UK to invest $66 million in critical minerals to reduce import reliance

LONDON — Britain will invest £50 million ($66 million) to expand domestic production of critical minerals, the government announced on Monday, as it moves to reduce dependence on concentrated global supply chains and strengthen economic resilience.

The funding will support projects across extraction, processing, and recycling, aimed at securing materials used in a wide range of products, including smartphones, refrigerators, and electric vehicle batteries.

The latest allocation builds on more than £200 million already committed to the sector as the government accelerates efforts to build a more secure and self-sufficient supply chain for strategic materials.

Industry Minister Chris McDonald is expected to launch the program during a visit to an industrial research hub in northeast England, where companies are developing new technologies for metal recovery and advanced processing.

Britain has been stepping up initiatives to secure access to critical minerals amid rising global demand and China’s continued dominance of the sector. China currently accounts for around 70% of rare earth mining and about 90% of global refining capacity, underscoring concerns over supply chain concentration.

“Critical minerals are vital for our national security,” McDonald said.

Recent developments include the opening of Britain’s first commercial rare earth magnet facility in 25 years. The plant, operated by Mkango Resources’ HyProMag unit in Birmingham, uses recycled materials to produce magnets used in electric motors and other advanced technologies.

The government has also pursued partnerships with allies such as the United States and South Korea to diversify access to critical minerals, focusing on collaboration in supply chains, processing capacity, and investment flows.

Under the new funding package, £20 million will go toward a rare earth magnet hub, £25 million will support an accelerator program designed to scale up emerging projects, and up to £5 million will fund a platform to consolidate industry demand and attract private investment. -Reporting by Sam Tabahriti; editing by William James/Reuters