Geothermal Engineering Secures GBP 9.8M Lithium Grant

Geothermal Engineering lithium grant funding of up to GBP 9.8 million has been announced by the Advanced Propulsion Centre (APC) for a project in Redruth, Cornwall. The government capital grant will support the production of technical grade lithium carbonate, with an initial planned capacity of 1,500 tonnes per annum beginning in 2029. The funding is being provided through the Automotive Transformation Fund, which forms part of the United Kingdom Government's DRIVE35 program. The initiative is delivered by the Department for Business, Innovation, Science and Trade (BIST), working in partnership with APC and Innovate UK.

GBP 9.8 Million Grant Supports Lithium Production

The funding will support Geothermal Engineering Ltd as it develops technical grade lithium carbonate production at its Redruth facility. The project is expected to begin producing an initial 1,500 tonnes per annum from 2029, establishing a domestic source of lithium material within the United Kingdom. The government capital grant is intended to help advance the project through the Automotive Transformation Fund under the DRIVE35 program. The announcement links the development to broader efforts supporting automotive-related supply chains and industrial capabilities.

Direct Lithium Extraction Technology Used at Redruth

The Redruth project will use Direct Lithium Extraction (DLE) technology to recover lithium from geothermal resources. According to the original announcement, lithium concentrations at the site are among the highest reported in European geothermal resources, a characteristic that can help reduce the processing requirements associated with lithium production. The combination of geothermal resources and DLE technology provides the technical foundation for producing lithium carbonate at the facility. The planned output represents the project's initial production stage, with 1,500 tonnes per annum targeted from 2029.

Project Expected to Create 132 Jobs

The development is also expected to generate local employment in Cornwall. The project is projected to create 49 direct local jobs while supporting a further 83 indirect jobs, resulting in 132 direct and indirect positions associated with the development. These employment figures form part of the project's stated local economic contribution alongside its planned lithium carbonate production. The facility in Redruth therefore combines industrial production activity with direct and indirect employment support as the project progresses toward its planned 2029 production start.

Government Program Connects Project With Automotive Transformation

The grant is being provided through the Automotive Transformation Fund, which is identified as part of the United Kingdom Government's DRIVE35 program. Delivery involves the Department for Business, Innovation, Science and Trade (BIST), APC, and Innovate UK. The funding structure places the Redruth lithium project within a broader government-supported industrial framework connected to automotive transformation. For United Kingdom manufacturing and supply-chain development, the project combines domestic lithium resource extraction and processing with a government funding mechanism designed to support strategic industrial capabilities.

Industry Impact & Outlook

The project could strengthen the regional and domestic supply of technical grade lithium carbonate while adding industrial activity and employment in Cornwall. Its planned use of Direct Lithium Extraction and the reported lithium concentration of the geothermal resource are particularly relevant because they may influence the processing requirements of the project. The 2029 production target also establishes a clear development milestone for Geothermal Engineering Ltd. Further progress will depend on project development and delivery of the planned production facility, while the government-backed funding provides a defined framework for advancing the announced capacity.

Frequently Asked Questions

How much government funding will Geothermal Engineering receive?
The company has been offered government capital grant funding of up to GBP 9.8 million through the Automotive Transformation Fund. The funding will support the planned production of technical grade lithium carbonate at Geothermal Engineering's facility in Redruth, Cornwall. The project is targeting initial production of 1,500 tonnes per annum from 2029 and is expected to create 49 direct local jobs while supporting 83 indirect jobs. The site will use Direct Lithium Extraction technology to recover lithium from geothermal resources and support the project's planned production process.