithium, a crucial metal in the electric car transition.
Cornish Lithium stated in a recent statement that the funding package from the UK Infrastructure Bank will significantly accelerate their progress in achieving a domestic supply of battery-grade lithium. With this investment, the start-up will be able to develop mines in south-west England, contributing to Cornwall’s ambitions of becoming a leading European hub for lithium supply, a key component in electric car batteries.
The investment of $67 million comes from the UK Infrastructure Bank, the Energy & Minerals Group (a US private investor), and TechMet (an existing shareholder backed by the US government). Further funding of up to $210 million may be provided by this consortium in a second round of funding.
This investment by the UK Infrastructure Bank, which was established two years ago to attract private financing into climate projects, reflects the growing importance of securing critical mineral supplies like lithium among governments worldwide. The US, Canada, France, and other countries have intensified efforts to strengthen their critical mineral supply chains in order to challenge China’s dominance in this field.
Andrew Griffith, the UK’s economic secretary to the Treasury, stated that this investment aligns with the government’s critical minerals strategy and will enhance the UK’s domestic lithium supply. This will not only support the country’s transition to a net-zero economy but also boost local and regional economic growth.
The UK Infrastructure Bank, which took over the role of the European Investment Bank after Brexit, has made its first direct equity investment by aiding Cornish Lithium, following a warning from auditors that the company needed £10 million to continue its operations.
Jeremy Wrathall, CEO of Cornish Lithium, expressed in a recent interview with the Financial Times that the $67 million investment will secure the company’s future for the next two years, during which the final decision to build Trelavour, their first lithium mining project, will be made.
Lithium is a critical mineral that has the potential to cause a supply chain bottleneck if demand outpaces supply, particularly as electric vehicles become more prevalent. Moreover, the revival of Cornwall’s mining heritage and the economic growth it could bring to one of the UK’s poorest regions depend on the success of lithium mining.
Cornish Lithium, a privately held company, has revealed its plans for the Trelavour project, valued at $244 million, to be established on a former China clay mine. This project aims to produce approximately 8,000 tonnes of lithium hydroxide per year starting from late 2026. If successful, it could meet 10% of the UK’s lithium demand by 2030. The project is also estimated to contribute £800 million to the local economy and could support Tata Motors’ planned battery plant in Somerset.
Jeremy Wrathall highlighted the positive impact of a domestic source of lithium on the UK’s car manufacturing supply chain, as it would enhance competitiveness. He also mentioned that the UK Infrastructure Bank has not imposed any restrictions on lithium exports, including to China.
In addition, Cornish Lithium is planning to launch a share offering for up to £6.9 million, targeting retail investors.
This announcement from Cornish Lithium coincides with recent comments from Gary Nagle, CEO of Glencore, who stated that lithium supply could easily be increased to meet the rising demand. Glencore is not interested in acquiring lithium mines and has a strong focus on other critical minerals.
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