Electric-Rig Direct Lithium Extraction From Geothermal Brine: The Economics of Vercana Versus Ormat Vulcan Energy Resources is pursuing an integrated model that combines geothermal drilling, direct lithium extraction, renewable electricity and industrial heat. Through its Vercana subsidiary, the company is also using electric drilling equipment designed to support the development of its Lionheart project in Germany’s Upper Rhine Valley. The approach differs from the conventional geothermal model represented by Ormat Technologies, whose core business remains geothermal power generation, equipment, project development and energy storage rather than commercial lithium recovery from geothermal brine. The economic question is broader than whether an electric drilling rig costs less to operate than a diesel rig. The more important issue is whether electric drilling, geothermal energy and direct lithium extraction can create a more valuable integrated project than a conventional geotherm...
Cornish Lithium Secures £7.2 Million UK Government Funding for Cross Lanes Geothermal Lithium Project
Cornish Lithium has secured £7.2 million in UK Government grant funding to advance its Cross Lanes Geothermal Lithium Project in Cornwall. The funding will support a £14.5 million programme of drilling, testing and technology demonstration designed to assess whether lithium can be produced commercially from naturally occurring geothermal waters.
The project represents an important development for the UK’s critical minerals strategy. It combines geothermal energy, direct lithium extraction and domestic mineral production in a single development model. If successful, Cross Lanes could contribute to the UK’s ambition to establish a secure, lower-carbon supply of lithium for electric vehicle batteries, energy storage systems and other advanced manufacturing applications.
The grant will also enable Cornish Lithium to undertake further appraisal drilling at Baldhu, near Truro. Together, the planned activities are intended to improve understanding of the resource, demonstrate the performance of the extraction process and generate the technical and economic information required for future commercial decisions.
What the Cross Lanes Funding Means
The £7.2 million award has been provided through the UK Government’s DRIVE35 programme. Cornish Lithium will match the funding pound for pound, creating a total programme value of £14.5 million. The investment is expected to finance two 2,000-metre production wells at Cross Lanes, operation of a Direct Lithium Extraction demonstration plant and the drilling of an appraisal well at Baldhu
At this stage, the funding is designed to support evaluation rather than guarantee commercial production. The programme will examine whether lithium-enriched geothermal waters can be produced consistently, processed efficiently and converted into a saleable lithium product at a competitive cost.
Those questions are central to the future of geothermal lithium in Cornwall. Resource concentration, well productivity, water chemistry, extraction efficiency, reinjection performance, operating costs and environmental controls will all influence the eventual commercial outcome.
Understanding Geothermal Lithium
Geothermal lithium projects seek to recover lithium from hot underground brines that circulate through deep geological formations. These fluids can contain dissolved minerals picked up as water moves through rocks at elevated temperatures and pressures.
In Cornwall, the geological setting has created interest in the potential connection between deep geothermal resources and lithium-bearing waters. Rather than extracting lithium from conventional hard-rock mines or evaporation ponds, a geothermal lithium project aims to bring hot water to the surface, recover the lithium and reinject the treated water underground.
This approach can potentially combine mineral extraction with renewable heat or power production. However, the technology remains complex, and each project depends heavily on the characteristics of its underground reservoir and the chemistry of the fluid.
Direct Lithium Extraction, commonly known as DLE, refers to a group of technologies designed to selectively remove lithium from brine. Depending on the process, lithium may be captured using adsorption materials, ion-exchange systems, membranes, solvent-based techniques or other chemical and electrochemical methods.
Compared with conventional evaporation methods, DLE can offer a more compact processing footprint and a potentially faster recovery cycle. It may also be suitable for brines that contain lithium at concentrations too low for traditional evaporation ponds. Nevertheless, DLE performance depends on the composition of the brine and the ability of the process to manage competing minerals and impurities.
The demonstration plant at Cross Lanes will therefore be an important part of the programme. It is expected to provide practical data on lithium recovery rates, process stability, reagent consumption, water treatment, equipment performance and the quality of the resulting intermediate or final product.
Results from Earlier Exploration
Exploration drilling and testing completed in 2023 established the presence of lithium-enriched geothermal waters at the Cross Lanes site near Chacewater. The results indicated that naturally circulating fluids within the underlying rock formations contain lithium that may be recoverable through an appropriate extraction process.
The discovery provided the basis for further technical work, but it did not by itself establish a commercial resource. Additional drilling is required to understand the extent, continuity and productivity of the geothermal system. Testing must also determine whether water can be circulated through production and reinjection wells over a sustained period.
