UK Unveils Ambitious Plan to Diversify Critical Minerals Supplies from China
Prime Minister Keir Starmer has announced a significant strategy aimed at reducing Britain's dependence on China for critical minerals and rare earths, materials essential for everything from car doors to fridges. The move comes after a six-week standoff between China and the EU over chip supplies, highlighting Beijing's willingness to use trade as leverage in its diplomatic efforts.
The UK has pledged £50m to boost production at lithium and tungsten mines in Cornwall, a region that hosts Europe's largest deposits of these critical minerals. The initiative aims to increase domestic extraction and processing, particularly for lithium, nickel, tungsten, and rare earths. By 2035, the government wants to produce at least 50,000 tonnes of lithium in the UK.
The plan is part of a broader effort by Western nations, including the US, to reduce their reliance on China for these vital materials. However, the production of critical minerals can be a costly and time-consuming process, requiring significant investment. Europe's only lithium hydroxide refinery, located in Germany, took five years to build and £150m in investment.
The UK's strategy is part of a growing recognition of the importance of critical minerals in driving economic growth and national security. The government argues that diversifying domestic production and recycling can help shield the economy from global shocks and support efforts to lower living costs.
As part of its plan, the UK aims to ensure no more than 60% of any one critical mineral comes from a single partner country by 2035. This move is seen as a major step towards reducing dependence on China, which has long held a stranglehold on supplies of these materials. Britain's cooperation with Saudi Arabia earlier this year to bolster supply chains is another indication of the government's commitment to diversifying its critical minerals base.
The EU, under pressure from the UK and the US, is scrambling to catch up in the production of critical minerals. Industry Commissioner Stéphane Séjourné has acknowledged that the bloc is far behind the US in this regard, with the American business department often snapping up stocks of these materials before Europe does.
Prime Minister Keir Starmer has announced a significant strategy aimed at reducing Britain's dependence on China for critical minerals and rare earths, materials essential for everything from car doors to fridges. The move comes after a six-week standoff between China and the EU over chip supplies, highlighting Beijing's willingness to use trade as leverage in its diplomatic efforts.
The UK has pledged £50m to boost production at lithium and tungsten mines in Cornwall, a region that hosts Europe's largest deposits of these critical minerals. The initiative aims to increase domestic extraction and processing, particularly for lithium, nickel, tungsten, and rare earths. By 2035, the government wants to produce at least 50,000 tonnes of lithium in the UK.
The plan is part of a broader effort by Western nations, including the US, to reduce their reliance on China for these vital materials. However, the production of critical minerals can be a costly and time-consuming process, requiring significant investment. Europe's only lithium hydroxide refinery, located in Germany, took five years to build and £150m in investment.
The UK's strategy is part of a growing recognition of the importance of critical minerals in driving economic growth and national security. The government argues that diversifying domestic production and recycling can help shield the economy from global shocks and support efforts to lower living costs.
As part of its plan, the UK aims to ensure no more than 60% of any one critical mineral comes from a single partner country by 2035. This move is seen as a major step towards reducing dependence on China, which has long held a stranglehold on supplies of these materials. Britain's cooperation with Saudi Arabia earlier this year to bolster supply chains is another indication of the government's commitment to diversifying its critical minerals base.
The EU, under pressure from the UK and the US, is scrambling to catch up in the production of critical minerals. Industry Commissioner Stéphane Séjourné has acknowledged that the bloc is far behind the US in this regard, with the American business department often snapping up stocks of these materials before Europe does.