UK launches critical minerals strategy to reduce dependency on China

"For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks, the prime minister said. The critical minerals initiative comes with a 50m fund to boost production at tungsten and lithium mines in Cornwall. Europe's largest deposits of lithium are in Cornwall, and the EU singled out the county's tungsten mine for potential financial support this summer."

"The strategy follows a six-week standoff between China and the EU over the supply of chips used in the car industry, underlining how Beijing is willing to use trade in critical materials for political purposes. The UK and the US are now battling to reduce their dependence on China, but the production of rare earths and critical minerals can take years and hundreds of millions of pounds in investment."

"Lithium supplies exist all over Europe, but the raw material needs to be refined into lithium hydroxide, a crystal-like ingredient used to create the charge in car batteries. Europe's only lithium hydroxide refinery, in Germany, has taken five years to build and 150m in investment, showing the scale of the funding needed. Last week the EU's industry commissioner, Stephane Sejourne, conceded that the bloc was far behind the US, which he said had a business department that buys stocks of critical materials before everyone else."

Keir Starmer announced a critical minerals and rare earths strategy to reduce UK dependence on a few overseas suppliers and build resilience against China. The initiative includes a 50m fund to boost tungsten and lithium production in Cornwall, where Europe's largest lithium deposits and a tungsten mine have drawn EU attention. It follows a six-week China–EU standoff over chip supplies and shows how Beijing can use trade in critical materials for political leverage. Production and refining of lithium and rare earths can take years and hundreds of millions of pounds; Europe's only lithium hydroxide refinery in Germany took five years and 150m to build. The UK has sought minerals cooperation with Saudi Arabia to bolster supply chains, as rare-earths are vital for smartphones, electric vehicles and datacentres that power artificial intelligence.

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