Prime Minister Keir Starmer has launched a new critical minerals strategy aimed at reducing the UK’s reliance on China for essential materials used across modern industries, from electric vehicles to consumer electronics.
The announcement comes amid prolonged global competition for rare earths and strategic minerals, which play a key role in defence technologies, renewable energy and high-tech manufacturing.
“For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks,” Starmer said.
Rare earth elements and other critical minerals are vital for products ranging from smartphones to datacentres and electric vehicle batteries.
Supply chain vulnerabilities have become increasingly apparent amid geopolitical tensions and rising demand for clean-energy technologies.
Central to the government’s plan is a £50m fund to support extraction and processing in Cornwall, home to Europe’s largest lithium deposits and a significant tungsten mine.
The funding aims to accelerate operations at local projects and position Cornwall as a strategic mining hub.
The EU previously signalled interest in supporting the region’s tungsten mine, highlighting its importance in Europe’s wider supply chain efforts.
The UK strategy follows a six-week confrontation between China and the EU over semiconductor supplies used in the automotive sector.
The dispute underscored Beijing’s willingness to restrict vital materials to gain political leverage.
Both the UK and the US are now seeking to reduce exposure to such risks, but developing domestic capacity is a lengthy and costly process.
Lithium extraction may be widespread, but refining operations remain limited.
Europe’s only lithium hydroxide refinery, built in Germany, took five years and £150m to complete.
EU industry commissioner Stéphane Séjourné said recently that the bloc lags behind the U.S. in securing supplies.
He noted that the U.S. “often buy[s] them from under our noses,” reflecting Washington’s aggressive purchasing strategy.
Earlier this year, the UK signed a minerals cooperation agreement with Saudi Arabia to strengthen supply chains and attract investment.
Rare earths remain crucial for developing datacentres as the demand for artificial intelligence infrastructure grows.
Under the new strategy, the UK aims for no more than 60% of any single critical mineral to come from one country by 2035.
The government says the UK currently produces only 6% of its critical mineral requirements.
The plan will focus on expanding domestic mining, refining and recycling capacity, with particular emphasis on lithium, nickel, tungsten and rare earths.
The goal is to produce at least 50,000 tonnes of lithium annually by 2035.
Starmer called critical minerals “the backbone of modern life and our national security” and said expanding local extraction would support efforts to lower long-term living costs.
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