Cornish Lithium secures £53.6m investment

August 9, 2023

UK-based Cornish Lithium has secured a $67 million (£53.6 million) initial investment from a group of leading institutional investors – led by the UK Infrastructure Bank alongside The Energy & Minerals Group (EMG) and TechMet – with a view to accelerating the creation of a domestic supply of battery grade lithium compounds for battery storage and electric vehicles.

In its first direct equity investment, the UK Infrastructure Bank will invest approximately £24 million ($30 million) 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 £24 million ($30 million). 

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 $7 million (£5.6 million), bringing its total investment into Cornish Lithium to $30m.

“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,” a statement said.

The initial investment is part of a larger funding package of up to an additional $210 million (£168 million) potential second-stage financing, which is expected to provide the equity foundation necessary for the mineral exploration and development company to achieve commercial production, the statement added.

Jeremy Wrathall, founder and CEO of Cornish Lithium, said: “Cornish Lithium has achieved its objective of defining world-class opportunities for lithium extraction in Cornwall from both lithium-enriched geothermal waters and from hard rock. It was therefore essential to secure funding from institutional investors with the financial muscle to bring our projects into commercial production. We are delighted to have secured investment from the UK Infrastructure Bank alongside EMG, as well as our much-valued partner TechMet.

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.”