From smartphones to fridges: UK to end overreliance on imports of critical minerals
The Government has launched the UK’s new Critical Minerals Strategy.
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New Critical Minerals Strategy sets out the ambition to produce 10% of UK’s mineral needs domestically and 20% through recycling by 2035.
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At least 50,000 tonnes of lithium to be produced in the UK by 2035 – more than the weight of the Titanic.
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Up to £50 million fund backs UK businesses by boosting critical minerals projects and turbocharging domestic production and processing, helping UK move ahead in the global race.
Britain’s supplies of the vital materials powering everyday essentials like smartphones and fridges are set to be shored up as the Prime Minister launches the UK’s new Critical Minerals Strategy today [22 November].
The strategy, backed by up to £50 million new funding, will aim to reduce the UK’s overreliance on foreign imports of critical minerals essential for everyday life by ramping up domestic production, protecting the UK from shortages in global shocks like natural disasters or war.
The move comes as the Government doubles down on shoring up supply chains as part of its push on national security.
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.
But in the UK alone, demand for copper – used for electric plugs in our homes and the brakes in our cars – is set to almost double by 2035, while demand for lithium – vital for powering our laptops and electric cars – will increase by 1,100%.
That is why the Government is taking decisive action to 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 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 our reliance on third countries.
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).
The Government will deliver on the strategy by supporting UK businesses to grow and scale up their production with up to £50 million funding to boost critical minerals projects, as well as through our strong public finance offer, including investments via the National Wealth Fund and UK Export Finance.
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 slashed through the government’s British Industrial Competitiveness Scheme (BICS), encouraging firms to grow and drive new investment into the UK. The Government will launch a consultation on eligibility for BICS shortly.
To achieve the strategy’s bold aims the Government will 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.
For the first time, the new Critical Minerals Strategy is also laser-focused on growing the economy in line with the Government’s wider Plan for Growth, with critical minerals earmarked as a foundational sector to the modern Industrial Strategy.
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 vital materials.
Key regions including across North East England, in County Durham and Teesside, and the South West in Devon and Cornwall, have vital resources.
Jamie Airnes, CEO of Cornish Lithium, said:
We welcome the publication of the UK Government’s Critical Minerals Strategy that provides a clear strategic framework within which industrial scale UK critical minerals production can become a reality. The strategy highlights the need to accelerate domestic capability, unlock investment, and build strategic partnerships – all of which are essential to delivering lithium production at scale.
Securing a domestic supply of critical minerals, including lithium, will create high-quality jobs, deliver supply chain resilience and support key manufacturing sectors across the UK. We look forward to working closely with Government and industry partners to turn this strategy into action.
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.
Tom McCulley, CEO of Anglo American’s Crop Nutrients business, said:
Metals and minerals are fundamental to the energy transition, improving living standards, and food security. It is important for the UK to have a clear strategy, both in terms of the supply of critical metals and minerals, as well as the opportunities that the UK’s own resource endowments offer for economic growth.
With London at the centre of global mining finance, the UK has an opportunity to drive investment and growth through partnerships along the value chain and through the emergence of a modern mining industry in the UK itself.
The new strategy will commit up to £50 million to support projects across the country, including by expanding the research and innovation which goes into extracting and refining critical minerals, and helping businesses to commercialise and scale up their projects.
Government has already backed critical minerals businesses across the UK with over £165 million, and together with support from the National Wealth Fund, UK Export Finance and other public finance streams, this fund will drive growth in the sector across the country and help the UK move ahead in the global race to secure supplies of these minerals.
To boost resilience and national security, the 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 Government will 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.
The new Strategy will be vital to delivering on the aims of the UK’s modern Industrial Strategy, with all the UK’s leading sectors which the Industrial Strategy backs – from advanced manufacturing to clean energies – dependent on steady supplies of critical minerals, including plane engines and semiconductors.
The benefits will also be reaped across the country, with Scotland placing critical minerals resilience at the forefront of its commitment to meet net zero and create a more circular economy, while Wales has maximised the geology and skills of its workforce to retain nickel and titanium product manufacturing to this day.
And in Northern Ireland, pioneering research from Queens University Belfast and work from firms like Ionic Technologies is finding new ways of recycling permanent magnets, which are used in applications from wind turbines to vehicles.
ENDS
Notes to editors:
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Read the UK’s new Critical Minerals Strategy: https://www.gov.uk/government/publications/uk-critical-minerals-strategy
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The UK currently produces 6% of the UK’s critical minerals needs domestically.
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Please see below for further reaction from industry welcoming the launch of the strategy:
Ionic Rare Earths Limited Managing Director, Tim Harrison, said:
With the release of the Critical Minerals Strategy, the Government is sending a strong message about the importance of critical minerals to the nation’s growth, prosperity and security.
We welcome the Strategy’s focus on domestic capability and the recognition of Belfast, where Ionic Technologies operates, as part of a critical minerals cluster. Our patented magnet recycling and Rare Earth Element separation technology is increasingly important in protecting UK rare earth supply chain security.
There has never been a more important time for the Government to back businesses that will have an impact on critical minerals supply chains.
Vale Base Metals, Darren Poland, General Manager of UK Operations:
As a vital part of the UK’s midstream through our Clydach Nickel Refinery in Wales, we recognise that critical minerals are the foundation of modern industry and trade.
We welcome the UK’s drive to strengthen its domestic ecosystem and its commitment to partnering with global suppliers to secure critical minerals like nickel for future growth.
Professor Allan Walton, Co-Director of the Birmingham Centre for Strategic Elements and Critical Materials (BCSECM), University of Birmingham and Director of Hypromag Ltd, said:
We are delighted to see that the new Critical Minerals Strategy focusses on midstream processing and the circular economy where the UK has significant strengths particularly in the rare earth value chain.
The University of Birmingham’s Centre for Strategic Elements and Critical Materials and Hypromag Ltd have recently commenced rare earth magnet manufacturing in the UK for the first time in over 25 years from recycled end-of-life products.
This process means it is possible to manufacture new magnets with an extremely low environmental footprint and at lower cost compared to other recycling options. Our activities within magnets and other critical materials perfectly align with the new focus of the Critical Minerals Strategy.