Cornish Lithium equity investment

Globally, the supply of lithium is far outpaced by demand, and yet in the UK it remains a nascent market. In August 2023, UKIB completed its first direct equity transaction, investing £24m in Cornish Lithium Plc to support a first-of-a-kind lithium extraction and exploration project in Cornwall.

The Bank’s involvement facilitated matched funding by The Energy & Minerals Group (EMG), a US-based private equity fund focused on the energy and minerals sectors. Cornish Lithium’s existing institutional shareholder, TechMet, the energy-metals investment company, invested a further US$7 million (c. £5.6 million). 

The financing will support the construction of a demonstration plant to show the feasibility of the project, and the creation of a domestic supply of lithium, which is crucial to the scaling up of battery production for electric vehicles and the development of battery energy storage. 

The project will enable Cornwall’s development as an industrial cluster for lithium extraction, creating skilled employment, and strengthening the move to net zero in line with the county's local industrial strategy. Once in commercial production, Cornish Lithium aims to build its 70-strong Cornwall-based workforce to over 300. Through its hard rock mine development alone, it is estimated that Cornish Lithium could generate £800 million of economic activity for the local economy over the planned 20-year mine life. This figure is expected to increase further through the Company's geothermal waters project portfolio.

UKIB’s 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.

Adam Howard, Banking & Investments Director at UKIB said:

This deal encapsulates much of the UKIB's mission - developing UK-based net-zero markets and technologies, while delivering an enduring impact on local economies. Cornish Lithium are a catalyst for the rejuvenation of sustainable mining in Cornwall, and a step towards a domestic lithium supply chain in the UK. We were pleased to work alongside Energy and Minerals Group and Techmet on this transaction who brought significant sub-surface expertise, and to have worked with the excellent team at Cornish Lithium delivering this first-of-a-kind project for the UK.