Cornish Lithium has announced it needs a £10m cash injection by next month.
The Penryn-based company, which has undertaken a number of projects to demonstrate commercial capability of lithium production in Cornwall, has said it needs to secure short-term funding to allow itself time to secure a long-term financial agreement.
In its annual report, the company said this cash injection will "ensure the business can meet its financial commitments” after July 2023 and fulfil its development objectives over the next 12 months.
Cornish Lithium posted a loss of £6.6m in 2022, which chairman Ian Cockerill blamed on the lack of government subsidy support.
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Mr Cockerill said: "The UK is currently being left behind in this global race to secure the industries that drive energy transition. More support is needed to counteract the effect of the US and the EU subsidies that are being offered to help attract the investment required in the UK."
The company is only one of a few in the UK aiming to produce the element that is a vital material in car battery production. The UK doesn't produce its lithium currently, which Cornish Lithium hopes to change by 2026.
The company aims to complete a deal for the £10m investment from existing investors, including TechMet, a Dublin-based and US government-backed investment vehicle. In its annual statement Cornish Lithium said it was is in "advanced negotiations" with potential new investors as part of wider refinancing.
In its annual statement Cornish Lithium said: "It is management's firm view that Cornish Lithium is a uniquely attractive prospect for investors. Cornish Lithium has made strong progress in de-risking its hard rock and geothermal projects.
"This progress combined with its extensive mineral rights portfolio, which allows it unrivalled access to Cornwall's abundant mineral wealth and the backdrop of increasing global demand for battery-grade lithium, means that the board are confident of the business' ability to raise sufficient funds which will allow it execute its business plan over the short and medium term."
Jeremy Wrathall, chief executive and founder of Cornish Lithium, has since said: “The directors and I are confident with the direction of the business, the progression of our current projects, our spending and future funding. As stated by the recent press articles, Cornish Lithium is the flagship of the UK lithium industry, and we are proud to say our current projects are moving at pace. These include two forms of lithium extraction, Hard Rock and Geothermal, both of which are at a really exciting stage, as outlined in our recent report. We’re here for the long game and as such we’ll be updating our shareholders regarding funding very soon.”
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