NORTHERN LITHIUM'S 2026 DEVELOPMENT PLANS FURTHER BOOSTED BY £0.6 MILLION UK GOVERNMENT GRANT FUNDING

DURHAM, England, April 16, 2026 /PRNewswire/ -- Northern Lithium has been announced as one of the award winners of the UK Government's Scale-up Feasibility Studies competition, attracting £0.6 million grant funding for its UK Lithium FEED feasibility study. The study will deliver the critical next step towards establishing Northern Lithium's first UK commercial-scale lithium-from-brines production facility at Ludwell Farm, County Durham with first commercial production targeted from 2028.

The £0.6 million competition funding award is part of the UK Government's £4 billion DRIVE35 programme, delivered by the Department for Business and Trade in partnership with the @Advanced Propulsion Centre UK ("APC") and @Innovate UK.

The award comes in addition to £2.0 million of new equity commitments received by Northern Lithium, largely from new investors, in Q4 2025 to cover the company's H1 2026 work programme. In January 2026 the company decided to increase the round, by up to an additional £3.0 million, taking the overall equity raised to £5.0 million (excluding the grant funding). This reflects both the level of investor interest received and Northern Lithium's desire to accelerate part of its planned H2 2026 development programme.

Northern Lithium's feasibility study will generate a full Front-End Engineering Design (FEED) and bankable business case, enabling Northern Lithium (NLi) to secure the larger investment required to manufacture, construct and commission its first production unit. Through phased expansion at its initial site at Ludwell Farm and subsequent development across its 240 km² Northern Pennine Orefield project area in the, Northern Lithium aims to reach production of over 20,000 tonnes per annum (tpa) Lithium Carbonate Equivalent (LCE)by 2035. This would position the company as a strategic domestic supplier of a critical raw material essential for UK industrial competitiveness, the energy transition, and Net Zero delivery.

The project aligns directly with the UK Automotive Council's 2024 Roadmap priorities of building resilient supply chains and onshoring critical minerals, as well as the UK's Critical Minerals Strategy and Net Zero Strategy.

Achieving over 20,000 tpa LCE (~25% of forecast UK demand) by 2035, the company anticipates creating create upwards of 100 high-value jobs directly linked to its production facilities, while catalysing wider regional employment and helping safeguard the 270,000 UK EV ecosystem jobs expected by 2035.

Nick Pople, Managing Director of Northern Lithium, 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."

Ian Constance, Chief Executive of the Advanced Propulsion Centre commented: "The projects announced under this latest round of funding demonstrate the UK's determination to lead the shift to zero-emission mobility. By facilitating the UK Government's DRIVE35 grants, we are turning world-class innovation into industrial capability. With our partners in DBT and Innovate UK, we are backing manufacturers, empowering SMEs, and strengthening the UK's sovereign supply chain. This multi-million-pound support package is more than an investment in technology; it is an investment in the people, skills, and companies that will define the future of clean transport. Together, we are building the foundations of a competitive, resilient, and sustainable automotive industry."

For further information on Northern Lithium, please contact:

Nick Pople, Managing Director, Northern Lithium
e: [e-mail]
t: [phone]

Richard Barton, RB Advisors
e: [e-mail]
t: [phone]

Logo - https://mma.prnewswire.com/media/2958318/Northern_Lithium_Logo.jpg

View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/northern-lithiums-2026-development-plans-further-boosted-by-0-6-million-uk-government-grant-funding-302744785.html