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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