What the UK’s New Critical Minerals Strategy Is
1. Overview & Goals
- The UK government published its Critical Minerals Strategy on 22 November 2025, backed by the Department for Business and Trade. (GOV.UK)
- It’s a long-term (“Vision 2035”) plan to strengthen the UK’s supply chain for critical minerals, especially those needed for clean energy, technology, and high-growth industries. (GOV.UK)
- The strategy’s three core objectives:
Key Targets & Commitments
- By 2035:
- 10% of the UK’s critical mineral demand should be met through domestic production (mining + processing) (GOV.UK)
- 20% of demand should come from recycling critical minerals. (GOV.UK)
- At least 50,000 tonnes of lithium (or lithium carbonate equivalent) should be produced domestically annually. (GOV.UK)
- No more than 60% of any one critical mineral should be imported from a single country. (GOV.UK)
- New funding: Up to £50 million will support critical mineral projects, including R&D, commercialisation, and infrastructure. (GOV.UK)
- Financing and guarantees:
Strategic Focus Areas & Strengths
- The strategy emphasizes midstream processing — not just extraction, but refining and manufacturing critical minerals within the UK. (GOV.UK)
- It highlights geographical strengths: Cornwall (lithium), Clydach, Swansea (nickel refinery), and rare earth alloys used in high-tech applications (e.g., magnets for wind turbines and defense). (GOV.UK)
- The UK plans to leverage its research capacity (like the Camborne School of Mines) and drive innovation in recycling. (GOV.UK)
- A Critical Minerals Intelligence Centre (CMIC), led by the British Geological Survey, will help map resources, monitor supply chains, and analyze risk. (GOV.UK)
- The government plans to review and update this strategy regularly, with input from industry and a Critical Minerals Expert Committee. (GOV.UK)
Why the UK Is Doing This — Risks & Drivers
- Supply chain risk & national security: The UK is exposed to heavy reliance on a few foreign suppliers. For example, China dominates certain rare-earth minerals (70% of mining, 90% of refining) according to the government. (GOV.UK)
- Growing domestic demand: Demand for critical minerals is projected to surge:
- Economic opportunity: Developing a domestic critical minerals ecosystem could create high-value jobs, especially in regions like the North East, South West (Cornwall), and Swansea. (GOV.UK)
- Environmental & ESG goals: Boosting recycling and more responsible sourcing aligns with sustainability goals. (GOV.UK)
- Resilience through diversification: The strategy aims to diversify import sources and reduce concentration risk (too much from one country). (GOV.UK)
Challenges & Risks
- Technical & economic feasibility: Scaling up mining, processing, and recycling is capital- and energy-intensive. Ensuring projects meet ESG standards will be challenging.
- Planning / permitting: Mining projects in the UK often face long planning processes, local opposition, and environmental scrutiny.
- Financing gap: While £50 million is proposed, the scale needed for full critical-mineral infrastructure may be much larger, especially for midstream facilities.
- Market risk: Prices for critical minerals can be volatile. If global demand or prices drop, some domestic projects may struggle to stay viable.
- International geopolitics: While the UK wants to diversify, critical minerals often come from geopolitically sensitive regions — partnerships could be complicated.
- Recycling scale: Achieving 20% recycling by 2035 is ambitious; it requires robust systems for collection, processing, and re-manufacturing of end-of-life products.
Strategic Implications
- Industrial policy shift: This strategy signals that the UK government sees critical minerals not just as raw materials, but as a strategic industrial sector.
- Green growth: By linking critical minerals to green technologies (EVs, wind, batteries), the UK is integrating raw-material strategy into its clean-energy ambitions.
- National security integration: Mineral supply is being framed as part of national resilience — not just economic, but strategic (defense, technology).
- Innovation push: Increased R&D in recycling, midstream processing, and resource mapping may drive new technologies in the UK.
- Global partnerships: The UK will likely deepen its engagement with resource-rich countries and multilateral initiatives to secure diversified, responsible supply.
- Good question. Here are case-studies + commentary on the UK’s new Critical Minerals Strategy (“Vision 2035”), focusing on what it might practically mean, where the biggest risks lie, and its strategic implications.
Case Studies: Key Strategic Moves in the Critical Minerals Strategy
Case Study 1: Cornwall – Lithium & Regional Industrial Clustering
What the Strategy Says / Plans:
- The UK aims to produce at least 50,000 tonnes of lithium (or lithium-carbonate equivalent) domestically by 2035. (GOV.UK)
- Cornwall is a highlighted region because of its lithium potential. The strategy calls out leveraging “Europe’s largest lithium deposit in Cornwall.” (GOV.UK)
- Part of the plan involves developing midstream processing and refining in the UK (not just mining), aiming for high standards of environmental, social, and governance (ESG) compliance. (GOV.UK)
Implications:
- This could support a regional industrial renaissance in Cornwall: mining, refining, processing, and recycling could all create jobs and investment locally. (GOV.UK)
- By refining lithium (and potentially other minerals) domestically, the UK does not just rely on raw extraction – it climbs the value chain, which is strategically more valuable.
Risks / Challenges:
- Exploration and mining in Cornwall may face planning and environmental hurdles, especially given Britain’s strict regulations.
