Cornish Lithium has announced that it will receive £7.2 million in government funding as part of a £14.5 million drilling and testing programme aimed at advancing the Cross Lanes Geothermal Lithium project in Cornwall. This funding, part of the DRIVE 35 initiative, is intended to enhance the technical and economic viability of commercial lithium production from geothermal sources. The project aligns with the UK Government’s Industrial Strategy and Growth Sector strategies, particularly in light of the increasing importance of lithium in the energy transition.
The funding will facilitate the drilling of two production wells, each reaching depths of 2,000 metres, and the operation of a Direct Lithium Extraction demonstration plant at the Cross Lanes site. Additionally, an appraisal well will be drilled at the nearby Baldhu site to confirm the presence of further lithium resources. Exploration drilling conducted in 2023 has already established the existence of lithium-enriched geothermal waters circulating through the underlying rock formations at the project site, near Chacewater.
Cornish Lithium received planning consent for the development of the site in 2025, which includes further phases of testing and evaluation. The company aims to contribute to the UK’s domestic lithium production target of 50,000 tonnes per year by 2035, recognising lithium’s critical role in the transition to sustainable energy. The full planning application and associated documents can be accessed on the Cornwall Council planning register under PA24/06661.
This initiative not only supports local economic growth but also positions the UK as a key player in the global lithium market, which is essential for the production of batteries used in electric vehicles and renewable energy storage solutions. As the demand for lithium continues to rise, projects like Cornish Lithium’s are crucial for ensuring a sustainable supply chain within the UK.
