Critical Minerals Strategy

With permission, I would like to make a statement on the Government’s critical minerals strategy. Madam Deputy Speaker, I am particularly delighted that you are in the Chair, given your personal interest in critical minerals, having launched the UK’s first critical minerals strategy a number of years ago. I am also pleased to be joined on the Front Bench by my hon. Friend the Member for Croydon West (Sarah Jones), for whose work I aim to take the credit this evening.

The story of man is the story of metals. From the discovery of the first alloy—bronze, a mixture of copper and tin—people have smelted, melted, forged and formed metals to their will. Knowledge of the art of blending alloys has been sought throughout history by kings and nations for defence and prosperity. The ancients recognised the noble metals of gold and silver, and the base metals of tin, lead, copper and iron. The industrial revolution led to the industrial metals of steel, aluminium and titanium, but our age is to be dominated by critical minerals—the basic materials that give function to everything from digital technology to fusion energy. That is why we have launched our new Vision 2035, the UK’s critical minerals strategy. It is part of our industrial strategy and supports the Government’s No. 1 mission—the mission for growth. Whether it is neodymium for permanent magnets, platinum for fuel cells or copper for infrastructure, our critical minerals strategy will ensure that the UK can access these vital materials, and that we all benefit from the security and economic opportunities they offer.

The UK is already home to one of the largest nickel refineries in Europe at Clydach, and a rare example of European cobalt refining at Widnes. We have titanium production in Swansea, aluminium at Fort William, chromium in Rotherham, platinum group metals and vanadium, all with the highest standards of environmental control. In Cornwall, we have Europe’s largest deposits of lithium, and in Devon, the world’s largest deposits of tungsten. The UK has the only western source of rare earth alloys for F-35 fighter jets.[Official Report, 25 November 2025; Vol. 776, c. 4WC.] (Correction) To quote my right hon. Friend the Chancellor of the Exchequer,

“where things are made…matters.”—[Official Report, 11 June 2025; Vol. 768, c. 979.]

We have world-leading academic institutions. The University of Birmingham is commercialising a process for pulverising magnets into a powder for remanufacturing. Queen’s University Belfast is developing magnet recycling technologies, using ionic liquids to recover rare earth metals. Camborne SCHOOL OF MINES has remained a leading British institution for over a century, and I am looking forward to visiting tomorrow.

Having spent much of my career in metals research, I know that as a country we underestimate the global standing of our institutions, but of course the point of research is to create value for the UK economy, which means commercialisation at home. In Britain, we understand the advantage that can be created by a global dominance in metals. For centuries, half of the world’s tin came from Cornwall and Devon. Britain dominated the graphite industry thanks to the Borrowdale deposits in Cumbria. Almost all the world’s copper was smelted in Swansea and the majority of global steel production came from Sheffield. As a nation, we confidently built a global competitive advantage from ingenuity alone, taking action to shape the world around us. Now, we have the opportunity to confidently do so again. By combining our natural mineral deposits, secondary resources from recycling, strength in midstream processing, innovation, and a role as the global centre for finance and trading, we will ensure that by 2035 at least 10% of annual UK demand is met from domestic production and 20% from recycling. This displacement of imports by the development of both primary and secondary recycling routes is driven by a need to enhance our economic security.

The deployment of this strategy will ensure that our capabilities are marshalled and supported appropriately, our supply chain opportunities are identified, and that resources, both public and private, are targeted at strengthening the UKs competitive position. Our industrial strategy is a deliberate partnership between Government and private investment, and this is also the case on critical minerals. Up to £50 million of new Government funding for domestic production will take total funding to over £200 million. The City of London is already a global centre for the listing of mining companies and mining finance. With the London Metal Exchange as the global hub for metals trading, and ICE Futures Europe expanding into critical minerals, our opportunity is to redirect our financial and investment strength into UK industrial development.