In 2025, Cornish Lithium secured planning consent for the development of the site, including further phases of testing and evaluation. The consent created a pathway for the company to continue advancing the project while gathering information needed for future development planning.
Why Production Wells Matter
The two planned 2,000-metre production wells are expected to provide critical information about the Cross Lanes geothermal reservoir. A production well is used to access underground fluids, measure flow rates and evaluate temperature and chemical characteristics at depth.
Deep drilling can reveal whether the reservoir can deliver sufficient volumes of lithium-bearing water for a commercial operation. It can also help engineers determine the pressure, permeability and connectivity of the formations that control fluid movement underground.
Production testing may involve controlled flow periods, pressure monitoring and repeated sampling. These activities can identify changes in lithium concentration, temperature or flow performance over time. The results will help shape the design of future wells, pumps, heat exchangers, extraction equipment and reinjection systems.
The Role of Reinjection
Reinjection is a core principle of many geothermal lithium projects. After lithium and other valuable materials are removed, the treated geothermal water can potentially be returned to the subsurface through a separate well.
A carefully designed reinjection system can help maintain reservoir pressure and reduce the need for surface disposal. It may also support the long-term sustainability of the geothermal resource. However, reinjection requires detailed understanding of underground geology, fluid compatibility and the potential for mineral scaling or clogging.
Monitoring will be essential throughout the project. Operators may need to track pressure, temperature, fluid chemistry, seismic activity and the movement of injected water. These controls help ensure that the geothermal system performs predictably and that environmental risks are properly managed.
Baldhu Appraisal Drilling
In addition to Cross Lanes, the funding will enable further appraisal drilling at Baldhu, near Truro. Appraisal drilling is used to gather more detailed information about a previously identified geological target.
The Baldhu work could help determine whether lithium-enriched geothermal waters occur across a wider area of Cornwall. It may also provide comparative information about reservoir depth, temperature, fluid chemistry and drilling conditions in different parts of the region.
Developing several prospective sites could eventually give Cornish Lithium greater flexibility in planning a regional production network. However, each site must be evaluated independently because resource quality and project economics can vary considerably over relatively short distances.
Importance for UK Lithium Supply
Lithium is a key raw material for lithium-ion batteries used in electric vehicles, consumer electronics and large-scale energy storage systems. Demand for the mineral is closely linked to vehicle electrification, renewable power deployment and the expansion of battery manufacturing.
The UK currently relies heavily on imported lithium and battery materials. Domestic production could reduce exposure to international supply disruptions, shipping constraints, geopolitical tensions and changing commodity prices.
A local supply chain could also create stronger links between mineral extraction, chemical processing, battery manufacturing and vehicle production. This is particularly relevant as the UK seeks to build industrial capacity around clean transport and energy technologies.
Alignment with the Critical Minerals Strategy
The UK Government’s Critical Minerals Strategy identifies lithium as an essential material for the energy transition. The strategy includes an ambition to support domestic lithium production of 50,000 tonnes per year by 2035.
Cornish Lithium’s projects are aligned with this broader policy direction because they focus on developing a domestic source of a strategically important mineral. The company’s work also connects with the UK’s industrial strategy, clean growth objectives and advanced manufacturing priorities.
Domestic production alone will not eliminate the need for international supply chains. Lithium extraction must still be supported by refining, chemical conversion, battery manufacturing, recycling and responsible imports. Even so, a domestic source could improve the resilience and diversity of the UK’s overall supply system.
Connection with DRIVE35
DRIVE35 is part of the UK Government’s wider support for research, development, scale-up and transformation in the automotive sector. The programme is linked to the objective of achieving a zero-emission future and includes significant grant funding for automotive innovation through 2035.
The Cross Lanes project supports this objective by focusing on a raw material required for electric vehicle batteries. A secure supply of responsibly produced lithium could strengthen the upstream foundations of the UK automotive industry.
The funding also demonstrates how mineral projects can contribute to advanced manufacturing policy. Lithium may be extracted in Cornwall, processed into battery-grade chemicals and eventually supplied to manufacturers operating elsewhere in the UK or Europe.
Potential Environmental Benefits
Geothermal lithium production may offer environmental advantages compared with some conventional mining and brine production methods. The process is designed around deep wells, closed-loop fluid management and selective lithium recovery rather than large open pits or extensive evaporation ponds.
The potential environmental performance of the project will depend on how the wells, processing plant, water systems and waste streams are designed and operated. Energy use, chemical consumption, emissions, land requirements and water management must all be considered across the project lifecycle.</p>
The geothermal component could create an additional benefit if heat from the underground fluids is used directly or converted into electricity. Using geothermal heat within the extraction process could improve energy efficiency, although the final system design will depend on reservoir temperature and engineering requirements.
