UK Embarks on Critical Minerals Strategy Amid Global Competition for Supplies
As tensions between China and its Western adversaries escalate, the UK has taken a proactive step towards reducing its dependence on Chinese critical minerals. Prime Minister Keir Starmer announced an ambitious strategy to bolster domestic production of these essential materials, which are crucial for various industries, including car manufacturing, electric vehicles, and datacentre operations.
The £50m investment in boosting tungsten and lithium mines in Cornwall is a significant move towards self-sufficiency. Europe's largest lithium deposits are located in Cornwall, and the EU has identified the county as a key location for potential financial support. This initiative aims to establish the UK as a major player in the production of rare earths and critical minerals.
The strategy follows a six-week standoff between China and the EU over chip supplies, highlighting Beijing's willingness to use trade as a tool for geopolitical influence. The US and the UK are now engaged in a race to reduce their reliance on Chinese critical minerals. However, the process is complex and time-consuming, requiring significant investment of hundreds of millions of pounds.
The refining of lithium into lithium hydroxide, a key component in electric vehicle batteries, presents a particular challenge. Europe's only refinery, located in Germany, took five years to complete and cost £150m. The UK aims to produce at least 50,000 tonnes of lithium domestically by 2035, marking a significant increase from the current 6% domestic production.
The EU has acknowledged its lag behind the US in securing critical mineral supplies. Industry Commissioner Stéphane Séjourné conceded that the bloc is far behind the US, which has developed a business strategy to secure stocks of critical materials before other countries. The UK's strategy seeks to mitigate this vulnerability by diversifying its supply chains and reducing dependence on any single country for critical minerals.
Starmer views critical minerals as "the backbone of modern life and our national security." By boosting domestic production and recycling, the government hopes to shield the economy from global shocks and reduce living costs. The UK's strategy is a significant step towards self-sufficiency in critical minerals, positioning the country to mitigate the risks associated with dependence on Chinese supplies.
As tensions between China and its Western adversaries escalate, the UK has taken a proactive step towards reducing its dependence on Chinese critical minerals. Prime Minister Keir Starmer announced an ambitious strategy to bolster domestic production of these essential materials, which are crucial for various industries, including car manufacturing, electric vehicles, and datacentre operations.
The £50m investment in boosting tungsten and lithium mines in Cornwall is a significant move towards self-sufficiency. Europe's largest lithium deposits are located in Cornwall, and the EU has identified the county as a key location for potential financial support. This initiative aims to establish the UK as a major player in the production of rare earths and critical minerals.
The strategy follows a six-week standoff between China and the EU over chip supplies, highlighting Beijing's willingness to use trade as a tool for geopolitical influence. The US and the UK are now engaged in a race to reduce their reliance on Chinese critical minerals. However, the process is complex and time-consuming, requiring significant investment of hundreds of millions of pounds.
The refining of lithium into lithium hydroxide, a key component in electric vehicle batteries, presents a particular challenge. Europe's only refinery, located in Germany, took five years to complete and cost £150m. The UK aims to produce at least 50,000 tonnes of lithium domestically by 2035, marking a significant increase from the current 6% domestic production.
The EU has acknowledged its lag behind the US in securing critical mineral supplies. Industry Commissioner Stéphane Séjourné conceded that the bloc is far behind the US, which has developed a business strategy to secure stocks of critical materials before other countries. The UK's strategy seeks to mitigate this vulnerability by diversifying its supply chains and reducing dependence on any single country for critical minerals.
Starmer views critical minerals as "the backbone of modern life and our national security." By boosting domestic production and recycling, the government hopes to shield the economy from global shocks and reduce living costs. The UK's strategy is a significant step towards self-sufficiency in critical minerals, positioning the country to mitigate the risks associated with dependence on Chinese supplies.