Significant investment support is available from UK Export Finance and the National Wealth Fund. That will reduce the need for UK entrepreneurs to sell their companies to overseas investors at an early stage, and increase the opportunity for Britain to benefit from the growth of new UK-owned, UK-headquartered and UK-listed industrial champions.

Our British industrial competitiveness scheme, the consultation on which was announced in a written statement laid before the House today, will improve the competitiveness of the business environment. It will reduce electricity costs by up to £40 per megawatt-hour from April 2027 for over 7,000 eligible manufacturing businesses, reducing their energy bills by 25%.

Having identified our critical mineral needs and domestic capabilities, and as we now take action to secure investment, we must make sure that our policies on trade and international co-operation ensure diversity of supply and safeguard our nascent industries. As well as exploiting our natural primary and secondary sources of critical minerals, we will diversify international supply chains, so that by 2035, no more than 60% of any critical mineral will come from a single country. We will achieve this by ensuring that future trade agreements allow increased access to critical mineral supply chains, and by entering into bilaterial agreements that increase the breadth of our supply base. We will work through organisations such as the G20, G7, the World Trade Organisation, NATO and the International Energy Agency to improve supply chain resilience.

In June, the Prime Minister announced the largest sustained increase in defence spending since the end of the cold war, and for the sake of national security, we are considering mandating that stockpiles be held by industry, using procurement to create diversity in the supply chain, and taking part in the NATO critical minerals stockpiling project. Our trade strategy includes a strengthened approach to trade defence, ensuring that we can safeguard UK businesses from an increasingly volatile international trading environment. That will involve us introducing new legislation to expand our powers to raise tariffs in response to unfair trading practices.

This Government are not agnostic on the fate of British industry and British manufacturing. Given a fair business environment, our industry and workers can out-compete others. The industrial capability of Britain should not be subject to the whims of the international market or foreign Governments. Our industrial strategy, and the place of critical minerals within it, is a marked departure from the hands-off approach of the past. The UK Government is now working in close partnership with UK industry to support private sector investment and growth, just as other developed economies have done and continue to do. The new critical minerals strategy is another step forward in that ambition, and gives business investors confidence that the materials, industry and jobs for Britain’s future are secured. Critical minerals are essential for building the modern world. Control and supply of these materials are the means by which nations will secure power and wealth in this century. I commend this statement to the House.

I will definitely be paying close attention. I call the shadow Minister.

I thank the Minister for advance sight of his statement. Critical minerals are vital to our national security. In submarines, missiles, jet fighters and radar, we need critical minerals for our national defence. Critical minerals in electric vehicles and wind turbines are also vital for clean energy generation.

It is striking, however, that the Government’s critical minerals strategy does not mention China once. That is despite that fact that China, which has built an almost global monopoly on processing, recently imposed export licence requirements on seven rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. Can the Minister say whether the Department has made any assessment of China’s dominance in the critical minerals market and whether the Government consider it a threat?

The UK “Critical Minerals Strategy” document seems to have been written in a bit of a rush. It is sloppy, riddled with spelling mistakes and has inconsistent statistics and errors in geography. Why should industry trust a Government who cannot even proofread? For instance, according to the Cobalt Institute, current global demand is 200,000 tonnes and is set to grow by 14% a year, meaning that by 2030, the global demand for cobalt is forecast to be 438,000 tonnes. In the Government’s document, however, UK domestic demand will be 636,000 tonnes in 2030. Could the Minister kindly proofread the document and place a corrected version of the whole strategy in the Library?

The strategy recognises the impact that high energy prices have had on the critical minerals industry, but under Labour, our energy bills are up. Why do the Government not just adopt our cheap power plan to cut electricity bills by 20%? Oil and gas are key inputs in the production of critical minerals. What impact does the Minister believe this Government’s policy of closing down the North sea will have on domestic critical minerals production?

I start by saying that if there are indeed any spelling or factual errors in the document, I offer my apologies to the House; that is clearly unacceptable, and I will ensure that any corrections are made and that a new copy is laid before the House. I thank the hon. Lady for bringing those matters to my attention.

