The UK government has revealed a new strategy for critical minerals according to official document from the government. The strategy is expected to reduce the country’s heavy reliance on foreign suppliers, especially from China, for essential minerals including rare earth metals , lithium, nickel, and tungsten, crucial components needed to build all kinds of tech, from military hardware to wind turbines and electric vehicles. What’s the UK’s plan to deal with rare earths dependency The announcement was made on Saturday, November 22. The strategy, backed by up to £50 million in new funding, will ensure no more than 60% of the UK’s supply of any one critical mineral is sourced from a single country by 2035. As for where the alternatives will come from, the government says 10% will come from domestic demand and 20% from recycling. British Prime Minister Keir Starmer, while on the matter, called critical minerals “the backbone of modern life and our national security,” and argued that directing focus to domestic production and recycling would help protect the economy and support efforts to lower living costs. It is an ambitious strategy since, as things stand, the UK produces only 6% of its critical mineral needs domestically. This new strategy, which could change, is putting particular focus on lithium, which it aims to produce at least 50,000 tons of domestically by 2035, then nickel, tungsten, and rare earths. The strategy highlights Britain’s current predicament, which is an urgent need for a secure, long-term supply of critical minerals, including copper, lithium, and nickel, which are essential in the manufacture of a range of technologies like smartphones and fighter jets. These imports are also increasingly crucial for building data centers that power artificial intelligence. Meanwhile, the country’s need for essential materials continues to climb sharply, with copper consumption projected to nearly double and lithium demand expected to surge by 1,100% by 2035, according to Britain’s government. The strategy will also see up to £50 million invested into UK businesses via the boosting of critical minerals projects and turbocharging domestic production and processing, helping the UK move ahead in the global race. Why the strategy is being proposed at this time The strategy highlights China’s vice-like grip on critical mineral supplies, which has left the sector vulnerable to price swings, geopolitical strains and sudden disruptions. Britain has acknowledged that China accounts for about 70% of rare earth mining and 90% of refining. That dominance is why the UK is trying to create countermeasures, as China continues to wield its position as leverage in negotiations. 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.” Since the strategy was announced, many industry leaders have weighed in with their opinions, and the general response has been one of warm welcome. Ionic Rare Earths Limited Managing Director, Tim Harrison, called the strategy a strong message from the government about the importance of critical minerals to the nation’s growth, prosperity, and 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,” Harrison said. Vale Base Metals, Darren Poland, General Manager of UK Operations, also acknowledged the importance of critical minerals while expressing support for the strategy as it ensures 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 focuses on midstream processing and the circular economy, where the UK has significant strengths, particularly in the rare earth value chain. ” Overall, the strategy is expected to push the UK to higher levels and end the overdependence on countries like China; however, it remains to be seen if the government will be able to pull it off. Get up to $30,050 in trading rewards when you join Bybit today
