UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI
Delivering net zero also at risk, say MPs as they call for centralised policy and funding for mines and diversification The UK is “dangerously” dependent on China for critical raw
By The Guardian
Britain is “dangerously” exposed to China for critical minerals needed to rearm, deliver net zero and build artificial intelligence infrastructure, MPs have warned.
The Business, Innovation, Science and Trade Committee said the UK could not secure its economic and national security without more resilient supplies of minerals including rare earth elements.
Its report, published on 5 November, said the Government needed to move urgently to reduce the country’s dependence on China and protect supply chains from economic coercion.
MPs called for a centralised policy to identify the minerals the UK needs and assess where its biggest risks lie. They said demand information should be brought together from government and industry, including minerals currently hidden in trade statistics.
The committee also recommended greater use of domestic mining, processing and recycling. It said geological surveys should be modernised, while lower energy costs and incentives for onshore recycling could help strengthen UK supply.
Another proposal was the creation of allied “buyers’ clubs”. These would allow partner countries to share the cost of developing new mines and processing plants, which the committee said could cost up to $3 billion each.
MPs said the Government should establish a Critical Minerals Finance Facility to bring together public finance institutions. The facility would be expected to support strategic projects through equity investment, loans, long-term purchase agreements and price guarantees.
The committee’s chair said Britain remained exposed 16 years after China first used its dominance of rare earth elements as a source of leverage.
The report said the UK should focus on reducing the most dangerous dependencies rather than attempting to remove Chinese minerals entirely from its supply chains.
Its recommendations are intended to support alternative sources for materials used in defence equipment, renewable energy infrastructure and artificial intelligence technology.