Northern Lithium has announced plans to raise £6 million following successful test trials at its North East site. The company aims to continue its efforts to extract lithium, a crucial component in electric vehicle batteries, marking significant progress.
Northern Lithium, which has been operating in the North East since its founding in 2017, recently completed a 30-day lithium brine pump testing programme. The results showed long-term yields of lithium that exceeded expectations, enabling the company to advance its commercialisation plans.
The company’s operations have thus far been supported by private investors and some Government support through the Automotive Transformation Fund. Now, Northern Lithium seeks to raise approximately £6 million to accelerate further trials. The fundraising efforts will target high net worth individuals and offer smaller investors the opportunity to participate through a Crowdcube offering.
The UK’s automotive sector is projected to require up to 80,000 tonnes of Lithium Carbonate Equivalent annually by 2030, with current lithium sources predominantly located in China, South America, and Australia. Northern Lithium intends to use water from beneath the North Pennines to produce lithium carbonate for batteries.
According to Managing Director Nick Pople, the successful test results are a significant milestone. He stated, “With a clear path to commercialisation now demonstrated, we remain confident in meeting our goal to achieve first commercial production from 2027 and within the next decade scale up to in excess of 10,000 tonnes of battery-grade lithium delivered per year from production sites across the Northern Pennine Orefield.” Pople added that the current fundraising programme would provide the necessary resources to further develop the business.
Julian Hetherington, Director of Automotive Transformation at the Advanced Propulsion Centre UK, commented on Northern Lithium’s progress: “I’m delighted to see the significant progress made by Northern Lithium following support from the Automotive Transformation Fund. We hope that this project will play an important part in the UK becoming self-sufficient in battery-grade lithium, supporting the UK’s green growth ambitions.”
Northern Lithium holds up to 45 years of exclusive development, appraisal, and production rights on 60,000 acres of mineral rights in the North Pennine Orefield, covering regions in Northumberland, County Durham, and Cumbria. These rights are owned by the Church Commissioners for England.
Northern Lithium’s announcement marks a pivotal moment in the UK’s efforts to secure a domestic supply of lithium for electric vehicle batteries. The upcoming £6 million fundraise will be crucial in moving the company closer to commercial production and contributing to the nation’s green growth objectives.