Northern Lithium has secured £600,000 ($812,382) in funding through the UK Government's Scale-up Feasibility Studies competition to advance its 2026 development plans.

This grant will support the company's UK Lithium front-end engineering design (FEED) feasibility study, part of efforts to establish a commercial-scale lithium-from-brines plant at Ludwell Farm, County Durham.

The company plans to begin commercial production from 2028.

The funding is part of the UK Government’s DRIVE35 programme, administered by the Department for Business and Trade, in collaboration with the Advanced Propulsion Centre UK and Innovate UK.

This funding complements Northern Lithium's recent equity commitments of £2m, primarily from new investors, to support the company's work agenda for the first half of 2026.

In January this year, the company decided to increase its funding by an additional £3m, pushing total equity raised to £5m, excluding the grant.

Northern Lithium's feasibility study will develop a comprehensive FEED and create a viable business case.

This will help secure significant investment for manufacturing and commissioning its initial production unit.

The company plans to expand its operations at Ludwell Farm, with further development across the 240km² Northern Pennine Orefield project.

By achieving a production rate of more than 20,000 tonnes per annum (tpa) of lithium carbonate equivalent by 2035, Northern Lithium aims to become a key domestic supplier of essential raw materials for the UK's industrial needs, energy transition and net-zero objectives.

The project aligns with the UK Automotive Council's 2024 Roadmap, focusing on strengthening supply chains and sourcing critical minerals domestically, in line with the UK's Critical Minerals and Net Zero strategies.

The company plans to create more than 100 jobs within its facilities, enhance regional employment and contribute to safeguarding 270,000 jobs within the UK’s electric vehicle sector expected by 2035.

Northern Lithium managing director Nick Pople said: “Northern Lithium's targeted lithium production by 2035 will provide a significant boost to the UK Government's goal to secure at least 50% of UK lithium requirements from domestic sources by that date and help address the UK's current 100% import-dependency.

“We are grateful for the support of DRIVE35, APC, Innovate UK and all our investors, enabling Northern Lithium to unlock the next scale-up step towards commercialisation, and anchor a sustainable UK lithium industry.”