Cornish lithium firm warns it could go bust without new funding
A leading light in the green energy sector has warned it could go out of business if it fails to raise £10m by the end of July.
Cornish Lithium sent the message to investors in its annual report.
The company said it needs the funding to “ensure the business can meet its financial commitments”.
The company was forecasting the start of production from 2026 but the company is desperate to raise cash.
Cornish Lithium posted a £6.6m loss in 2022 but is revealed that even if secures the £10m funding it will still need medium to long-term support to avoid mitigations which will lead to reduced spending.
Chairman Ian Cockerill has blamed the lack of government subsidy support for the company’s predicament.
He accused the government of failing to match the investment on offer in the US and EU.
A statement in the annual accounts said: “All of the scenarios modelled require the receipt of further funding by July 2023.
“Without this, a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.”
Cornish Lithium is one of the UK’s few firms looking to produce the element which is a vital element needed to produce electric car batteries.
Mr Cockerill said: “The UK is currently being left behind in this global race to secure the industries that will drive the energy transition.
“More support is needed to counteract the effect of the US and EU subsidies that are being offered to help attract the investment required in the UK.”
