Proactive Investors - Britain’s nascent lithium mining industry has received major backing from the UK’s new vehicle to channel infrastructure investment.
In what is its first direct equity stake, UK Infrastructure Bank has joined Energy & Minerals Group and Techmet in pumping £53mln into Cornwall-based miner Cornish Lithium (LON:CUSN).
The government said the funding would "support the development of the UK’s critical minerals supply chain and will accelerate growth towards the commercial production of lithium, vital for the UK’s transition to net-zero".
Privately owned with Techmet its largest shareholder, Cornish Lithium wants to produce about 8,000 tonnes per year of battery-grade lithium hydroxide, currently the core component of batteries used in electric vehicles, from its hard rock deposit at Trelavour Downs
UK Infrastructure Bank's chief executive John Flint said: "Globally the supply of lithium is far outpaced by demand, and yet in the UK it remains a nascent market."Our investment ... will greatly accelerate domestic production of a mineral which is critical to the future of EV battery production and decarbonisation of the transport sector."
Launched in June 2021, the UK Infrastructure Bank is tasked with providing £22bn of infrastructure finance for projects in Britain through the private sector and local government