UK lithium miner taps up wealthy backers
A UK-based lithium miner targeting production in the North East is planning to raise £3m from rich backers and retail investors, ahead of an anticipated £30m fundraise later this year.
Northern Lithium, which is looking to extract lithium from the Ludwell Farm site in County Durham, said the funding would come from existing shareholders and new high-net worth individuals. It will also launch a Crowdcube fundraising campaign imminently.
The funding will “accelerate our planned development programme for the second half of 2026,” Nick Pople, the firm’s managing director, Northern Lithium told CityAM.
“We’ve also begun assessing funding requirements and options beyond 2026, with an expected financing package of c. £30 million needed later this year to construct the plant required to deliver first commercial production at Ludwell Farm,” Pople said.
Northern Lithium was founded in 2017 by the late Richard Morecombe, formerly president of Panmure Liberum, and has received backing from City grandees like Rich Ricci and Martin Gilbert.
It is one of a handful of firms looking to produce lithium domestically, helping to reduce the UK’s reliance on overseas imports.
Lithium demand on the rise
Lithium will be one of the most highly sought after commodities of the 21st century, helping to power everything from electric vehicles, to laptops and smartphones. The government estimates that yearly UK demand for lithium will increase by 1,100 per cent before 2035.
However, the UK currently imports all of its lithium from overseas. In its Critical Minerals Strategy, published in November, the government set a target to produce 50,000 tonnes of lithium domestically.
Last year, Northern Lithium said tests on its site had shown there were “commercially viable” amounts of lithium in the area.
The firm is aiming to commence commercial production at its site in Ludwell Farm in 2027. The site’s initial capacity will be around 500 tonnes per year, ramping up to 20,000+ tonnes per year by 2035. The company estimates it will be able to supply 25 per cent of domestic demand.
Pople said the recent recovery in lithium prices, support from the government through the critical minerals strategy, and the “positive progress” being made on the current fundraise put the firm in a good place.
“We are highly confident that we will attract the equity investment we need to deliver first commercial production by the end of 2027 and scale up after that,” he said.