UK MPs find nation 'dangerously' reliant on China for critical minerals

A parliamentary investigation has found that the United Kingdom is "dangerously" dependent on China for critical raw materials required for the military, renewable energy infrastructure, and AI.

Strategic Vulnerabilities

The Business, Innovation, Science and Trade Committee stated that China has a "stranglehold on the world’s supply of rare earths and other critical minerals, as well as their refined byproducts." These materials are essential for a wide range of products, including military jets, car-locking systems, and consumer goods such as fridges and washing machines.

According to the committee, the primary bottleneck exists at "the processing stage," where China dominates the refining of seven categories of minerals. This includes refined lithium for electric vehicles and rare earths used in the wings and fuselage of military aircraft to help them withstand temperature extremes.

MPs were informed of significant projected increases in demand between now and 2030:

• Demand for lithium alone is expected to increase 45-fold.
• Demand for rare earths used in permanent magnets for military jets and other applications is expected to rise 16-fold.

The committee noted that China is capable of suddenly turning off rare earth supplies, citing an instance in 2025. Such a move would represent a strategic vulnerability for the UK economy and national security. The report also noted that separate restrictions on legacy chips following a dispute over a Dutch intervention in the China-owned Nexperia left the European car industry "days away" from stoppages last October.

Proposed Solutions and Policy Concerns

Liam Byrne, the chair of the committee, stated, “Critical minerals are the alpha of the new economy,” adding, “We cannot rearm Britain, build AI or deliver net zero unless we secure the minerals these technologies depend on.” He further noted, “Yet 16 years after China first weaponised its chokehold over rare earths, Britain remains dangerously exposed.”

The committee proposed a 10-point plan to address these risks, which includes:

• Identifying domestic mining, refining, and recycling opportunities and their associated costs.
• Developing a strategy to encourage businesses to reduce procurement from China.
• Creating a plan to unlock investment.
• Assessing planning and permitting processes that may act as barriers to mining.
• Working with G7 partners, Europe, and Indo-Pacific countries to "aggregate demand" and bring in new suppliers.

MPs also called for the creation of a “critical minerals finance facility” to fund rare earth and other critical mineral mines through grants, equity, and debt.

Government Response

A government spokesperson denied that the UK lacks a critical minerals strategy, stating the government is delivering £400m "to ramp up domestic production and recycling" and to forge new international partnerships. The spokesperson noted that the strategy includes clear goals for 2035, such as meeting 10% of demand through domestic production and 20% through recycling, with the condition that "no more than 60% of any critical minerals coming from any single country."

However, the committee expressed frustration regarding a lack of transparency, stating, “Parliament has no visibility of the capabilities the government is seeking to protect, the vulnerabilities it has identified, or the projects it is backing to reduce risk.” The committee concluded that "the UK requires new institutional and financial muscle."

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Sources

• theguardian.com: UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI | Critical minerals | The Guardian
• ft.com: Subscribe to read
• edie.net: MPs warn Britain is "dangerously" dependent on China's critical minerals - edie

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.