GEL Achieves Europe-First Technical-Grade Lithium Milestone

Geothermal Engineering Ltd (GEL) has reached a significant milestone in the UK’s emerging lithium industry by successfully producing high-purity lithium carbonate from deep geothermal brine. Independent testing confirmed that GEL’s lithium carbonate exceeds the 99.3% purity threshold required for technical-grade material, marking what the company describes as a European first at commercial scale.

The achievement is important because technical-grade lithium carbonate can be sold directly to customers without requiring additional refining to meet the relevant purity specification. This gives GEL a potential direct route to market while demonstrating the effectiveness of its proprietary lithium extraction and processing technology.

The development also supports the UK Government’s ambition to strengthen domestic critical-mineral supply chains. The government has set a target of sourcing 10% of the country’s critical mineral requirements from domestic production by 2035, including at least 50,000 tonnes of lithium carbonate. GEL intends to make a substantial contribution to this objective as it expands its production footprint.

At the United Downs site, GEL expects production to reach approximately 2,000 tonnes per year by 2029. With additional sites planned across the UK, the company forecasts total production capacity of around 30,000 tonnes annually by 2033. If achieved, this output could represent more than 60% of the UK’s 50,000-tonne domestic lithium carbonate target.

GEL’s technology also offers an environmental advantage. The company combines lithium production with geothermal electricity generation, creating an integrated approach that can reduce the environmental footprint associated with conventional lithium production. Recent benchmarking studies have ranked lithium produced using GEL’s technology among the world’s most sustainable sources.

Julian Hetherington MBE, Director of Automotive Transformation at the Advanced Propulsion Centre, said the United Downs project demonstrates the UK’s potential to establish a sustainable domestic lithium carbonate supply chain. The project received £1.8 million in support through the Automotive Transformation Fund’s DRIVE35 programme.

GEL CEO Dr Ryan Law described the achievement as a validation of the company’s technology and an important step toward large-scale UK lithium production. The milestone, he said, demonstrates the potential to produce a high-quality, marketable lithium product domestically while supporting a more secure and sustainable supply of this critical battery material.

Technical-grade lithium carbonate is internationally traded, including through markets such as the Shanghai Metals Market. The reference price stood at approximately $22,000 per tonne as of August 20, 2026. GEL began production in February 2026, with the current plant having a capacity of approximately 100 tonnes per year. The company aims to expand this platform and establish a stronger position in Europe’s developing lithium market.

Chemical Commodity Price Impact

The news is bullish for lithium carbonate supply but mildly bearish for regional prices over the longer term. GEL’s successful production of technical-grade lithium carbonate demonstrates that UK geothermal resources can provide battery-material feedstock without additional refining. As production scales from 100 tonnes annually toward 2,000 tonnes by 2029 and potentially 30,000 tonnes by 2033, additional European supply could reduce dependence on imports and improve regional availability. This may place moderate downward pressure on lithium carbonate prices if capacity expands as planned. However, the initial volumes remain small relative to global demand, so the near-term impact on lithium carbonate prices should be limited. Other Chemanalyst-tracked chemical commodities are likely to see minimal direct price impact.