The Prime Minister has launched the UK’s new Critical Minerals Strategy.
The strategy, backed by up to £50 million new funding, will aim to reduce the UK’s overreliance on foreign imports of critical minerals by ramping up domestic production. The UK Government says this will protect the UK from shortages in global shocks like natural disasters or war.
China currently dominates global critical mineral production and supply chains, for example controlling 70% and 90% of rare earth mining and refining respectively, making Britain vulnerable from overreliance on a select few exporters for its supplies of materials needed to power things like electric vehicles and wind turbines, the UK Government said.
But in the UK alone, demand for copper – used for electric plugs in homes and the brakes in cars – is set to almost double by 2035, while demand for lithium – vital for powering laptops and electric cars – will increase by 1,100%.
The UK Government says its action will ensure no more than 60% of the UK’s supply of any one critical mineral is imported from any one country by 2035.
The strategy will see the UK Government work with the sector to harness the UK’s world leading capability with Europe’s largest lithium deposit in Cornwall, one of the largest sources of tungsten globally, one of the largest nickel refineries in Europe in Clydach, Swansea, and the only Western source of rare earth alloys used in the magnets found in wind turbines and F-35 fighter jets, amongst others.
It will help the UK meet 10% of its demand through domestic production, with 20% to come from recycling of products to recover minerals.
This is the first time the UK has set out clear, tangible ambitions to grow domestic production and recycling, while reducing reliance on third countries, the UK Government said.
Prime Minister Keir Starmer said:
“Critical minerals are the backbone of modern life and our national security – powering everything from smartphones and fighter jets to electric vehicles and wind turbines.
“For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks.
“That is why we are taking decisive action to change that, boosting domestic production, ramping up recycling, and backing British businesses with the investment they need to compete on the international stage and drive down the cost of living for people at home.”
Industry Minister Chris McDonald said:
“We need critical minerals for everything – from the phones we use to the cars we drive – and for too long we’ve been dependent on a select few sources for our supplies of them, putting our national security at risk.
“Now, we’re taking the bold action needed to shore up our supply chains, ramp up domestic production and back businesses with the investment they need to create new jobs and drive growth, as part of our Plan for Change.”
The new strategy also has the ambition to produce at least 50,000 tonnes of lithium in the UK in the next decade – more than the weight of the Titanic (around 46,000 tonnes).
In September the National Wealth Fund announced a £31 million commitment to Cornish Lithium to advance the Trelavour Lithium Project towards a construction decision and the Cross Lanes Geothermal Lithium Project to commercial drilling.
Businesses’ industrial electricity costs will also be cut through the British Industrial Competitiveness Scheme (BICS), encouraging firms to grow and drive new investment into the UK. The UK Government will launch a consultation on eligibility for BICS shortly.
To achieve the strategy’s aims the UK Government said it would also support permitting for innovative projects in domestic production and recycling through the Environment Agency’s priority tracked service, and work with Skills England and the Department for Work and Pensions to support the skills required in the UK to meet the Strategy’s goals.
The critical minerals sector contributes £1.79 billion to the UK economy and directly supports over 50,000 jobs, while there are currently more than 50 critical mineral projects based in the UK aimed at extracting and refining these materials.
Jeff Townsend, Critical Minerals Association, said:
“We welcome the Government’s renewed commitment to securing the critical minerals that underpin the UK’s Industrial Strategy and future economic resilience. This strategy marks an important and timely step forward – one that recognises that modern industries, from advanced manufacturing to defence, clean energy, and high-tech innovation, are only as strong as the minerals and materials on which they depend.
“We recognise the growth and investment opportunities that this strategy will unlock, not only for Britain’s critical minerals companies but also for the hundreds of thousands of jobs and sectors that rely on them. If fully supported and delivered with intent, this strategy can secure the UK’s position as a trusted global partner and a leader in the technologies that will define the coming decades.
“The Critical Minerals Association stands ready to support its implementation and help ensure its success.”
To boost resilience and national security, the UK Government will look at stockpiling, including through defence procurement, to shore up the UK’s critical minerals supplies for UK defence – in line with their widespread uses in advanced military hardware.
The UK is a member of the NATO Critical Mineral Stockpiling Project which is considering potential options for establishing, procuring and maintaining stockpiles of critical minerals, raw materials, components such as magnets and battery cells and recycled materials.
The UK Government said it would also continue to pursue partnerships with “resource-rich and like-minded countries” around the world to diversify the UK’s supply chains for critical minerals, using Britain’s world-leading credentials in academia, R&D, finance and trade to boost growth opportunities for UK businesses at home and abroad.
