Cornish Lithium has secured a £7.2 million grant from the UK Government’s DRIVE35 programme to support drilling, testing and demonstration work at its Cross Lanes Geothermal Lithium Project near Chacewater, Cornwall, as well as appraisal drilling in the nearby Baldhu area.
The company previously confirmed the presence of lithium-enriched geothermal waters at Cross Lanes through exploration drilling and testing in 2023. According to project updates, the exploration well was drilled to a depth of 2,000 metres and encountered thermal waters with a temperature of 70 C and a lithium concentration of 100 parts per million.
With the new grant funding, Cornish Lithium plans to drill two 2,000-metre production wells and operate a Direct Lithium Extraction demonstration plant at the site. Planning permission for the project was granted in 2025.
The company said extended well testing and evaluation of Direct Lithium Extraction technologies will help inform the project’s final investment decision. The work will also support Cornish Lithium’s broader plan to develop a network of modular geothermal lithium production facilities across Cornwall. Appraisal drilling at Baldhu is intended to confirm the presence 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, chief executive 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.”
The UK Government’s DRIVE35 programme is part of its Advanced Manufacturing Sector Plan, which sets out a commitment to a zero-emission future. The programme will make £4 billion in grant funding available through 2035 for automotive research and development, scale-up and transformation. Other UK geothermal lithium projects, including those led by Weardale Lithium and Geothermal Engineering Ltd., have also received DRIVE35 grants.