- High energy costs in the UK could make domestic refining less competitive unless state aid or innovation reduces costs. (S&P Global)
- To hit the target, private companies must invest heavily, but returns may be uncertain — especially if global mineral prices shift.
Case Study 2: Circular Economy – Recycling Critical Minerals
What the Strategy Says / Plans:
- By 2035, the UK wants 20% of its critical mineral demand to be met through recycling (from end-of-life products). (GOV.UK)
- The strategy explicitly prioritizes creating a circular economy: more collection, reuse, and recovery of minerals from batteries, electronics, and other critical mineral–rich waste. (GOV.UK)
- Challenges are acknowledged: many waste streams are currently hard to recycle, collection rates are low, and recovery from certain products (like EV batteries or wind turbines) is technically difficult. (GOV.UK)
- The government also points to existing UK strengths: e.g., Johnson Matthey, a major refiner, already recycles a large share of platinum-group metals. (GOV.UK)
Implications:
- Scaling up recycling can significantly reduce reliance on imported raw minerals, because reused material doesn’t need as much processing or import.
- Recycling can also drive innovation in UK recycling technology, potentially creating a new domestic industry (collection, refining, reuse).
- A strong circular economy can help the UK meet environmental goals (less mining, less waste) while also strengthening resilience.
Risks / Challenges:
- Building a recycling infrastructure at scale is costly and requires coordination between governments, companies, and waste management bodies.
- The most valuable critical minerals (like rare earths) are often locked in complex products (motors, electronics), making recovery technically challenging.
- There may be limited economic incentives for recycling unless the collection system is significantly improved and recycling processes are made cost-effective.
Case Study 3: Supply Chain Diversification – International Partnerships
What the Strategy Says / Plans:
- The UK’s strategy has a strong international dimension: it aims to diversify supply, so that no more than 60% of any one critical mineral comes from a single foreign country by 2035. (GOV.UK)
- The government plans to deepen partnerships with resource-rich countries and use trade policy, trade agreements, and diplomatic tools to secure more resilient, transparent critical mineral supply chains. (GOV.UK)
- It also wants to use its financial sector (especially in London) to promote responsible finance for mining globally, pushing ESG standards in mining and refining abroad. (GOV.UK)
Implications:
- Diversifying imports reduces risk: geopolitical shocks, resource nationalism, or supply chain disruptions won’t cripple the UK’s access to critical minerals.
- By pushing ESG in its partnerships, the UK can help shape more sustainable mining globally — not just extracting for itself, but encouraging better practices.
- Investing in financial mechanisms and traceability gives the UK leverage: it can reward responsible producers, making its critical mineral supply chain more ethical and resilient.
Risks / Challenges:
- International partnerships are uncertain: not all countries will agree to ESG-heavy or transparency-focused deals, especially if production costs go up.
- Dependence on foreign producers will likely continue (especially for minerals that don’t exist in commercial quantities in the UK), so complete self-sufficiency isn’t realistic.
- Trade tensions or protectionism could undermine long-term deals; managing those diplomatic risks will be delicate.
Commentary & Strategic Analysis
- Balanced Strategy, Not Self-Sufficiency
- The UK strategy is not about becoming 100% self-sufficient in critical minerals — instead, it’s about resilience. By combining domestic production, recycling, and diversified imports, the UK is aiming for balance.
- This is smart: critical minerals markets are global, and trying to go it alone (without imports) would be extremely costly and inefficient.
- Industrial Renewal Opportunity
- The focus on regions like Cornwall suggests an industrial renewal possibility: mining + refining could revive areas that once depended on heavy industry or mining.
- If successful, the strategy could create green jobs and help with “levelling up” economically lagging regions.
- Green & Economic Synergy
- The strategy aligns with the UK’s net-zero goals: critical minerals are essential for EVs, batteries, wind turbines, and more. By securing these materials, the UK strengthens its green industrial base.
- At the same time, it could boost economic growth: recycling, midstream processing, and refining are high-value activities with potentially strong long-term returns.
- Risks of Overpromising
- The 2035 targets are ambitious. Achieving 10% domestic production and 20% recycling requires sustained capital, favorable regulation, and concerted industry effort.
- There is a risk that some projects might not materialize, or that recycling volumes lag, especially given technical and economic barriers.
- Energy costs in the UK could remain a drag on refining operations unless mitigated by policy (e.g., special electricity support).
- Strategic Diplomacy Is Essential
- The success of the diversification effort depends heavily on diplomatic relationships, especially with key mining countries.
- The UK financial sector (London) could play a critical role: by promoting ESG-linked investment in critical minerals, the UK can influence how minerals are mined globally, not just for itself.
Bottom Line
- What’s good: The UK’s strategy is pragmatic and forward-looking. It doesn’t rely on a single fix, but uses a three-pronged approach (domestic mining, recycling, and international partnerships).
- What’s risky: Ambitious targets, high costs, and technical challenges mean execution will be hard — and there’s no guarantee all goals will be met.
- Strategic impact: If it works, the UK could strengthen its position in the clean-tech supply chain, reduce vulnerability to global shocks, and create economic value at home.