Slaughter and May is advising UK Infrastructure Bank on its investment in Cornish Lithium Plc

Slaughter and May is advising UK Infrastructure Bank on its initial equity investment of approximately £24 million to support Cornish Lithium Plc in the development of the UK’s critical minerals supply chain.

The investment, which is the Bank’s first equity deal, will help finance the creation of a domestic supply of lithium, which is crucial to the scaling up of battery production for electric vehicles and the development of battery energy storage – both key sectors in the UK’s transition to net zero.

The Bank’s involvement facilitated matched funding by The Energy & Minerals Group (EMG), a US-based private equity fund focused on the energy and minerals sectors. Cornish Lithium’s existing institutional shareholder, TechMet, the energy-metals investment company, whose major backers include the US Government, is investing a further US$7 million, bringing their total investment into Cornish Lithium to $30m.

The initial investment is part of a larger funding package of up to an additional c.£168 million potential second-stage financing, which is expected to provide the equity foundation necessary for the pioneering mineral exploration and development company to achieve commercial production. The investment aligns with the Bank’s core mandate to support the UK’s transition to net zero and boost regional and local economic growth.