The United Kingdom has begun operations at its first commercial-scale lithium production facility, marking a significant step toward securing domestic supplies of critical minerals essential for electric vehicle batteries and energy storage.
The plant, developed by Geothermal Engineering Ltd (GEL) in Redruth, Cornwall, will initially produce 100 tonnes of lithium annually, sufficient to supply approximately 2,000 electric vehicles. The company plans to expand production to 1,500 tonnes per year within the next few years and ultimately exceed 18,000 tonnes annually over the coming decade through an investment programme estimated at £640 million.
Lithium extraction at the site relies on geothermal technology, with mineral-rich underground fluids used to recover the metal. GEL has also commissioned the UK’s first geothermal power plant to supply energy to the lithium operation, with surplus electricity to be sold to Octopus Energy.
The project forms part of a broader push among Western countries to establish domestic critical mineral supply chains amid growing geopolitical concerns. China currently dominates lithium processing, accounting for around 60 percent of global production in 2025 and maintaining strong control over downstream battery supply chains.
The UK government has set a target of producing 50,000 tonnes of lithium domestically by 2035, although market volatility following a sharp decline in lithium prices has delayed or reshaped several Western projects.
GEL founder Ryan Law said geothermal integration enables the company to produce lithium competitively, adding that the operation could rival imports from China on cost.
Other UK-based developers are progressing parallel initiatives. Cornish Lithium continues testing battery-grade lithium hydroxide samples from its demonstration plant and aims to commission a commercial facility by 2029, while Green Lithium has postponed its Teesside refinery start date to around 2029 under a phased development strategy.
Industry analysts caution that European lithium projects must still prove cost competitiveness against established Asian supply chains. While lithium represents a relatively small share of total EV production costs, experts warn that building a fully Western-based battery supply chain could introduce higher costs at multiple stages.
Additional challenges remain, including limited European cathode active material manufacturing capacity, which continues to link regional producers to Asian processing networks.
