With the general election approaching, different parties have been publishing their manifestos. Amid a myriad of issues and proposals, those who provide the raw materials for batteries here in the UK will be particularly interested to see what kind of support they might get from the government in the next parliament.
Speaking at the UK Mining Conference ahead of the election, Jeremy Wrathall, the CEO of Cornish Lithium, called on the government to “continue to be proactive and engaging” with the lithium mining sector. But will they be? The signs look positive.
As things stand, the polls are indicating the overwhelming likelihood of Labour taking office with a thumping majority, so it makes sense to consider first what might be coming with Keir Starmer in Downing Street.
Labour Plans And A Conservative Record
A key feature of Labour’s plans is an industrial strategy that will include £1.5 billion of government money to support the construction of new gigafactories across the UK.
However, while the manifesto also lists carbon capture and the development of green hydrogen as being important, there is no headline mention of mineral production or refining, which is vital to provide the material those gigafactories will be turning into batteries. It remains to be seen what they do.
The Conservative manifesto was quick to highlight the government’s record in this area, noting that despite “dire warnings” that Brexit would lead to an exodus of the car industry from the UK, new investment was coming in, including a planned £4 billion gigafactory in Somerset.
In addition, the manifesto also pledged to support the sector from a demand-side perspective, by encouraging electric vehicle use by making sure the charging infrastructure is “truly nationwide”.
What The Other Parties Propose
As for Reform UK, which has attracted so much publicity with its rise in the polls, the party may be scathing about the value of Net Zero, but it has still said it will “increase and incentivise UK lithium mining for electric batteries”.
It appears, therefore, even amid its attempt to appeal to those sceptical about climate change, the cost of Net Zero of the impact Britain alone can make on the global climate when countries like China and India produce vastly more emissions, there is still recognition of the economic and technological value of the industry.
The Liberal Democrats have said they will incentivise the take-up of electric vehicles as well as supporting an increase in battery storage capability through investment in research and development.
Mr Wrathall has certainly been pleased with the current government’s backing. In March, he welcomed the government’s minister for industry and economic security, Nuserat Ghani MP, to Cornish Lithium’s site at Trelavour.
On that occasion, Mr Wrathall said: “The support we have received from the Government at both a national and local level has been invaluable in helping us to attract the investment needed to advance our exciting portfolio of projects.”
He added that this could “provide the UK with a responsibly-sourced supply of lithium for electric car batteries and renewable energy storage”.
The Plans the Government Must Back
Cornish Lithium’s plans involve extracting up to 10,000 tonnes of lithium a year from the site, starting in 2027. They should be far from the only lithium producers in England either; Weardale Lithium in County Durham submitted a planning application to the county council last month for the phased development of its own extraction plant.
If successful, the new plant at Eastgate would, like Trelavour, produce 10,000 tonnes of lithium a year, as well as generating £1 billion for the local economy and generating local jobs.
With a new domestic lithium mining and extraction industry starting in the UK and the first two lithium refineries, both in the Tees Valley, set to begin operating in the next couple of years, it may be that the probably Labour government might be cheeky enough to pinch a bit of credit for this coming to fruition on its watch.
Although such claims would be contested as a matter of fact by what remains of the Conservatives as a parliamentary force, the effect of an election result that rewrites the record books could be that Labour will be in a strong position to hold office for multiple terms.
This means they will need to go on supporting the sector so that further progress can be seen for which nobody else could take any credit.
However, while these things may matter to some from a partisan point of view, the lithium-producing sector will be more concerned that there is, both now and in the future, a cross-party consensus in favour of offering ongoing support for further growth and research.