£24m investment in Cornish lithium mine
The money's coming from the UK Infrastructure Bank
Last updated 8th Aug 2023
£24m is being invested into a project to build a new lithium mine in Cornwall from the new UK Infrastructure Bank.
It's part of more than £53m raised by Cornish Lithium from three donors.
It's the first ever equity investment - where an investor provides money in return for shares in the business - for the Bank, which was announced by the Government in 2020.
Cornish Lithium hoping to eventually employ 300 people in the Duchy mining the element, which is a vital part of batteries for electric cars.
"Our investment in Cornish Lithium perfectly encapsulates a key part of our mission - to drive forward new and emerging markets that the UK will rely on to meet its net zero goals, and which will deliver an enduring and positive impact on local economies," said UK Infrastructure Bank chief executive John Flint.
"Globally, the supply of lithium is far outpaced by demand, and yet in the UK it remains a nascent market.
"Our investment has already crowded in private sector financing which will greatly accelerate domestic production of a mineral which is critical to the future of EV battery production and decarbonisation of the transport sector."
"A positive development for the UK's automotive industry"
Cornish Lithium founder and chief executive Jeremy Wrathall said the cash would be used to make one of its projects "construction ready" and design a demonstration of another project.
"These project milestones are expected to generate a significant value uplift for all of our shareholders and create substantial benefits for the local community," Mr Wrathall said.
"As well as creating job opportunities and fostering innovation, the investment signals confidence in our ambitions and will drive forward the modern-day renaissance of Cornwall's 4,000-year mining heritage.
"It is also a positive development for the UK's automotive industry and green industrial revolution.
"A domestic source of lithium will strengthen the UK's car manufacturing supply chain and improve its competitiveness whilst reducing the carbon footprint associated with the manufacture of batteries and electric vehicles."