On the substantive issues raised by the shadow spokesperson, the point about China is clearly very important. The Government are well aware of China’s dominance of critical minerals supply chains. In some areas—particularly in processing, as she will be aware—China controls 70% to 90% of the market. Our critical minerals strategy is designed precisely to provide greater diversity of supply, both at home, through primary and secondary extraction where we have the materials to do that, and through our G7, G20, NATO partners and others, as I mentioned in my statement. A critical point to note is that the supply of secondary raw materials is a natural resource that the UK has. We currently offer those resources for processing overseas, which are then returned to the UK at considerable cost. A focus of this strategy is ensuring that we have those resources in the UK.

The shadow spokesperson mentions electricity bills. I think that my statement is best read in conjunction with the written statement on the British industrial competitiveness scheme, which aims to reduce electricity bills for industry by 25% compared with current levels—a reduction of £40 per MWh. The British industrial competitiveness scheme and the critical minerals strategy are both part of this Government’s relentless focus on growth and our success in attracting inward investment.

As to the points about taxation, I am afraid that the hon. Lady will have to wait 48 hours for the Budget.

Meur ras, Madam Deputy Speaker. Anyone who has visited my Camborne, Redruth and Hayle constituency cannot have missed the signs of our industrial past, but after decades of post-industrial deprivation, global demand for critical minerals is surging to accelerate the transition to a clean energy future—opposed entirely by Reform—and with our unique geology, Cornwall is at the epicentre of the opportunity. The geology has not changed, but the market is back with a Government who get it. This Labour Government have published a strategy with teeth, with targets for domestic production, a new growth minerals list and £50 million in funding. Does the Minister agree that investment must flow into Cornwall to create jobs, reduce the reliance on China that was allowed to run rampant under the Conservatives and, in so doing, unleash the Cornish Celtic tiger?

Meur ras to my hon. Friend. He has been such a strong champion of critical minerals, so it is a pleasure to hear from him today, and it is no wonder that we have, given that Camborne and Redruth is already home to the Crofty tin mine and has great opportunities for lithium extraction as well, holding Europe’s largest deposit of lithium. I believe that this will mark the launch of a renaissance in the mining industry in Cornwall—an industry that has so much to bring to Cornwall and that the Cornish people love so well for the jobs it brings and the pride it gives to communities too. All the work in this strategy would simply not have been possible without the support of my hon. Friend and his fellow MPs from Cornwall. I look forward to finding out more about the opportunities in Cornwall when I visit tomorrow.

I call the Liberal Democrat spokesperson.

I also thank the Minister for advance sight of the statement. Critical minerals are vital to national security, economic development, the green transition and regional prosperity. The Liberal Democrats believe that the UK must strengthen and regularly update its industrial strategy. The 2022 plan and the Critical Minerals Intelligence Centre are useful foundations, but they are insufficient.

We have long been champions of industrial strategy, and we are proud of the strategy that we introduced in Government. I am glad that the Government are taking steps to address green growth, regional inequality and sustainable economic development, and we welcome the ambition shown in the strategy announced today. Increasing domestic production will boost our national resilience to supply chain changes. We support the commitment for at least 10% of annual UK demand to be met from domestic production by 2035. However, what further steps are the Government taking to reduce reliance on unreliable foreign sources of critical minerals? Furthermore, how will the Government ensure that the UK remains competitive with the US and the EU, both of which offer substantial incentives for critical minerals processing?

We welcome the launch of the consultation today on the British industrial competitiveness scheme. Energy-intensive industries are set to benefit from a 90% discount on their electricity network charges, but what support will be available to small businesses, including the many in the hospitality sector that were omitted from the industrial strategy and continue to struggle with energy bills?

