The creation of Great British Energy, the allocation of capital in the National Wealth Fund and the proposed reform of planning policy and other key policy initiatives clearly signal the new Government’s intent to invest to accelerate the UK’s path to net zero.
As recognised in the UK Critical Minerals Strategy, Cornwall’s critical minerals resources: lithium, tin and tungsten are essential components of a commercially and environmentally sustainable net zero UK economy, positioning the region as a linchpin in the future of the UK’s energy transition.
Manufacture and adoption of electric vehicles, all forms of rechargeable industrial consumer electronics and grid-scale electricity storage to allow the full potential of renewable energy to be realised all rely on an effective critical minerals supply chain.
For example, companies developing lithium in Cornwall, a region that hosts the largest lithium resource in Europe, could meet more than half the projected demand for lithium by 2030, a domestic raw material target that should be enshrined in government policy and supported with continued, targeted government investment. Accelerating the development of Cornwall’s critical minerals resources would deliver, de-risk and decarbonise critical minerals supply chains vital to the future of the UK manufacturing-based sectors.
The role of Cornwall’s critical minerals was further highlighted by the recent announcement by UK Research and Innovation (UKRI) of a £4.5 million investment in a new research centre to accelerate critical mineral extraction in Cornwall and Devon.
The Critical Minerals Accelerating the Green Economy Centre will be based at the University of Exeter’s Penryn campus in Cornwall and build on the world-class strengths of the University’s Camborne School of Mines. Announcing the investment, UKRI said: “South west England is the leading UK region for potential production of critical minerals.”
Powerhouse for green technologies
The UK has started to build the components of a “mines to wheels” supply chain. From mining battery-grade lithium in Cornwall, producing EV batteries at the Agratas gigafactory near Bridgwater in Somerset, all powered by 100% renewable energy enhanced by the development of floating offshore wind in the Celtic Sea, the south west is positioned to become a powerhouse for green technologies and much more.
When realised, the potential of Cornwall’s critical minerals resources will have a significant impact reducing carbon emissions, it will bolster the UK’s economic resilience, strengthen energy security, and create much-needed high-quality, high-productivity careers in the region and across the UK through supply chain development.
Development of critical minerals in Cornwall has already attracted significant UK and foreign direct investment, complemented by UK Government equity investment through the UK Infrastructure Bank and grant funding from sources including the Automotive Transformation Fund. This private/public co-investment needs to be sustained if Cornwall’s critical minerals are to realise their full potential.
The Good Growth Programme and regional investment
Recent government investment in the development of critical minerals in Cornwall has come from Cornwall and Isles of Scilly Good Growth Programme, managed by Cornwall Council. This has invested £6.57 million in a series of strategic projects that will build Cornwall’s critical minerals industry into a strategic asset for the region and the UK. In doing so Cornwall can attract millions of pounds of UK and foreign direct private sector investment.
Projects supported range from exploration projects to harness lithium and heat from geothermal water, to major investment in critical minerals processing, sector-specific skills development, and cluster-building initiatives.
The Good Growth Programme has been funded as part of a three-year settlement from the Government’s Shared Prosperity Fund. This has enabled a variety of projects designed to boost local economies, strengthen regional industries, and support the UK’s net zero ambitions.
A critical time for sustained investment
There is clear evidence that the Good Growth Programme has helped lay the foundation for Cornwall’s critical minerals industry and, consistent with net zero objectives and the UK Critical Minerals Strategy, given confidence to private investors that Government is serious about developing a home-grown critical minerals supply chain.
However, this funding is set to expire in March, at the very time development should be accelerated, building into increased demand. In the absence of sustained funding there is a risk that momentum will be lost, investor confidence undermined and regional growth the UK’s strategic goals for energy security and net zero compromised.
The Government’s Budget on October 30 presents a timely opportunity to mitigate this risk by committing to sustained funding for the Good Growth Programme. By extending financial support for critical growth sectors including critical minerals, the Government will unlock long-term economic growth, generate thousands of high-quality, high-productivity jobs, support UK-wide supply chain development and, in doing so, secure the UK’s cleaner, greener energy future.
Jeremy Wrathall is founder and CEO of Cornish Lithium.
