PARLIAMENTARY DEBATE
Critical Minerals Strategy - 24 November 2025 (Commons/Commons Chamber)
Debate Detail
The story of man is the story of metals. From the discovery of the first alloy—bronze, a mixture of copper and tin—people have smelted, melted, forged and formed metals to their will. Knowledge of the art of blending alloys has been sought throughout history by kings and nations for defence and prosperity. The ancients recognised the noble metals of gold and silver, and the base metals of tin, lead, copper and iron. The industrial revolution led to the industrial metals of steel, aluminium and titanium, but our age is to be dominated by critical minerals—the basic materials that give function to everything from digital technology to fusion energy. That is why we have launched our new Vision 2035, the UK’s critical minerals strategy. It is part of our industrial strategy and supports the Government’s No. 1 mission—the mission for growth. Whether it is neodymium for permanent magnets, platinum for fuel cells or copper for infrastructure, our critical minerals strategy will ensure that the UK can access these vital materials, and that we all benefit from the security and economic opportunities they offer.
The UK is already home to one of the largest nickel refineries in Europe at Clydach, and a rare example of European cobalt refining at Widnes. We have titanium production in Swansea, aluminium at Fort William, chromium in Rotherham, platinum group metals and vanadium, all with the highest standards of environmental control. In Cornwall, we have Europe’s largest deposits of lithium, and in Devon, the world’s largest deposits of tungsten. The UK has the only western source of rare earth alloys for F-35 fighter jets.[Official Report, 25 November 2025; Vol. 776, c. 4WC.] (Correction) To quote my right hon. Friend the Chancellor of the Exchequer,
“where things are made…matters.”—[Official Report, 11 June 2025; Vol. 768, c. 979.]
We have world-leading academic institutions. The University of Birmingham is commercialising a process for pulverising magnets into a powder for remanufacturing. Queen’s University Belfast is developing magnet recycling technologies, using ionic liquids to recover rare earth metals. Camborne SCHOOL OF MINES has remained a leading British institution for over a century, and I am looking forward to visiting tomorrow.
Having spent much of my career in metals research, I know that as a country we underestimate the global standing of our institutions, but of course the point of research is to create value for the UK economy, which means commercialisation at home. In Britain, we understand the advantage that can be created by a global dominance in metals. For centuries, half of the world’s tin came from Cornwall and Devon. Britain dominated the graphite industry thanks to the Borrowdale deposits in Cumbria. Almost all the world’s copper was smelted in Swansea and the majority of global steel production came from Sheffield. As a nation, we confidently built a global competitive advantage from ingenuity alone, taking action to shape the world around us. Now, we have the opportunity to confidently do so again. By combining our natural mineral deposits, secondary resources from recycling, strength in midstream processing, innovation, and a role as the global centre for finance and trading, we will ensure that by 2035 at least 10% of annual UK demand is met from domestic production and 20% from recycling. This displacement of imports by the development of both primary and secondary recycling routes is driven by a need to enhance our economic security.
The deployment of this strategy will ensure that our capabilities are marshalled and supported appropriately, our supply chain opportunities are identified, and that resources, both public and private, are targeted at strengthening the UKs competitive position. Our industrial strategy is a deliberate partnership between Government and private investment, and this is also the case on critical minerals. Up to £50 million of new Government funding for domestic production will take total funding to over £200 million. The City of London is already a global centre for the listing of mining companies and mining finance. With the London Metal Exchange as the global hub for metals trading, and ICE Futures Europe expanding into critical minerals, our opportunity is to redirect our financial and investment strength into UK industrial development.
Significant investment support is available from UK Export Finance and the National Wealth Fund. That will reduce the need for UK entrepreneurs to sell their companies to overseas investors at an early stage, and increase the opportunity for Britain to benefit from the growth of new UK-owned, UK-headquartered and UK-listed industrial champions.
Our British industrial competitiveness scheme, the consultation on which was announced in a written statement laid before the House today, will improve the competitiveness of the business environment. It will reduce electricity costs by up to £40 per megawatt-hour from April 2027 for over 7,000 eligible manufacturing businesses, reducing their energy bills by 25%.
Having identified our critical mineral needs and domestic capabilities, and as we now take action to secure investment, we must make sure that our policies on trade and international co-operation ensure diversity of supply and safeguard our nascent industries. As well as exploiting our natural primary and secondary sources of critical minerals, we will diversify international supply chains, so that by 2035, no more than 60% of any critical mineral will come from a single country. We will achieve this by ensuring that future trade agreements allow increased access to critical mineral supply chains, and by entering into bilaterial agreements that increase the breadth of our supply base. We will work through organisations such as the G20, G7, the World Trade Organisation, NATO and the International Energy Agency to improve supply chain resilience.
In June, the Prime Minister announced the largest sustained increase in defence spending since the end of the cold war, and for the sake of national security, we are considering mandating that stockpiles be held by industry, using procurement to create diversity in the supply chain, and taking part in the NATO critical minerals stockpiling project. Our trade strategy includes a strengthened approach to trade defence, ensuring that we can safeguard UK businesses from an increasingly volatile international trading environment. That will involve us introducing new legislation to expand our powers to raise tariffs in response to unfair trading practices.
