Cornish Lithium has secured grant funding of £7.2m through the UK Government’s DRIVE35 programme to part-fund a £14.5m programme of drilling and testing. This will advance the assessment of the technical and economic viability of commercial production at our Cross Lanes Geothermal Lithium Project, and enable further appraisal drilling at Baldhu, near Truro.
The UK Government’s DRIVE35 programme, delivered by the Department for Business, Innovation, Science and Trade (BIST) in partnership with the Advanced Propulsion Centre UK (APC) and Innovate UK, is part of the UK Government’s Advanced Manufacturing Sector Plan, which outlines its commitment to a zero-emission future, with an unprecedented £4bn of grant funding available to 2035 for automotive research and development (R&D), scale-up and transformation. All UK Government grant funding is subject to His Majesty’s Government’s approval.
Lithium is a key component of lithium-ion batteries, which power consumer electronics, electric vehicles and large-scale energy storage systems, as well as a broad range of advanced manufacturing applications. Cornish Lithium’s projects are directly aligned with the UK Government’s Industrial Strategy, Growth Sector strategies and the recently published Critical Minerals Strategy, which identifies lithium as essential to the energy transition and sets a domestic lithium production target of 50,000 tonnes per year by 2035.
Successful exploration drilling and testing in 2023 established the presence of lithium-enriched geothermal waters circulating naturally through underlying rock formations at the Cross Lanes Geothermal Lithium Project site, near Chacewater. In 2025, the company secured planning consent for the development of this site including further phases of testing and evaluation.
The UK Government’s DRIVE35 grant funding, matched pound-for-pound by Cornish Lithium, will enable the company to drill two 2,000-metre production wells and operate a Direct Lithium Extraction (DLE) demonstration plant at Cross Lanes as well as drill an appraisal well at the adjacent Baldhu site 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.
“This DRIVE35 funding will allow Cornish Lithium to carry out extended testing over a defined timescale to validate sustainable production conditions and assess water reinjection rates. Once testing is complete, a modular demonstration plant will be installed to evaluate the preferred DLE technology at scale and explore the potential to harness geothermal heat for local homes and businesses.
“Data gathered from the wells will inform the project’s Final Investment Decision and support the company’s wider ambition to develop a network of modular geothermal lithium production facilities across Cornwall.”
Ian Constance, Chief Executive at the Advanced Propulsion Centre UK, added: “The projects announced demonstrate the depth of innovation and engineering excellence that exists across the UK automotive sector. Through DRIVE35, we are supporting businesses to move promising technologies to commercial deployment and manufacturing at scale.
“This investment is about far more than individual projects. It is about strengthening the UK’s capability to design, develop and build the technologies that will define the vehicles of the future. By bringing together industry, government and academia, DRIVE35 is helping to create the conditions for long-term growth, increasing investor confidence and reinforcing the UK’s position as one of the world’s leading destinations for automotive innovation.”
“This is very exciting news for Cornwall because critical minerals are essential to the UK’s economy, national security and clean energy transition,” said Jayne Kirkham, MP for Truro and Falmouth. “Our rich granite bedrock places our region at the heart of a cleaner, more resilient future and in creating hundreds of jobs, supporting local communities and strengthening our economy, this project presents a significant opportunity for Cornwall and the UK.”
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