I thank the hon. Lady for her words on the strategy. Words are one thing, but implementation is another. This Government are now focused on how we implement the strategy and ensure that we attract investment. The single biggest difference with this Government is that we are putting real money behind the strategy; as I mentioned, we are putting in an additional £50 million, bringing the total funding to £200 million. Through both the British Business Bank and the National Wealth Fund, there are opportunities for more significant investment to ensure that we have UK-headquartered, UK-owned and UK-listed industrial champions in this area. We are not agnostic about industry and manufacturing, and we want to ensure that the communities that host these businesses benefit from that and that the UK economy benefits as a whole.

I am so pleased that the riches beneath our feet in Cornwall will finally be taken out and used in a sustainable way that benefits the people of Cornwall. I am so pleased to see this strategy, as are the people of Cornwall. The Minister is coming to Cornwall and will visit the port in Falmouth, which I hope will benefit from an expansion project. I am also hopeful to see the freight railway restored, which could be used in future to move critical minerals and supplies around in a more sustainable way and take lorries off the road. Will the Minister consider this tomorrow when he comes to Cornwall and as part of the strategy going forward?

I thank my hon. Friend for the significant amount of work she has done and her engagement with me during the preparation of this strategy. She is right to highlight the opportunities at the port of Falmouth. Those opportunities start with critical minerals and perhaps also renewable energy. I intend to visit the port of Falmouth tomorrow and would be pleased to hear more about those opportunities when I am there.

This country has no phosphates, and no phosphates means no agriculture. Happily, our close friend and ally the Kingdom of Morocco has most of the world’s reserves of phosphates, but it is closely followed by unreliable countries such as Russia, China, Syria and Algeria. Does the Minister’s 60% rule apply to phosphates? Will he ensure that the association agreement signed between the UK and Morocco in 2019 is strengthened further so that we can ensure that we do have access to phosphates, without which our farming sector would be completely finished?

I thank the right hon. Member for mentioning phosphates, which he is right are an incredibly important element for agriculture. As for securing supplies, I point him to the part of the strategy that talks about bilateral arrangements with nations to ensure that we get that diversity of supply. We are committed to working through multilateral organisations as well as ensuring that we get bilateral agreements in place with countries with mineral wealth that will be of benefit to the UK and where the relationship can be mutually supportive.

Cornwall has a proud history of mining, and this announcement means that we will also lead the way in meeting the UK’s future demand for critical minerals, so I warmly welcome the Minister’s statement. The Government’s plan will create opportunities for businesses in South East Cornwall such as Cornwall Resources—my constituents thank the Minister for that—including year-round skilled jobs, strong local supply chains and investment that will keep local talent in Cornwall. Will he outline how the Government will ensure that that investment is supported by a clear skills plan so that local people can access the new jobs linked to critical industry and how communities will be involved throughout the exciting months ahead?

I thank my hon. Friend for raising skills and for continually championing industry in Cornwall and skills with me for some time. The existing skills of the people of Cornwall are clearly one of the reasons why these industries will be so successful in Cornwall, but the Government also recognise that more investment in skills is required to ensure that so many viable projects in Cornwall can be successful. I assure her that the Department for Business and Trade is working with the Department for Work and Pensions on this issue. We are determined to ensure that all the people of Cornwall have the opportunity to participate in these industries.

Will the Minister tell the House what is so special about the year 2035? It is the year by which the Government say they will achieve expenditure of 3.5% of GDP on defence—compared with the 4.5% to 5% we used to spend in the cold war years of the 1980s—and it is now the year by which that the Government say no more than 60% of any critical mineral will come from a single country. Do the Government not feel that the deterioration of international relationships is such that we ought to be thinking about a rather closer timescale than 10 years from now?

I do not know about the right hon. Gentleman, but when I am setting objectives, I like them to be specific, measurable and achievable. We have worked carefully with industry on the 2035 target, and projects such as those I mentioned in Cornwall clearly have mobilisation periods. He may be right to point out the synergy between the 2035 date of our critical minerals strategy and of our defence strategy, given that they are so closely linked.