This Government are not agnostic on the fate of British industry and British manufacturing. Given a fair business environment, our industry and workers can out-compete others. The industrial capability of Britain should not be subject to the whims of the international market or foreign Governments. Our industrial strategy, and the place of critical minerals within it, is a marked departure from the hands-off approach of the past. The UK Government is now working in close partnership with UK industry to support private sector investment and growth, just as other developed economies have done and continue to do. The new critical minerals strategy is another step forward in that ambition, and gives business investors confidence that the materials, industry and jobs for Britain’s future are secured. Critical minerals are essential for building the modern world. Control and supply of these materials are the means by which nations will secure power and wealth in this century. I commend this statement to the House.
It is striking, however, that the Government’s critical minerals strategy does not mention China once. That is despite that fact that China, which has built an almost global monopoly on processing, recently imposed export licence requirements on seven rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. Can the Minister say whether the Department has made any assessment of China’s dominance in the critical minerals market and whether the Government consider it a threat?
The UK “Critical Minerals Strategy” document seems to have been written in a bit of a rush. It is sloppy, riddled with spelling mistakes and has inconsistent statistics and errors in geography. Why should industry trust a Government who cannot even proofread? For instance, according to the Cobalt Institute, current global demand is 200,000 tonnes and is set to grow by 14% a year, meaning that by 2030, the global demand for cobalt is forecast to be 438,000 tonnes. In the Government’s document, however, UK domestic demand will be 636,000 tonnes in 2030. Could the Minister kindly proofread the document and place a corrected version of the whole strategy in the Library?
The strategy recognises the impact that high energy prices have had on the critical minerals industry, but under Labour, our energy bills are up. Why do the Government not just adopt our cheap power plan to cut electricity bills by 20%? Oil and gas are key inputs in the production of critical minerals. What impact does the Minister believe this Government’s policy of closing down the North sea will have on domestic critical minerals production?
Under Labour, foreign direct investment into this country has fallen to an all-time low. How do the Government expect to build a critical minerals industry if no one is investing? Can the Minister therefore today rule out any tax rises heading towards this industry on Wednesday? The national insurance jobs tax and the unemployment Bill are set to cost the critical minerals industry £50 million, which is exactly the same figure as the funding pledged by the Government today—the Chancellor’s jobs tax and the 330-page job-killing Employment Rights Bill are costing businesses £1,000 per worker, and there are a total of 50,000 people employed in the critical minerals industry. Is this a recognition from the Minister that the Government’s tax rises are crippling British industry?
In summary, the first duty of any Government is to keep our country safe. Refreshing the critical minerals strategy is an essential part of that mission. Given the scale of global competition and the risks of supply chain disruption, does the Minister agree that there is still a great deal of work to do to ensure that Britain is secure in the critical minerals we need for our future?
On the substantive issues raised by the shadow spokesperson, the point about China is clearly very important. The Government are well aware of China’s dominance of critical minerals supply chains. In some areas—particularly in processing, as she will be aware—China controls 70% to 90% of the market. Our critical minerals strategy is designed precisely to provide greater diversity of supply, both at home, through primary and secondary extraction where we have the materials to do that, and through our G7, G20, NATO partners and others, as I mentioned in my statement. A critical point to note is that the supply of secondary raw materials is a natural resource that the UK has. We currently offer those resources for processing overseas, which are then returned to the UK at considerable cost. A focus of this strategy is ensuring that we have those resources in the UK.
The shadow spokesperson mentions electricity bills. I think that my statement is best read in conjunction with the written statement on the British industrial competitiveness scheme, which aims to reduce electricity bills for industry by 25% compared with current levels—a reduction of £40 per MWh. The British industrial competitiveness scheme and the critical minerals strategy are both part of this Government’s relentless focus on growth and our success in attracting inward investment.
As to the points about taxation, I am afraid that the hon. Lady will have to wait 48 hours for the Budget.
We have long been champions of industrial strategy, and we are proud of the strategy that we introduced in Government. I am glad that the Government are taking steps to address green growth, regional inequality and sustainable economic development, and we welcome the ambition shown in the strategy announced today. Increasing domestic production will boost our national resilience to supply chain changes. We support the commitment for at least 10% of annual UK demand to be met from domestic production by 2035. However, what further steps are the Government taking to reduce reliance on unreliable foreign sources of critical minerals? Furthermore, how will the Government ensure that the UK remains competitive with the US and the EU, both of which offer substantial incentives for critical minerals processing?
We welcome the launch of the consultation today on the British industrial competitiveness scheme. Energy-intensive industries are set to benefit from a 90% discount on their electricity network charges, but what support will be available to small businesses, including the many in the hospitality sector that were omitted from the industrial strategy and continue to struggle with energy bills?
May I have the Minister’s assurance that, although we have a justified urge to get these minerals out, we will not abandon the environmental and residential concerns of our constituents in the areas impacted? Does he also acknowledge that transport is important and that Devon needs the Dawlish rail line to support these minerals?
On his prime point about the environmental aspect of mining for these minerals in Devon, I mentioned in my statement that the UK project will be held to the highest environmental standards. I specifically wrote those words into the speech because we need to take into account, when assessing the sources of critical minerals, that great environmental harm is caused in many places in the world by their extraction and processing. The processing in particular presents an economic opportunity for the UK, but there is also an environmental responsibility that we need to face up to. It is incumbent on us to find a way to do this processing economically in the UK so that environmental harms are not caused anywhere else in the world.
As the Minister will be aware, Cornwall has its own industrial strategy, which harmonises with the Government’s ambition and includes the space sector, green energy and geothermal. Will he ensure that the Government back the Cornish industrial strategy so that we can crack on with delivering the critical minerals strategy, and indeed all other aspects of the Cornish industrial strategy?
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