A NEW lithium mine is set to open in Redruth to unlock Britain’s industrial potential.

Geothermal Engineering Limited (GEL) will invest around £43 million in a new cutting-edge lithium extraction facility at United Downs.

The investment will create nearly 50 direct jobs and support around 80 more across the supply chain, after receiving an offer in principle worth nearly £10-million through the government’s DRIVE35 Automotive Transformation Fund.

Commercial production set to begin in 2029 and the facility is expected to produce around 1,500 tonnes of technical-grade lithium carbonate from geothermal brine underground each year – enough to power more than 180,000 typical EV car batteries.

The mine has the potential to scale to producing tens of thousands of tonnes in the future. The lithium produced will give a “huge boost” to the UK’s electric vehicle battery manufacturing and move Britain forward in the transition towards net zero.

Demand for lithium is expected to increase by 1,100 per cent by 2035 and will support hundreds of jobs and shore up Britain’s supplies of lithium.

Business Secretary Jonathan Reynolds said: "Cornwall has a proud mining heritage, and companies like Geothermal Engineering are helping to write its next chapter in unlocking the South West’s industrial potential.

“Britain isn’t just a country for innovation and ideas. It’s a country that produces, and we’re building a modern economy rooted in the industries where we’re already strong and that local communities are proud of.

“Hot on the heels of over £1-billion of automotive investment secured already this month, this latest win is a big step towards building our industrial resilience.

Dr Ryan Law, CEO of GEL, said: “Lithium is fundamental to the technologies underpinning the automotive sector’s transition to zero-emission vehicles. At GEL, we are proud to be at the forefront of establishing a new UK lithium industry, demonstrating how Cornwall’s geothermal brine can provide a reliable and sustainable source of this critical mineral.

"We believe the UK has an important opportunity to develop the resources, technology and expertise needed to establish a domestic lithium supply, giving the country greater control over an increasingly important raw material and we are proud to be building that capability here in Cornwall, bringing jobs and new investment to the local area."

Julian Hetherington, automotive transformation and engagement director, APC and Zenzic, said: "The project aligns with the UK’s Critical Minerals Strategy 2035 by expanding domestic production of critical minerals, reducing reliance on imports.

“Extracting lithium in the UK is vital for several reasons: it diminishes dependence on supply chains dominated by China and supports the production of electric vehicle batteries, essential for the UK's transition to renewable energy use in zero emission vehicles.

"In addition, the lithium extraction is expected to spark significant economic growth, especially in Cornwall where a vibrant materials cluster is developing at pace, while enhancing resilience by diversifying the supply chain and mitigating risks tied to concentrated global lithium production and processing.”