Politics1 min read

UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI

By · Via The Guardian Politics · Published by Everything Blog

In short

A parliamentary investigation highlighted that lithium demand alone will spike 45-fold by 2030, alongside massive requirements for rare earths essential to military equipment. MPs recommended a 10-point plan featuring a dedicated finance facility and coordinated action with G7, European, and Indo-Pacific allies to build supply resilience. While committee chair Liam Byrne warned that vital national targets are at risk, the government pointed to an active £400 million programme setting domestic production and recycling targets for 2035.

Key points

  • A dedicated financing facility providing grants, equity, and debt was proposed by MPs to…: A dedicated financing facility providing grants, equity, and debt was proposed by MPs to develop alternative mining projects.
  • Britain remains vulnerable to shifts in Sino-American relations due to reliance on a Unit…: Britain remains vulnerable to shifts in Sino-American relations due to reliance on a United States-negotiated rare earth export reprieve.
  • National strategy mandates capping mineral import dependency on any individual foreign na…: National strategy mandates capping mineral import dependency on any individual foreign nation at 60 percent by 2035.

Sources checked by our analysis pipeline: 1

The UK is “dangerously” dependent on China for critical raw materials needed for the military, renewable energy infrastructure and AI, a parliamentary investigation has found.

MPs on the business select committee called for an urgent centralised policy and the creation of a “critical minerals finance facility” to help fund rare earth and other critical mineral mines, and deploy grants, equity and debt to accelerate a diversification programme.

“Critical minerals are the alpha of the new economy,” said the committee’s chair, Liam Byrne. “We cannot rearm Britain, build AI or deliver net zero unless we secure the minerals these technologies depend on.

“Yet 16 years after China first weaponised its chokehold over rare earths, Britain remains dangerously exposed.”

It is the second time in a week that the government’s policy on China has been criticised by Byrne’s committee.

China has a stranglehold on the world’s supply of rare earths and other critical minerals, as well as their refined byproducts that are used in everything from military jets to car-locking systems and consumer products such as fridges and washing machines.

The committee…

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