Cornish Lithium is to receive £53m in funding from the UK Infrastructure Bank, the Energy & Minerals Group and TechMet to support the development of the UK’s critical minerals supply chain.
In its first direct equity investment, the UK Infrastructure Bank will invest approximately £24m into the development of the UK’s critical minerals supply chain with EMG, a US-based private equity fund focused on the energy and minerals sectors, also investing around £24m.
Cornish Lithium’s largest existing institutional shareholder, TechMet, the critical minerals investment company, whose major backers include the US Government’s Development Finance Corporation (DFC), is investing a further £5.6m.
The funding package is expected to significantly accelerate progress toward the creation of a domestic supply of battery grade lithium compounds, which is crucial to support the scaling up of domestic battery production for electric vehicles and battery energy storage solutions for renewable energy sources.
The initial investment is part of a larger funding package of up to an additional £168m potential second-stage financing, which is expected to provide the equity foundation necessary for the pioneering mineral exploration and development company to achieve commercial production.
This investment aligns closely with the Bank’s core mandate to support the UK’s transition to net zero and boost regional and local economic growth.
The funding aims to enable the English county’s development as an industrial cluster for lithium extraction and will strengthen the move to net zero in line with Cornwall’s local industrial strategy.
Once in commercial production, Cornish Lithium aims to build its 70-strong Cornwall-based workforce to over 300.
Through its Trelavour hard rock mine development alone, it is estimated that Cornish Lithium could generate £800m of economic activity for the local economy over the expected 20-year mine life.
This figure is expected to increase further through development of the company’s geothermal waters project portfolio.
John Flint, CEO of UK Infrastructure Bank, said: “Our investment in Cornish Lithium perfectly encapsulates a key part of our mission – to drive forward new and emerging markets that the UK will rely on to meet its net zero goals, and which will deliver an enduring and positive impact on local economies.”