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UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI

UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI

Summary

A UK parliamentary committee found that the country relies too heavily on China for critical minerals used in defence, clean energy and AI. It called for a coordinated strategy, more funding for mining and processing, and closer work with international partners to secure alternative supplies.

Key Facts

  • The committee said China dominates the processing of several critical minerals, including lithium and rare earths.
  • MPs said demand for lithium could rise 45-fold by 2030 and demand for rare earths used in permanent magnets could rise 16-fold.
  • The report described possible Chinese supply cutoffs as a strategic risk to the UK economy and national security.
  • The committee called for a critical minerals finance facility using grants, equity and debt to support projects.
  • Its 10-point plan includes identifying UK mining, refining and recycling opportunities and reducing business procurement from China.
  • The committee said Parliament lacked information about the government’s priorities, identified vulnerabilities and supported projects.
  • It recommended working with G7 partners, Europe and Indo-Pacific countries to combine demand and find new suppliers.
  • The report said a one-year US-China agreement on rare earth export restrictions had been extended to January 2027.
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