Britain plans to lift the share of critical minerals it gets from domestic mines and recycling to 30% by 2035, up from about 6% today, under a new 10-year strategy that mirrors US, Canadian and EU efforts to cut dependence on China-dominated supply chains.
The Critical Minerals Strategy, published Saturday, sets binding targets to meet 10% of demand from domestic production, 20% from recycling and to cap reliance on any single foreign supplier at 60% for each mineral. The move puts the UK more firmly in the Western camp seeking to reduce exposure to China and, for some metals, Russia.
“Critical minerals are the backbone of modern life and our national security,” Prime Minister Keir Starmer said in a press release, arguing the plan will cut exposure to “a handful of overseas suppliers” and help shield the economy from future supply shocks.
The plan is backed by up to £50 million in fresh funding and also targets production of at least 50,000 tonnes of lithium in the UK by 2035. Today, only about 6% of the overall critical mineral needs are sourced domestically. Demand for copper is projected to nearly double and lithium demand to jump about 1,100% by 2035 as electric vehicles, wind power and AI data centres expand, the government said.
The strategy leans on the British Geological Survey’s 2024 criticality assessment, which expanded the UK’s critical minerals list to 34 from 18 minerals, adding nickel, iron, aluminum, germanium and chromium while dropping palladium. That brings Britain closer to Canada’s and the European Union’s 34-mineral lists, though still short of the United States’ 50-item roster as major economies race to secure supplies for the energy transition and defence.
London is betting on a handful of domestic hubs to deliver the plan’s goals. The strategy highlights lithium resources in Cornwall – among Europe’s largest – , tungsten deposits in Devon, the Clydach nickel refinery in Wales and Less Common Metals’ plant at Ellesmere Port, one of the West’s few sources of rare earth alloys for permanent magnets used in wind turbines and F-35 fighter jets.
London is betting on a handful of domestic hubs to deliver the plan’s goals. The strategy highlights lithium resources in Cornwall – among Europe’s largest – , tungsten deposits in Devon, the Clydach nickel refinery in Wales and Less Common Metals’ plant at Ellesmere Port, one of the West’s few sources of rare earth alloys for permanent magnets used in wind turbines and F-35 fighter jets.
Securing domestic lithium will create high-quality jobs and bolster supply chain resilience for UK manufacturers, Cornish Lithium CEO Jamie Airnes said, calling the government’s commitment to accelerating domestic capability, unlocking investment and building strategic partnerships “essential” for delivering lithium production at scale.
Cornish Lithium recently secured £31 million from the National Wealth Fund for its Trelavour project and geothermal lithium venture at Cross Lanes, part of plans to build the UK’s first end-to-end battery-grade lithium project.
Tin, critical to making electronics and EVs, is another beneficiary. Cornish Metals (LSE, TSXV: CUSN) CEO Don Turvey said the critical minerals designation “reflects [tin’s] vital role” in clean energy supply chains and pointed to a £28.6-million National Wealth Fund investment in the company’s South Crofty mine, which aims to create more than 300 direct jobs as it revives Cornwall’s historic tin industry.
Tungsten West’s (LSE: TUN) Hemerdon project near Plymouth, which hosts one of the world’s largest tungsten deposits, is positioning itself as an early test of the new policy.
“Our aim is to bring the project into production in late 2026 and we look to the government to rapidly apply the strategy in a way to deliver real and tangible support,” CEO Jeffery Court said in a release, calling Hemerdon “a very timely opportunity to demonstrate this strategy in action.”
Beyond mining, the plan leans heavily on midstream processing and recycling, areas where the UK has made headway. Ionic Rare Earths (ASX: IXR) subsidiary Ionic Technologies in Belfast and magnet recycler Hypromag, backed by the University of Birmingham, are developing rare earth magnet recycling with a much smaller environmental footprint than primary production.
“There has never been a more important time for the government to back businesses that will have an impact on critical minerals supply chains,” Ionic CEO Tim Harrison said in a separate release.
Western peers
Compared with North American peers, Britain’s critical minerals strategy is targeted but modest in scale. The UK’s new funding – up to £50 million, on top of earlier support of more than £165 million and financing channels via the National Wealth Fund and UK Export Finance – is designed to de-risk specific projects and midstream investments rather than overhaul the sector.
Still, industry players say a clear strategy is as important as the headline figure. Jeff Townsend of the Critical Minerals Association said the plan “marks an important and timely step forward” and, if delivered with intent, could secure the UK’s position as “a trusted global partner” in next-generation technologies.
By contrast, the US’ has tied its long list to subsidies through the Inflation Reduction Act, CHIPS Act, Defense Production Act tools and new Department of Energy funding calls totalling nearly $1 billion for critical mineral mining, processing and manufacturing.
The Pentagon has also committed about $540 million to rare earth and other projects and is building a stockpile to counter China’s market dominance.
Canada’s Critical Minerals Strategy, launched in 2022, is backed by roughly C$3.8 billion in federal support, including a C$1.5 billion infrastructure fund, and focuses on six priority minerals – lithium, graphite, nickel, cobalt, copper and rare earth elements – to build full domestic value chains from mines to EV assembly and recycling.
Security, stockpiles
Like its allies, the UK is responding to China’s grip on key segments of the supply chain. Beijing accounts for about 70% of rare earth mining and 90% of refining, leaving import-dependent economies exposed to export controls and price shocks.
The strategy signals tougher thinking on resilience, including exploring stockpiles of critical minerals, magnets and battery cells, especially for defence, and working through Nato’s critical mineral stockpiling project. It also promises faster permitting for mining and recycling projects via the Environment Agency’s priority track and lower industrial power prices through the forthcoming British Industrial Competitiveness Scheme.
At home, the government says the critical minerals sector already contributes about £1.8 billion to the economy and directly supports more than 50,000 jobs, with more than 50 projects under way from Cornwall and Devon to Teesside and Belfast.
Walk the talk
Analysts note that while the UK’s targets echo the EU’s Critical Raw Materials Act and North American strategies, the country lacks their fiscal strength and resource endowment. The British Critical Minerals Intelligence Centre has warned that expanding domestic mining, midstream processing and recycling will be essential to avoid bottlenecks, even with more imports from partners such as Saudi Arabia and Australia.
The 2024 criticality assessment also left copper off the UK critical list despite its central role in electrification, arguing that supply risks do not yet meet the threshold, a stance that differs from Canada and the EU.
And while the strategy nods to environmental safeguards and skills, communities in mining regions will weigh new projects against landscape, water and cultural impacts.
For miners and processors, however, the message is that the UK finally wants more than just London’s role as a financing hub.
Anglo American (LSE: AAL) executive Tom McCulley said metals and minerals are “fundamental to the energy transition” and London’s position in mining finance gives Britain “an opportunity to drive investment and growth” across the value chain.
