The UK government has launched a new Critical Minerals Strategy which sets out the ambition to produce 10% of country's mineral needs domestically and 20% through recycling by 2035. The UK currently produces 6% of its critical minerals needs domestically.
The strategy includes also includes the target of having at least 50,000 tonnes of lithium produced in the UK by 2035. The critical minerals sector contributes £1.79 billion to the UK economy.
This new strategy marks the first time that the UK has set out “clear and tangible ambitions” to grow domestic production and recycling of critical minerals, while reducing reliance on third party countries, the government said. It said that, by 2035, no more than 60% of the UK’s supply of any one critical mineral should be imported from any one country.
Critical minerals, which include elements such as lithium and copper, are used in an array of products from batteries to smartphones, cars and wind turbines. The UK wants to guarantee supplies of these minerals as China in particular holds a strong position in global critical minerals production and supply chains.
A recent report from the International Energy Agency (IEA) noted that China currently dominates the midstream and downstream supply chains for batteries globally, with shares of 80% in many key areas. In some segments such as precursor cathode materials and LFP cathode materials, China maintains a near monopoly, with shares of 95% or above. "This exceptional concentration creates multiple points of vulnerability across the supply chain,” the IEA said.
The government said that, in the UK alone, demand for lithium will increase 1100% by 2035, while copper demand will double in the same timeframe. “For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks,” the UK's Prime Minister Keir Starmer said.
The release of the strategy follows the publication of a report by the National Preparedness Commission and SCI. The report: Industrial Resilience: Assessing the foundations of UK industry, looks at the impact of future crises on UK industry and reveals “a startling vulnerability and lack of resilience.”
The report, released in November, warns that key materials to support the manufacture of electronics, batteries, and energy are neither mined or manufactured in the UK and, under current circumstances, it is not conceivable that they could be on-shored in a commercially competitive way without a clear strategy and significant intervention.
The UK is home to one of Europe’s largest lithium deposits, located in Cornwall, England. Clydach, Swansea, in Wales, is the location for one of Europe’s largest nickel refineries and the government said it is the only Western source of rare earth alloys used in magnets "found in wind turbines and F-35 fighter jets, amongst others".
In September the UK's National Wealth Fund said that it was making a £31 million commitment to the company Cornish Lithium, for two projects in Cornwall. The first is its Trelavour Lithium Project, which is repurposing a former China-clay pit to produce lithium through responsible hard rock extraction. The second is the Cross Lanes Project which has identified the potential for lithium extraction from the waters that naturally circulate deep underground.
There are currently more than 50 critical mineral projects based in the UK aimed at extracting refining these materials. Key regions with critical mineral resources include North East England in County Durham, and Teesside, and South West England in Devon and Cornwall.
As well as supporting the UK’s resilience the projects also provide investment opportunities. Tom McCulley CEO of Anglo American’s Crop Nutrients Business said: “With London at the centre of global mining finance, the UK has an opportunity to drive investment and growth through partnerships along the value chain and through the emergence of a modern mining industry in the UK itself.”
Further reading:
- Industry at risk from lack of resilience warns report
- Critical mineral export controls put supply chains at risk
- Critical minerals: Action needed to reduce use and improve sustainability
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