Funding for UK critical minerals projects
Guidance on the 3 pillars that make up the Critical Minerals Programme.
Overview of the 3 pillars of the Critical Minerals Programme
Critical minerals are essential to the UK’s economy, national security, and clean energy transition. The Critical Minerals Programme – an important part of the government’s Critical Minerals Strategy – will:
- strengthen UK supply chain resilience for Industrial Strategy growth-driving (IS-8) sectors
- optimise domestic production
- accelerate commercialisation of innovation, creating high-value jobs and attracting investment right across the UK
These objectives are grounded in the government’s Plan for Change and align directly with 2 of its central missions:
- kickstarting economic growth
- making Britain a clean energy superpower
Critical Minerals Programme introduction
In the UK alone, we anticipate that between now and 2035 yearly demand for copper will almost double, while demand for lithium will increase by 1,100%. As economies across the globe undertake the green transition, the demand for these minerals will only increase as their energy sources and transport systems become increasingly reliant on low-carbon technology.
That is why, in 2025, the government published Vision 2035: Critical Minerals Strategy, to secure the critical minerals needed by the Industrial Strategy’s growth sectors. For the first time, the UK set clear ambitions for defining success by 2035, including:
- at least 10% of annual UK demand for critical minerals met through domestic production
- 20% through recycling of products to recover critical minerals
- no more than 60% of UK’s annual demand for critical minerals in the aggregate is supplied by any one country
To help deliver Vision 2035, the strategy announced that funding of £50 million would be made available by the Department for Business and Trade (DBT) to support critical minerals projects. This programme of grant funding and investment will accelerate the UK’s capabilities in critical minerals, supporting UK economic growth, strategic industrial resilience and the clean energy transition.
Programme scope
Government funding worth £50 million will be invested to support critical minerals projects in the UK, with £45 million of this available as grant funding to 2030.
To support delivery of the UK’s Critical Minerals Strategy, the Critical Minerals Programme is composed of 3 distinct pillars:
- the Magnet Hub
- the Critical Minerals Accelerator
- the Demand Aggregation Platform
This funding forms part of the wider funding landscape and enabling policy environment, with government setting the conditions for success through competitive energy costs, streamlined planning and permitting, access to finance and targeted international collaboration as set out in the strategy.
In line with our commitment in the strategy, we are working with the UK public finance institutions to identify ways in which critical minerals projects with high potential and strategic value can be supported more effectively by government in a more coherent way.
Building on the success of Innovate UK’s programme developing resilient UK-based supply chains for rare earth elements, this new programme brings a bespoke critical minerals focus that is directly aligned to the 2025 Critical Minerals Strategy. The programme complements existing funding, including DRIVE35’s support of zero-emission vehicle manufacturing and the National Wealth Fund.
Magnet Hub
Grant funding worth £20 million will be made available to develop a world-class national facility to develop new and innovative manufacturing capability for rare earth permanent magnets in the UK. Rare earth permanent magnets are crucial to the UK and to all advanced economies, from driving our wind turbines to the electric vehicles that will help power the green transition.
The Magnet Hub will serve as a sandpit facility to innovate and scale processes for rare earth element (REE) recycling and magnet manufacturing, providing a platform for companies to scale production and develop partnerships with equipment manufacturers. It will also be a world-leading skills and training centre that upskills students and workers, supporting business growth and addressing crucial skills gaps.
The funding will be awarded through a competitive, 2-stage application process to a single, lead applicant. A 2-week expression of interest process will open in the week commencing 29 June 2026. This will be followed by a full application stage over the summer, and the successful applicant is expected to be awarded funding in autumn 2026. The delivery window will run to March 2030.
Critical Minerals Accelerator
This pillar will support innovation, scale up new projects and processes and ultimately support commercialisation of domestic critical minerals capabilities, with £25 million in grant funding available. It will span extraction, processing and recycling to support projects within the UK for minerals on the 2024 UK Critical Minerals List as well as growth minerals essential to the IS-8 and heavy industry by 2035. It will focus on companies and projects close to commercialisation, at the stage of pilot or demonstration plant, or first-of-a-kind industrial-scale facility, that face difficulties in accessing finance, helping to de-risk projects to crowd in private investment. The scheme will target investment at those companies which contribute most to UK economic growth and resilience, demonstrating robust business cases.
The funding will be awarded to multiple organisations and projects through a 2-stage application process. This will start with the first application window expected to open in July 2026, followed by an interview round for applicants who progress. A further application round is expected to follow in 2027. The delivery window will run to March 2030.
Demand Aggregation Platform
As outlined in the strategy, the government committed to explore:
- a platform to consolidate and clarify UK industry critical mineral demand
- facilitate industry-led strategic offtake agreements
- help industry and government to make better use of UK public finance to catalyse private investment
We will also explore opportunities to utilise the platform to collaborate with likeminded international partners with similar initiatives. This platform will be designed by a supplier with the relevant knowledge and skills to deliver this project.
As a next step, the government will carry out pre-market engagement over the summer to understand possible supplier solutions and to inform the tender notice, which we expect to publish in autumn 2026.