* Strongbow bought rights to South Crofty in Cornwall in 2016
* Cornish Lithium says new technology makes lithium possible
* Lithium needed for batteries, electric vehicles (Adds detail, quotes)
LONDON, Jan 19 (Reuters) - British mining company Cornish lithium said on Thursday it had entered a definitive mineral rights agreement with Canada's Strongbow Exploration SBW.V to explore for lithium in Cornwall, southwest England, stoking hopes for a British mining revival.
Cornwall historically was a mining hub and the British government is keen to support a revival of the mining industry as it seeks to bolster the economy against the shocks of leaving the European Union.
Cornish Lithium said new technology offered the potential to extract lithium from underground hot springs and to supply products to the rapidly growing battery market for electric cars and for power storage.
"We believe the potential benefits of developing a lithium industry in Cornwall will be significant for the county and for the UK as a whole," Cornish Lithium CEO Jeremy Wrathall, a mining engineer who also works at Investec, said in a statement.
Canadian mineral company Strongbow Exploration last year bought the South Crofty mine, which was the last tin mine to close in 1998 in Cornwall, southwest England.
Previous attempts to revive the tin mine faltered because of challenging economics.