UK "dangerously" reliant on China for critical minerals, parliamentary committee finds

Critical Mineral Dependency Identified

A parliamentary investigation by the UK's business select committee has concluded that the United Kingdom faces a "dangerous" reliance on China for critical raw materials. These materials are fundamental for the country's military capabilities, renewable energy infrastructure, and artificial intelligence development.

Call for Policy and Funding

In response to this finding, Members of Parliament (MPs) on the committee urged the government to implement an urgent, centralized policy. They also proposed the creation of a "critical minerals finance facility." This facility would fund rare earth and other critical mineral mines, and provide grants, equity, and debt to accelerate a diversification program for mineral supplies.

Strategic Vulnerability

The committee highlighted that China controls a significant portion of the world's supply of rare earths and other critical minerals, including their refined byproducts. This dominance extends to the processing stage, where China refines seven categories of minerals, such as lithium for electric vehicles and rare earths used in military aircraft. The report noted that demand for lithium is projected to increase 45-fold by 2030, and rare earths 16-fold, exacerbating the UK's dependency.

The committee warned that this reliance creates a strategic vulnerability for the UK's economy and national security, citing past instances where China restricted rare earth supplies.