UK Launches First Geothermal Plant to Secure Domestic Power and Lithium Supply

2026-02-26 global

London, Thursday, 26 February 2026.
This pioneering Cornwall facility taps subterranean heat to generate continuous renewable power and, crucially, provides the UK’s first commercial source of lithium—securing a vital domestic supply chain for the electric vehicle market.

A Dual-Purpose Energy Breakthrough

In a landmark development for the British energy sector, the United Downs geothermal power plant in Cornwall officially began commercial operations on Thursday, February 26, 2026 [1][3]. Operated by Geothermal Engineering Ltd (GEL), this facility represents the United Kingdom’s first deep geothermal plant capable of generating electricity from subterranean heat while simultaneously securing a domestic supply of lithium [1][5]. The project, which has been in development for nearly two decades, utilizes a 0.6-hectare site near Redruth to tap into the Porthtowan Fault Zone, marking a pivotal shift toward integrating renewable baseload power with critical mineral extraction [3][5]. The launch was hailed by Chancellor Rachel Reeves as a “pioneering project” that positions Cornwall as a vital player in the nation’s energy security [3].

Engineering the “Underground Nuclear Power Station”

The engineering feat behind the United Downs facility involves drilling to extreme depths to access the Earth’s natural thermal reserves. The plant utilizes two deep, directional wells: a production well drilled to a depth of 5,275 meters (approximately 3.2 miles) and an injection well reaching 2,393 meters [6][8]. At these depths, water circulates through fractures in the granite rock, reaching temperatures of nearly 200°C due to the radioactive decay of isotopes within the granite [1][8]. GEL Chief Executive Ryan Law described the resource as an “enormous nuclear power station underground” that the company is simply tapping into [3]. Once the super-heated water is brought to the surface to generate electricity, its temperature drops to approximately 50°C to 55°C, a thermal range that is ideal for the subsequent stage of lithium extraction before the fluid is reinjected into the ground [3][6].

Strategic Lithium Supply for the EV Market

Beyond electricity, the facility addresses a critical vulnerability in the Western supply chain: the dependence on imported materials for electric vehicle (EV) batteries. The plant is the UK’s first commercial source of lithium, extracting the mineral from geothermal fluid that contains over 340 parts per million (ppm) of lithium [1][6]. Initially, the site will produce 100 tonnes of lithium carbonate annually, a volume sufficient to supply approximately 1,400 EV batteries [1][5]. However, GEL has outlined ambitious plans to scale this production significantly over the next decade. The company aims to increase output to 18,000 tonnes per year, which would meet the battery requirements for roughly 250,000 electric vehicles annually [1][5]. This expansion represents a massive increase of 17900% from the initial production capacity, signaling a major boost for domestic automotive manufacturing.

Financing and Economic Viability

The realization of the United Downs project required substantial capital investment, totaling £50 million (approx. US$63 million) [1][5]. Funding was secured through a blend of private investment and public grants, including £15 million to £18.9 million from the European Development Fund and a £1.8 million (US$2.27 million) grant from the UK government specifically covering 50% of the initial lithium extraction pilot facility [2][5][8]. The economic model is bolstered by the dual revenue stream; New Scientist reports that revenue from lithium sales could potentially exceed electricity revenue by tenfold, making geothermal projects far more attractive to investors than power generation alone [8]. The project has already created approximately 100 jobs, employing a diverse range of specialists including geologists, chemists, and engineers [3].

Stabilizing the Grid with Baseload Power

While the lithium component offers high financial upside, the plant’s contribution to the national grid provides essential stability. Unlike wind or solar energy, which are weather-dependent, geothermal energy offers “always-on” baseload power [2]. The facility generates 3 megawatts (MW) of electricity, which is sold to Octopus Energy and distributed via the National Grid to power approximately 10,000 homes [2][6][8]. This reliability is increasingly critical as demand for consistent clean energy rises. As Ryan Law noted, the sector is being driven in part by an “insatiable demand for 24/7 renewable energy,” a sentiment echoed by industry trends where major tech companies are seeking geothermal solutions for data centers [1][8]. GEL is currently planning to develop two additional sites in Cornwall, targeting a further 10 MW of baseload power by 2030, although one proposed site is currently under appeal due to environmental concerns [2][6].

Sources

Geothermal energy Lithium supply