2 The new UK Infrastructure Bank has injected approximately £24 million into a Cornwall-based project aimed at establishing a new lithium mine, providing crucial funding for the initiative.
Cornish Lithium revealed that it had raised $67 million (£53.6 million) from three investors.
This funding includes the inaugural equity investment – where an investor contributes funds in exchange for shares in the company – from the UK Infrastructure Bank, introduced by the Government in 2020.
A US private equity investor, Energy & Minerals Group (EMG), invested roughly $30 million (£24 million), while TechMet, an existing shareholder, is contributing an additional $7 million (£5.6 million).
“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 John Flint, CEO of the UK Infrastructure Bank.
“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.”
Cornish Lithium founder and CEO Jeremy Wrathall stated that the funds would be utilized to prepare one of the projects for construction and to create a demonstration for another project.
He envisions these initiatives could generate approximately 300 job opportunities for the region. Currently, Cornish Lithium employs 70 individuals.
300 Expected Jobs to be Created “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 noted.
“In addition to 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.” Photo by Dnn87, Wikimedia commons.