News
In an effort to end overreliance on imports of critical materials, the UK Government has unveiled a new strategy to invest in the domestic production of the resources essential to critical industries such as automotive.
The Critical Minerals Strategy sets out the ambition to produce 10% of the UK’s mineral needs domestically and 20% through recycling by 2035.
Many of these critical materials are vital to the automotive industry, including lithium, which is used to create the batteries that power electric vehicles (EVs), and copper, which is used in the manufacturing of vehicle braking systems.
The government has pledged to invest up to £50 million into critical mineral projects in an effort to turbocharge domestic production and processing. The move could help the UK accelerate its vision of a resilient supply chain, less vulnerable to disruption from global import tariffs and trade disputes.
Announced ahead of the Autumn Budget, the UK’s strategy follows in the footsteps of countries such as the U.S., which under the Trump administration pivoted towards the domestic production and processing of its own supplies of rare earth materials and magnets.
The government has positioned this effort to shore up its supply chains as part of a wider push to end overreliance on imports from other countries, most notably China, which currently accounts for 70% and 90% of rare earth mining and refining respectively.
In a statement issued last week, UK Prime Minister Keir Starmer said:
“Critical minerals are the backbone of modern life and our national security – powering everything from smartphones and fighter jets to electric vehicles and wind turbines.
For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks.”
The new strategy takes into consideration the growing demand for critical rare-earth materials in line with the steady growth of the EV market in the UK. Accelerated by impending EV legislation, which will ban the sale of all new diesel and petrol vehicles by 2035, the demand for lithium alone is expected to rise by 1,100% by 2035.
Theoretically, the new strategy will not only deliver a significant number of jobs and boost the UK economy, but will also improve the UK’s resilience to global shocks such as natural disasters and war.
Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
