The UK Government has announced a new critical minerals strategy aimed at reducing the country’s reliance on imported minerals.
Unveiled by Prime Minister Keir Starmer, the plan targets meeting at least 10% of mineral demand through domestic production and 20% via recycling by 2035.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Additionally, the strategy aims to cap import exposure, ensuring that no more than 60% of any single critical mineral is sourced from one country.
The strategy is backed by up to £50m in funding to boost critical minerals projects.
China holds a dominant position in critical mineral supply chains, accounting for roughly 70% of rare earth mining and around 90% of refining.
This dominance means the UK depends heavily on a small number of foreign sources for materials essential to technologies such as electric vehicles and wind turbines.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLithium is a key focus, with a domestic production target of at least 50,000 tonnes within the next decade.
Lithium is prioritised as demand in the UK is projected to increase by 1,100% by 2035, while copper demand is expected to nearly double.
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.”
The government has already invested more than £165m in UK critical minerals companies.
Combined with backing from the National Wealth Fund, UK Export Finance and other public finance sources, this new fund will accelerate sector growth nationwide and strengthen the UK’s position in securing vital mineral supplies globally.
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 have been dependent on a select few sources for our supplies of them, putting our national security at risk.
“Now, we are 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.”
Beyond domestic production, the UK will explore stockpiling options, potentially via defence procurement, and by continuing its participation in Nato’s Critical Mineral Stockpiling project.
Critical minerals currently add £1.79bn to the UK economy and sustain more than 50,000 jobs, with more than 50 extraction and refining projects under way, said the government.
Mining and processing companies across the UK have welcomed the new approach, saying it offers a clear framework to unlock investment and speed up domestic projects.
Cornish Lithium CEO Jamie Airnes 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.”
