Cornish lithium mine will get £54 million in new backing
T
he new UK Infrastructure Bank has invested round £24 million right into a undertaking to construct a brand new lithium mine in Cornwall, injecting very important money into the undertaking.
Cornish Lithium mentioned that it had raised 67 million US {dollars} (£53.6 million) from three buyers.
This included the primary ever fairness funding – the place an investor gives cash in return for shares within the enterprise – for the UK Infrastructure Bank, which was introduced by the Government in 2020.
A US personal fairness investor, Energy & Minerals Group (EMG), invested round 30 million {dollars} (£24 million) and TechMet, a present shareholder who’s placing in an additional seven million {dollars} (£5.6 million).
It brings TechMet’s complete funding to 30 million {dollars} (£23.6 million), the identical as each the UK Infrastructure Bank and EMG. TechMet is partly backed by the US authorities.
“Our 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,” mentioned UK Infrastructure Bank chief govt John Flint.
“Globally, the supply of lithium is far outpaced by demand, and yet in the UK it remains a nascent market.
“Our investment has already crowded in private sector financing which will greatly accelerate domestic production of a mineral which is critical to the future of EV battery production and decarbonisation of the transport sector.”
Cornish Lithium founder and chief govt Jeremy Wrathall mentioned the money could be used to make one among its tasks “construction ready” and design an indication of one other undertaking.
He hopes the tasks may carry round 300 jobs to the area. Cornish Lithium immediately employs 70 individuals.
“These project milestones are expected to generate a significant value uplift for all of our shareholders and create substantial benefits for the local community,” Mr Wrathall mentioned.
“As well as creating job opportunities and fostering innovation, the investment signals confidence in our ambitions and will drive forward the modern-day renaissance of Cornwall’s 4,000-year mining heritage.
“It is also a positive development for the UK’s automotive industry and green industrial revolution.
“A domestic source of lithium will strengthen the UK’s car manufacturing supply chain and improve its competitiveness whilst reducing the carbon footprint associated with the manufacture of batteries and electric vehicles.”