Boosting Britain’s Lithium Industry: Cornish Lithium Secures First Investment
Introduction
In a significant step forward for both Cornish Lithium and Britain’s ambitions of establishing a national mining industry for lithium, the company announced its first investment from the UK Infrastructure Bank. This funding package is set to accelerate progress towards developing a domestic supply of lithium for batteries, which is vital to the transition to electric cars. The investment will support the start-up in developing mines in southwest England, paving the way for Cornwall to become a European hub for lithium supply.
Investment Details
The investment, totaling $67 million, includes contributions from the UK Infrastructure Bank, US private investor Energy & Minerals Group, and current US government-backed shareholder TechMet. This initial investment could potentially be followed by a second round of funding by the trio, amounting to up to $210 million. The UK Infrastructure Bank, established to attract private finance into climate projects, contributed £24 million.
Importance of Lithium Supply
The intervention by the UK Infrastructure Bank reflects the growing recognition among governments of the critical need to secure supplies of crucial minerals, such as lithium. Nations like the United States, Canada, and France have all increased their efforts to boost supply chains of such minerals, aiming to challenge China’s dominance in this sphere. Ensuring a domestic supply of lithium is not only crucial for the transition to net zero in the UK but also stimulates local and regional economic growth.
Implications for Cornwall
The investment in Cornish Lithium has the potential to revive Cornwall’s mining heritage and drive growth in one of the poorest areas in the UK. Cornish Lithium’s plans for the Trelavour project, to be located on a former china clay mine, could generate approximately 8,000 tonnes of lithium hydroxide annually, meeting 10% of the UK’s metal demand by 2030. The project is projected to contribute £800 million to the local economy. Furthermore, a domestic lithium source could support Tata Motors’ planned battery plant in Somerset, benefiting the UK’s car manufacturing supply chain and improving its competitiveness.
Expanding Lithium Supply
While Cornish Lithium is making strides in developing a domestic supply of lithium, other industry players, like Swiss commodity trading group Glencore, believe that lithium supply can easily be increased to meet demand. Gary Nagle, the CEO of Glencore, stated that lithium is abundant worldwide, and the barriers to entry in the market are not high. Glencore’s focus lies more on critical minerals other than lithium.
Unique Insights and Perspectives
As the demand for lithium continues to grow, countries around the world are recognizing the importance of securing a sustainable and reliable supply of this critical mineral. Here are some unique insights and perspectives on the topic:
1. The Environmental Impact: While lithium is essential for the electric car transition, it’s crucial to consider the environmental impact of its extraction and processing. Developing sustainable and eco-friendly mining practices should be a priority for the industry.
2. Recycling Lithium Batteries: As the number of electric vehicles and lithium batteries increases, recycling becomes a crucial aspect of the lithium supply chain. Developing efficient recycling technologies and establishing recycling facilities could help reduce the reliance on primary lithium sources.
3. Technological Advances: Innovation in battery technology plays a significant role in reducing the demand for lithium. Advancements in solid-state batteries or alternative battery materials may change the landscape of the lithium market in the future.
4. Lithium-Ion vs. Solid-State Batteries: While lithium-ion batteries dominate the market currently, solid-state batteries have the potential to revolutionize energy storage. Exploring the benefits and challenges of solid-state battery technology can provide a broader understanding of the future of lithium in the energy sector.
Conclusion
Cornish Lithium’s first investment from the UK Infrastructure Bank is a major boost for Britain’s ambitions of establishing a domestic supply of lithium. The funding is expected to accelerate the development of lithium mines in southwest England and contribute significantly to Cornwall’s plans of becoming a European hub for lithium supply. With the transition to electric vehicles gaining momentum globally, securing a sustainable supply of lithium becomes increasingly vital. However, it is essential to ensure sustainable and environmentally friendly mining practices and explore alternative battery technologies to meet future demand.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Get free Lithium updates
We will send you a myFT Daily Digest email rounding last Lithium news every morning.
Cornish Lithium has secured its first investment from the UK Infrastructure Bank to boost the company and Britain’s hopes of establishing a national mining industry for the metal, which is vital to the electric car transition.
“The funding package is expected to significantly accelerate progress towards establishing a domestic supply of lithium for batteries,” Cornish Lithium said in a statement Tuesday.
It will help the start-up develop mines in south-west England and is a step forward in Cornwall’s plans to become a European hub for lithium supply. Lithium is used in the batteries that power electric cars.
The $67 million investment – from a state lender UKIB extensionUS private investor Energy & Minerals Group and current US government-backed shareholder TechMet could be followed by a second round of funding by the trio of up to $210 million.
The UKIB intervention, which contributed £24m and was set up two years ago to attract private finance into climate projects, follows the growing importance among governments of securing supplies of critical minerals such as lithium.
The United States, Canada, France and other nations have stepped up plans to boost supply chains of critical minerals in a bid to challenge China’s dominance in the sphere.
“This investment supports the plans set out in the Government’s Critical Minerals Strategy by improving the UK’s domestic supply of lithium, which will help the UK’s transition to net zero while stimulating local and regional economic growth,” said Andrew Griffith , UK Economic Secretary to the Treasury.
The UKIB, set up to replace the European Investment Bank after the UK left the EU, made its first direct equity investment following an auditor warning Cornish Lithium in June that it needed 10 million pounds to keep working.
Jeremy Wrathall, chief executive of Cornish Lithium, said in an interview with the Financial Times that the $67 million will secure the company’s future for two years, when the final investment decision is made to build what is expected to be its first Trelavour lithium mining project.
Lithium, which has the potential to cause a supply chain bottleneck in the switch to electric vehicles if demand outstrips supply, could also be key to reviving Cornwall’s mining heritage and driving growth in one of the areas poorest in the UK.
Private company Cornish Lithium said its plans for the $244 million Trelavour project on a former china clay mine could generate about 8,000 tonnes of lithium hydroxide annually from the end of 2026, enough to meet 10 % of UK metal demand by 2030.
That project alone could contribute £800m to the local economy, the company said. A domestic source of lithium could also eventually support Indian carmaker Tata Motor’s planned battery plant in Somerset.
Wrathall said “an internal source of lithium will strengthen the UK’s car manufacturing supply chain and improve its competitiveness.”
He added that the UKIB has not placed any clause on lithium exports. For example, it hadn’t ruled out exports to China.
Cornish Lithium also plans to launch a share offering of up to £6.9 million for retail investors.
Cornish Lithium’s announcement coincided with Gary Nagle, chief executive of Swiss commodity trading group Glencore, saying that lithium supply could easily be increased to meet demand.
“Lithium is abundant worldwide and the barriers to entry are not very high. We are not interested in buying lithium mines,” she said in a call to the media. “We like all critical minerals other than lithium.”
—————————————————-