On Tuesday, Geothermal Engineering Limited (GEL) announced plans to provide zero-carbon lithium onshore in the UK from next year, derived as a by-product from their geothermal mines in Cornwall.
GEL plans to produce approximately 100 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) by late 2024, with the goal of scaling up to at least 1,000 tpa from this site as early as 2026.
This capacity would be sufficient to manufacture about 250,000 electric vehicle batteries for an average-sized car.
In context, this production level would have covered 94% of the LCE required for the 267,000 new battery electric vehicles (BEVs) registered in the UK in 2022.
GEL recently received support from government funding through the Automotive Transformation Fund, enabling the commencement of geothermal lithium production in 2024.
The company has identified one of the most significant concentrations of geothermal lithium in Europe within the initial deep wells at its United Downs power plant site in Redruth.
GEL’s main geothermal operations involve generating consistent geothermal electricity and heat. This process yields a naturally hot geothermal brine, from which lithium can be extracted sustainably in the UK.
By using zero-carbon geothermal power for the extraction, companies like GEL avoid the water-intensive evaporation ponds and the carbon-intensive quarrying and extraction methods employed in large open-cast mines commonly used for lithium production.
Current lithium production in Europe falls significantly short of meeting the anticipated demand for electric vehicles. China currently supplies most of the lithium used in the region.
The timely onshore or EU sourcing of lithium is becoming critical for automotive manufacturers such as VW, Ford, and Jaguar Land Rover.
The ‘rules of origin’ deadline in 2024 stipulates that 60% of battery packs must originate from the UK or Europe. Failure to meet this requirement could result in fines imposed by regulators.
The company holds planning permission for two additional geothermal projects in Cornwall and aims for rapid expansion, targeting over 12,000 tpa in the UK by 2030.
According to Ryan Law, CEO of Geothermal Engineering Ltd., “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,”, he added.