What's happened
The UK government announced a new critical minerals strategy, backed by £50m, aiming to secure domestic supplies of lithium, nickel, tungsten, and rare earths by 2035. The plan includes increasing domestic extraction, recycling, and diversifying supply sources to reduce reliance on China and strengthen national security.
What's behind the headline?
The UK’s critical minerals strategy signifies a strategic shift towards reducing dependency on China, which currently dominates the sector. By investing in domestic mining and recycling, the UK aims to meet surging demand—lithium demand alone is expected to increase by 1,100% by 2035. The focus on diversifying supply sources and fostering international alliances reflects a broader geopolitical effort to secure supply chains. However, the strategy faces significant challenges, including the lengthy timeline for developing new mines and refining capacity, and competition from the US, which benefits from substantial subsidies. The emphasis on recycling indicates a recognition that sustainable, circular approaches will be vital for long-term supply resilience. Overall, this plan will likely accelerate UK’s efforts to become a key player in the global critical minerals market, but success depends on overcoming technical, financial, and geopolitical hurdles.
What the papers say
The Reuters article highlights the UK government’s funding and international collaborations, emphasizing the near-term prospects of lithium refineries in Teesside and Cornwall’s reserves. The Guardian articles provide context on the broader geopolitical landscape, including EU and US strategies, and detail the challenges of developing domestic supply chains. The contrasting focus on government funding and geopolitical tensions underscores the complexity of securing critical minerals in a competitive global environment. Reuters emphasizes the immediate steps and industry developments, while The Guardian discusses the strategic importance and long-term implications, including the influence of China’s dominance and the need for diversification.
How we got here
The strategy responds to the UK's growing demand for critical minerals used in electric vehicles, smartphones, and AI infrastructure. It follows concerns over China's dominance, which controls about 70% of rare earth mining and 90% of refining. The UK aims to boost local production, recycling, and international partnerships, including with Australia and Saudi Arabia, to build resilient supply chains amid geopolitical tensions.
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Common question
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What is the UK’s plan for critical minerals like lithium and rare earths?
The UK has announced a new critical minerals strategy aimed at boosting domestic production and reducing reliance on foreign sources, especially China. This move raises questions about how the UK plans to secure essential materials like lithium, nickel, tungsten, and rare earths, which are vital for electric vehicles, electronics, and renewable energy. Below, we explore the key aspects of this strategy and its broader implications.
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.
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Cornwall is a ceremonial county in South West England, bordered to the north and west by the Celtic Sea, to the south by the English Channel, and to the east by Devon, the River Tamar forming the border between them.