Cornish Lithium faces uncertain future as it scrambles for £10m lifeline
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One of the UK’s future lithium producers is at risk of collapse, unless it can secure £10m financing deal by the end of next month.
Cornish Lithium has warned investors in its latest annual report that the company needs the cash injection to “ensure the business can meet its financial commitments”.
It was forecasting the start of production from 2026, but now the firm is scrambling for cash – exposing its depleted reserves in its accounts signed off earlier this month.
Cornish Lithium, which posted a £6.6m loss in 2022, also revealed that even if secures the £10m, it needs medium to long-term support to avoid “mitigations” which will “reduce planned spending”.
The minerals specialist was expected to be at the centre of the UK’s electric vehicle ambitions, with the government power domestic production of electric cars and batteries with a reliable supply of lithium.
Chairman Ian Cockerill blamed the lack of subsidy support for the company’s difficulties, accusing the government of failing to match the investment conditions offered in the US and EU.
“The lack of an industrial strategy has left the UK at a significant disadvantage in the race to build electric vehicles,” he said in the accounts.
The government has been approached for comment.
The company is not the only lithium player in the region. Geothermal Engineering has found significant concentrations of lithium within the deep geothermal fluid of its facilities in United Downs, near Redruth.
Rystad Energy calculates that there is as much as a 50 per cent deficit in projected supplies relative to the amount needed to meet growing electric vehicle demand.