Cornish Lithium receives grant funding to advance Cross Lanes geothermal lithium project

Cornish Lithium has secured a £7.2 million grant from the UK Government’s DRIVE35 programme which will partly fund drilling and testing at the company’s Cross Lanes Geothermal Lithium Project, located near Chacewater, as well as appraisal drilling in the Baldhu area.

The presence of lithium-enriched geothermal waters at the Cross Lanes site had already been established through successful exploration drilling and testing back in 2023. Based on the company’s project updates, the exploration well was drilled to 2000 meters and confirmed thermal waters with a temperature of 70 ºC and a lithium concentration of 100 ppm.

With this grant, Cornish Lithium will proceed to drilling two 2000-meter production wells and operations of a Direct Lithium Extraction (DLE) demonstration plant. The planning permission for the project was granted in 2025.

Extended testing of the wells and evaluation of DLE technologies will inform the project’s Final Investment Decision and support the company’s wider ambition of developing a network of modular geothermal lithium production facilities across Cornwall. Moreover, appraisal drilling at the adjacent Baldhu site will serve to confirm the existence of additional lithium resources.

“This grant is further recognition that Cornwall is at the heart of the UK’s clean energy ambitions,” said Jamie Airnes, CEO of Cornish Lithium. “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. That means £3.8bn contributed to the Cornish economy over the next 25 years and more than 700 well-paid, long-term jobs for the next generation, offering career opportunities that can keep home-grown talent in Cornwall.

The UK Government’s DRIVE35 programme is part of the UK Government’s Advanced Manufacturing Sector Plan which outlines its commitment to a zero-emission future. An unprecedented £4 billion in grant funding has been made available through 2035 for automotive research and development, scale-up, and transformation. Other geothermal lithium projects in the UK have received DRIVE35 grants, including Weardale Lithium and Geothermal Engineering Ltd.

Source: Cornish Lithium