Technical Challenges Ahead
Geothermal lithium development remains at an early stage in many parts of the world. The most important challenge is proving that the underground resource can support stable, long-term production.
The new drilling and testing programme is intended to address these questions. Its results will help determine whether Cross Lanes can move from demonstration to a larger commercial development.
Economic Impact for Cornwal
A successful geothermal lithium industry could deliver economic benefits across Cornwall. These may include direct employment in drilling, engineering, geology, laboratory testing, plant operations and environmental monitoring.
Additional opportunities could emerge for local contractors, equipment suppliers, transport companies, professional services firms and training providers. A growing regional supply chain could also support technical skills development and encourage collaboration with universities and research organisations.
Cornish Lithium’s wider activities, including community liaison and community funding, are intended to support engagement with local stakeholders. Meaningful consultation will be important as drilling, testing and potential future construction progress.
Community and Planning Considerations
Large energy and mineral projects require careful communication with nearby communities. Residents may have questions about drilling traffic, noise, land use, water management, visual effects and the long-term operation of the site.
Planning consent provides a regulatory framework for the approved activities, but ongoing engagement remains important. Transparent reporting can help communities understand what is being tested, what risks are being monitored and how project decisions will be made.
If the project advances to commercial production, future planning applications may address larger facilities, additional wells, processing infrastructure, pipelines and supporting utilities. Each stage will need to demonstrate compliance with environmental and planning requirements.
What Happens Next
The immediate priority is to implement the funded drilling and testing programme. This includes drilling the two production wells at Cross Lanes, conducting flow and chemistry tests, and operating the DLE demonstration plant.
The company is also expected to drill an appraisal well at Baldhu. Data from both locations can improve geological models and help compare their technical potential.
After the testing programme, Cornish Lithium will be better positioned to assess the technical and economic viability of commercial production. A future investment decision would depend on the results of the wells, the DLE plant, environmental studies, customer requirements, permitting and project financing.
Why the Project Matters
The Cross Lanes Geothermal Lithium Project sits at the intersection of several major energy and industrial trends. It combines the search for domestic critical minerals with the development of geothermal resources and the expansion of low-emission transport.
Its significance extends beyond the potential production of lithium. The project could help demonstrate whether Cornwall’s geological resources can support a modern, technology-led minerals industry with strong links to the clean energy economy.
At the same time, the project illustrates the importance of disciplined evaluation. Grant funding and planning consent enable further investigation, but commercial production will depend on evidence generated through drilling, testing and technical analysis.
Frequently Asked Questions
What is the Cross Lanes Geothermal Lithium Project?
It is a Cornish Lithium project near Chacewater that aims to evaluate the recovery of lithium from naturally occurring, lithium-enriched geothermal waters deep underground.
How much funding has Cornish Lithium secured?
Cornish Lithium has secured £7.2 million in UK Government DRIVE35 grant funding and plans to match the amount, supporting a total programme valued at £14.5 million.
What will the funding support?
The programme will support two 2,000-metre production wells at Cross Lanes, a Direct Lithium Extraction demonstration plant and an appraisal well at Baldhu near Truro.
What is Direct Lithium Extraction?
Direct Lithium Extraction is a group of technologies that selectively recover lithium from brine using methods such as adsorption, ion exchange, membranes or other separation processes.
Will the project produce lithium commercially?
The funding supports technical and economic evaluation. Commercial production will depend on the results of drilling, testing, process demonstrations, environmental assessment and future investment decisions.
Why is lithium important?
Lithium is used in rechargeable batteries that power electric vehicles, portable electronics and stationary energy storage systems. It is therefore considered an important material for the energy transition.
Conclusion
Cornish Lithium’s £7.2 million DRIVE35 grant marks a significant step in the development of the Cross Lanes Geothermal Lithium Project. Combined with the company’s matching contribution, the £14.5 million programme will fund production drilling, geothermal testing, Direct Lithium Extraction demonstration and further appraisal work at Baldhu.
The results will help establish whether Cornwall can support commercial lithium production from geothermal waters. If the technical and economic case is proven, the project could contribute to the UK’s critical minerals strategy, strengthen domestic battery supply chains and create new opportunities for Cornwall’s clean technology economy.
For now, the focus remains on gathering reliable evidence. The next phase of drilling and testing will determine whether Cross Lanes can progress from an encouraging geological discovery to a commercially viable geothermal lithium operation.
Related: Geothermal Innovation, Superhot Systems, Social License, and the Future of Global Geothermal Energy
Source: Cornish Lithium
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