Lithium mining project on hold amid funding issues

A project once hailed as part of a new "gold rush" for Cornwall has been put on hold.

The project, launched in June 2023 by Imerys British Lithium (IBL), was intended to operate the UK's "leading lithium hub" within five years from granite in china clay pits near St Austell.

In a statement on Thursday, IBL said funding constraints and tough market conditions were to blame for the pause.

The government said it was a commercial decision and that it had engaged extensively with Imerys to try to reach a solution.

In May 2025, the mineral supplier announced an investment in its dry mining process worth about £18m.

Mark Hewson from Imerys UK said: "We have a huge potential in our lithium project here but given what's going on in the world right now, given the market conditions that Imerys were facing, it was responsible to take a pause."

UK mining specialist James McFarlane said the decision seemed to be strategic.

"I don't think it is really a reflection of Cornwall, the UK, or the project itself which had some very good points to it", he said.

A government spokesperson said: "We have engaged extensively with Imerys to try and help them reach a solution.

"This is a commercial decision but we will continue to support them where possible.

"We know this will be a challenging time for the workers and their families and we stand ready to support through the Department for Work and Pensions Rapid Response Service."

Imerys added that it is keen to stress this is a case of when the venture will start again not if, with several other lithium projects advancing well in Cornwall.

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