Cornish Lithium: ATF supports homegrown lithium
The race to decarbonise transport and energy systems hinges on one critical component: batteries. At the heart of these batteries lies lithium, a mineral that, until recently, the UK had no domestic supply of. That’s changing, thanks to Cornish Lithium, a pioneering company that has just achieved a historic milestone: becoming the first to produce battery-grade lithium hydroxide mined and refined in the UK.
Why lithium matters
Lithium is essential for electric vehicle (EV) batteries and energy storage systems, making it a cornerstone of the global energy transition. Yet, the UK and Europe have long relied on imports, leaving supply chains vulnerable to geopolitical risks. Recognising this, the UK government’s Critical Minerals Strategy set a target of 50,000 tonnes of lithium per year by 2035.
Cornish Lithium is taking steps forwards. From 2029, the company expects to produce 20,000 tonnes annually, a significant contribution towards national goals.
Innovation at the c(ore)
Cornish Lithium’s demonstration plant in Cornwall is more than a mining operation, it’s a showcase of sustainable innovation.
Funding secured through the government’s Automotive Transformation Fund’s (ATF) Scale up Readiness Validation competition (SuRV) supported the construction of the hydrometallurgical section of the plant. The ATF is facilitated by the Advanced Propulsion Centre UK (APC) and Innovate UK, which now comes under the DRIVE35 programme from the Department for Business and Trade.
The facility uses a unique process to extract lithium from granite ore beneath former china clay pits. This method is:
- Energy-efficient: low-carbon processing technology developed over many years of intensive research and development
- High-quality: Delivering battery-grade lithium hydroxide for EV and energy storage markets.
This approach positions Cornish Lithium as a leader in sustainable mineral production.
A boost for UK industry and communities
The government grant funding didn’t just enable the plant’s construction, it unlocked investor confidence, attracting cornerstone investors and paving the way for £400 million in planned investment. The economic ripple effect is substantial:
- 300 direct jobs and nearly 1,000 indirect jobs.
- 20 years of investment in Cornwall.
- Strengthened UK supply chains for EV and battery manufacturing.
A historic first
In late 2025, Cornish Lithium announced a landmark achievement: producing the first-ever battery-grade lithium hydroxide from UK-mined ore. This breakthrough validates the company’s innovative refining process and signals a new era for British industry—one where critical minerals are sourced responsibly at home.
Looking Ahead
As EV adoption accelerates and renewable energy storage becomes mainstream, demand for lithium will soar. Cornish Lithium’s work ensures the UK isn’t left behind. By combining cutting-edge technology, government support, and private investment, the company is building a resilient, sustainable supply chain that benefits both the economy and the environment.
Learn more about the DRIVE35 Automotive Transformation Fund, and Scale-up opportunities via the APC’s funding pages.