Britain is to invest up to £71 million in reopening a tungsten mine in Devon, in a move ministers say will strengthen the country’s defence, energy and aerospace industries and reduce reliance on China for a strategically important mineral.

The Hemerdon tungsten and tin mine on the outskirts of Plymouth will receive backing from the National Wealth Fund, giving the Government a 7% stake in the project for £36 million and a further £35 million towards restarting production.

Ministers will also have the right to ringfence half of the mine’s output for British use, potentially securing a domestic supply of a metal considered critical to advanced manufacturing and defence.

John Healey, Chancellor of the Exchequer, said: “We are living in a more dangerous world, which is why backing British industry is more important than ever before.

“That is what this deal does.

“We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.

“This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the UK.

“(This is) all part of this Government’s commitment to drive growth in every postcode, back British business and keep our country safe.”

Tungsten is prized for its exceptional hardness and resistance to heat, making it important across machinery, electronics, aerospace and defence manufacturing.

The investment comes as Western governments seek to secure supplies of critical minerals amid growing tensions with China. Beijing dominates global tungsten production and introduced export restrictions in 2025, contributing to a sharp increase in prices during the continuing trade confrontation with the US.

For Britain, reopening Hemerdon offers a rare opportunity to bring a strategic mineral supply chain back onshore.

But the project also illustrates the difficulties involved in rebuilding domestic mining capacity. The mine ceased production in 2018 after its previous owner entered administration, while Tungsten West warned in 2023 that it was approaching insolvency.

The company subsequently sought government assistance after recording losses of more than £10.3 million to March 2024.

The National Wealth Fund said the investment would support around 350 jobs, while the South West contains some of Britain’s richest deposits of critical minerals, including lithium and tin.

Business Secretary Jonathan Reynolds described the deal as a “vote of confidence” in Britain’s critical minerals industry.

Jeff Court, chief executive of Tungsten West, said: “We are incredibly pleased to welcome the UK Government’s National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine.

“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK.

“It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy.

“Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs.

“Through the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”

The Government’s investment represents a broader shift in economic policy: critical minerals are increasingly being treated not simply as commodities, but as strategic assets.

With China controlling much of the global supply and geopolitical tensions disrupting established trade routes, the ability to extract and process key materials domestically is becoming an increasingly important component of national security.

For Hemerdon, the challenge now is turning that strategic importance into a commercially viable mine — and proving that Britain can once again produce the materials its defence and industrial base increasingly depends upon.