Keir Starmer has introduced a strategy focusing on critical minerals and rare earths aimed at reducing the UK’s dependency on Chinese supplies. The initiative addresses concerns over reliance on a limited number of overseas suppliers, which may expose the economy and national security to vulnerabilities.
A £50 million fund has been allocated to support production at tungsten and lithium mines in Cornwall, which hosts Europe’s largest lithium deposits. Recent developments have highlighted the EU’s interest in Cornwall’s tungsten mine as a potential site for financial support.
This strategy comes in the context of recent trade tensions between China and the EU concerning chip supplies for the car industry, emphasizing China’s use of critical materials in political negotiations. The UK, alongside the US, is actively seeking to lessen its reliance on China, although establishing domestic production of rare earths and critical minerals typically requires significant investment and time.
While lithium supplies are available throughout Europe, refinement into lithium hydroxide—a key component in car batteries—is a necessary process. The only lithium hydroxide refinery in Europe, located in Germany, necessitated five years and £150 million in investments to build, illustrating the financial and temporal challenges of such ventures.
Recent comments from the EU’s industry commissioner indicated that the EU currently lags behind the US in securing critical materials. Earlier this year, the UK entered a minerals cooperation agreement with Saudi Arabia to enhance supply chains and attract investments.
The UK strategy aims to ensure that no single country supplies more than 60% of any critical mineral by 2035. The government reports that domestic production currently meets only 6% of its critical mineral requirements but plans to increase this figure, particularly for lithium, nickel, tungsten, and rare earths, targeting a production goal of at least 50,000 tonnes of lithium by 2035.
Source: https://www.theguardian.com/world/2025/nov/23/uk-launches-critical-minerals-strategy-to-reduce-dependency-on-china