Geothermal Engineering Limited (GEL), the leading geothermal power company in the UK, is poised to supply the first commercially significant quantities of carbon-neutral lithium in the United Kingdom. Recent tests have revealed that the geothermal fluid extracted from deep wells at the United Downs site in Cornwall contains approximately 340 parts per million (ppm) of lithium, marking one of the highest concentrations of lithium found in any commercial geothermal lithium project in Europe.
GEL’s core business involves generating baseload geothermal electricity and heat, producing a naturally hot geothermal brine that allows for sustainable lithium extraction onshore in the UK as a by-product. By employing zero-carbon geothermal power for the extraction process, GEL aims to avoid the water-intensive evaporation ponds and the carbon-intensive quarrying and extraction processes associated with large open-cast mines, which are currently the predominant methods for lithium extraction.
The company’s goal is to produce approximately 100 tonnes per annum (tpa) of Lithium Carbonate Equivalent (LCE) by late 2024, with plans to scale up to a minimum of 1,000 tpa by 2026. GEL has obtained planning permission for two additional geothermal projects in Cornwall and aims to rapidly increase production to over 12,000 tpa in the UK by 2030. This level of production would be sufficient to manufacture around 250,000 electric vehicle batteries for an average-sized car. To put this in perspective, it would cover 94% of the LCE required for the 267,000 new Battery Electric Vehicles (BEVs) registered in the UK in 2022.
The current lithium production in Europe falls short of meeting the anticipated demand for electric vehicles, with a significant portion of lithium sourced from Chinese refineries. The onshore or EU delivery of lithium is becoming a critical concern for automotive manufacturers like VW, Ford, and Jaguar Land Rover, especially as the ‘rules of origin’ deadline in 2024 will mandate that 60% of battery packs come from the UK or Europe, or else manufacturers will face fines from regulators.
GEL was recently awarded £1.8m by the Automotive Transformation Fund (ATF) Scale-up Readiness programme. These funds will be used to fund the 100 tonnes per annum units.
Ryan Law, CEO of Geothermal Engineering Ltd, stated, “We are extremely excited by the high concentration of lithium that we have found in our geothermal wells in Cornwall as it will enable us to produce meaningful quantities of lithium without damaging the environment. Our ability to produce both zero-carbon lithium and zero-carbon baseload power will provide a foundation for the electric car market to be truly sustainable in the UK. The importance of our projects is now being recognised by the Government with recent grant funding awards and secure contracts for the electricity we produce. This is helping us to secure the further investment required for a rapid roll-out of projects to enable the UK to reach its ambitious targets. Cornwall is in a unique position in hosting these significant lithium and geothermal reserves. We hope that establishing Cornwall as a significant hub for lithium-related activities alongside its exciting geothermal potential, new job opportunities and significant economic growth will be brought to the region.”
Jason Cheng, CEO and Co-Founder of Kerogen Capital commented: “The high concentration of lithium found at United Downs underpins GEL’s potential to fulfil a significant portion of the UK’s lithium demand. It is an extremely exciting and significant development. Securing the production of domestic zero-carbon lithium will be crucial to the UK’s energy transition, as the demand for batteries for applications such as EVs and grid-scale storage continues to grow. We look forward to supporting GEL during this next phase of growth.”