UK-listed Cornish Lithium has secured grant funding worth £7.2mn to advance its Cross Lanes Geothermal Lithium Project.
The cash — obtained via the UK government’s DRIVE35 programme — will part-fund a £14.5mn programme of drilling and testing work to assess the technical and economic viability of commercial production.
Jamie Airnes, CEO of Cornish Lithium, said the award is recognition that Cornwall is at the heart of the UK's clean energy ambitions.
“Our projects have the potential to meet nearly 40% of the government's domestic lithium production target – delivering a scalable, low-carbon and secure supply of lithium for the UK, right here in Cornwall.”
Lithium is a key component of lithium-ion batteries, which power consumer electronics, electric vehicles and large-scale energy storage systems, as well as a broad range of advanced manufacturing applications.
The company says its projects align with UK government priorities, which identify lithium as essential to the energy transition and set a domestic production target of 50,000 tonnes per year by 2035.
Successful exploration drilling and testing in 2023 by the company established the presence of lithium-enriched geothermal waters circulating naturally through underlying rock formations at the Cross Lanes site, near Chacewater.
In 2025, it secured planning consent for the development of the site including further phases of testing and evaluation.
The UK government’s grant — to be matched equally by Cornish Lithium — will enable the company to drill two 2,000-metre production wells and operate a Direct Lithium Extraction (DLE) demonstration plant at Cross Lanes as well as drill an appraisal well at the adjacent Baldhu site to confirm the existence of additional lithium resources.
“This DRIVE35 funding will allow Cornish Lithium to carry out extended testing over a defined timescale to validate sustainable production conditions and assess water reinjection rates,” said Airnes.
Once testing is complete, a modular demonstration plant will be installed to evaluate the preferred DLE technology at scale and explore the potential to harness geothermal heat for local homes and businesses.
“Data gathered from the wells will inform the project’s final investment decision and support the company’s wider ambition to develop a network of modular geothermal lithium production facilities across Cornwall.”
The UK’s DRIVE35 programme is delivered by the Department for Business, Innovation, Science and Trade (BIST) in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK.
MP for Truro and Falmouth, Jayne Kirkham, called it an exciting time for Cornwall and its future role in supporting the nation’s energy transition.
“Our rich granite bedrock places our region at the heart of a cleaner, more resilient future and in creating hundreds of jobs, supporting local communities and strengthening our economy, this project presents a significant opportunity for Cornwall and the UK.”