UK seeks to produce 10% of critical minerals needs domestically by 2035

The UK government has launched a Critical Minerals Strategy to produce 10% of the country’s energy transition minerals domestically and 20% through recycling by 2035.

The strategy, meant to reduce the UK’s reliance on China for critical minerals, is backed by up to £50 million new funding, as well as a new guarantee by UK Export Finance for domestic businesses that supply critical mineral products to UK exporters.

Demand for copper is set to almost double in the next 10 years as the UK accelerates its energy transition and electrification, while demand for lithium – an essential component in batteries – could rise by 1,100%. 

To protect future supply, the UK is now seeking to ensure that no more than 60% of its the needs for any one critical mineral is imported from any one country by 2035.

50,000 tonnes of locally produced lithium

To achieve this, the government is working with the mining sector to harness the country’s lithium deposits and enhance its recycling capabilities. At least 50,000 tonnes of lithium should be produced in the UK by 2035, largely thanks to Europe’s largest lithium deposit in Cornwall – which received a £31 million commitment from the National Wealth Fund in September.

The UK also benefits from 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. 

Read also: Critical minerals concentration could jeopardise energy transition

UK 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.”

This is the first national strategy focused on the critical minerals sector – which contributes £1.79 billion to the UK economy and directly supports over 50,000 jobs, with more than 50 critical mineral projects currently aiming to extract and refine these materials. 

UK strategy roughly aligned with EU Critical Materials Act

The EU is also aiming to reduce reliance on foreign countries for critical minerals, and has laid out a similar strategy to that of the UK.

The Critical Raw Materials Act sets strategic supply chain milestones to be reached by 2030: 10% of the EU's annual needs for extraction; 40% for processing and 25% for recycling. It adds that no more than 65% of the EU’s annual needs of each strategic raw material at any relevant stage of processing should come from a single third country.

According to the European Commission, 63% of the world’s cobalt is currently extracted in the Democratic Republic of Congo, 97% of the EU’s magnesium supply is sourced from China, and 100% of the rare earths used for permanent magnets are refined in China.