The UK has published a new Critical Minerals Strategy setting out targets and measures designed to bolster domestic mining, processing and recycling and to reduce reliance on concentrated global supply chains.
The strategy, published by the Department for Business and Trade, frames critical minerals , such as lithium, nickel, copper, rare earth elements, tin and platinum group metals , as “foundational inputs to sectors driving the Industrial Strategy” and central to the government’s wider objective of long‑term economic growth.
In summer, the government published its Industrial Strategy promising a raft of benefits for high growth potential industrial operators in the UK.
Within the new minerals strategy, a proposed two‑pronged policy approach is detailed aiming for efforts to “optimise domestic production” and “build resilient UK and global supply networks”.
Measures set out are intended to support mining projects in the UK, expand midstream processing and recycling, and use public finance, trade policy and international partnerships to secure supplies for industry.
The strategy articulates a clear set of quantifiable ambitions to 2035.
It states the UK’s success should be measured by a set of features, including:
- At least 10% of annual UK demand for critical minerals in the aggregate is met through domestic production (primary extraction, processing and refining of critical minerals) by 2035,
- At least 50,000 tonnes of lithium (or lithium carbonate equivalent) is produced domestically by 2035,
- 20% of total annual UK demand for critical minerals is met through recycling of products to recover critical minerals by 2035.
It also sets a diversification objective which would make sure “supply is diversified, so that no more than 60% of the UK’s annual demand for critical minerals in the aggregate is supplied by any one country by 2035.”
The strategy acknowledges the UK is “a net importer of critical minerals” and that its domestic mining sector “is smaller in scale” than major producing countries.
Nonetheless it identifies domestic geological prospects and existing industrial capabilities that the government says can be developed.
The report lists mineral occurrences and exploration across the UK , for example lithium in Cornwall and County Durham, tungsten and tin in Cornwall, copper and zinc exploration in Anglesey, and nickel and cobalt prospects in Aberdeenshire.
It also highlights existing midstream and processing strengths, citing the Vale Base Metals refinery at Clydach, Wales, as a case study.
The document describes the refinery as “the UK’s only nickel refinery and one of the largest in Europe,” noting that it processes imported ores into “Class 1 battery‑grade nickel (99.9% purity)” used in aerospace alloys, electronics and battery precursors.
Another case study draws attention to tin: “Currently, UK extraction of tin is exported to be refined and processed, before high purity tin and tin‑containing products are imported,” the paper states, pointing to a midstream gap that presents “an opportunity for international collaboration and provides a focus for investment.”
To help move early projects to commercial production , an acknowledged barrier in the sector , the strategy outlines a package of measures that touches planning, energy costs, skills and finance.
On planning and permits, the Environment Agency’s “priority tracked service” has been extended to include the critical minerals industry.
The document explains the service “allows developers in England to work with a dedicated team for innovative projects requiring complex permitting solutions,” and that coordinators “will bring together the expertise and advice required to successfully navigate the requirements of the Environmental Permitting Regulations.”
Energy costs feature prominently throughout the new report.
The strategy reiterates the industrial energy support ambition set out elsewhere in government policy, noting the new British Industrial Competitiveness Scheme (BICS).
The report states: “From 2027, this new scheme will reduce electricity costs by up to £40 per megawatt hour which could benefit over 7,000 businesses.”
It also points to planned increases in relief under the Network Charging Compensation Scheme, raising the discount for the most electricity‑intensive firms from 60% to 90% from 2026, and a review of the British Industry Supercharger scheme in 2026.
On skills, the strategy commits to work “in collaboration with Skills England and the Department for Work and Pensions (DWP)” to “explore the skills needed by the critical minerals and mining industry,” and to leverage Jobcentre Plus and the Jobs and Careers Service to support recruitment and retention.
The document sets out how UK public finance institutions will be used to de‑risk projects and crowd in private capital. It lists the National Wealth Fund (NWF), UK Export Finance (UKEF) and the British Business Bank (BBB) as core instruments.
The strategy provides figures on recent NWF support, stating NWF has “completed equity investments of £24M into Cornish Lithium in 2023 and £28.6M into Cornish Metals in 2025.
Looking ahead, the strategy announces that “following the 2025 Spending Review, the Department for Business and Trade (DBT) will provide funding support of up to £50M for critical mineral projects in the UK, as part of the wider innovation landscape,” with further detail to be announced in 2026.
The paper also commits to widen UKEF support, saying UKEF has “updated its eligibility to include the new growth minerals list” and that UKEF’s domestic Critical Goods Export Development Guarantee can help suppliers access working capital where at least 50% of production “goes to a UK exporter or exporters.”
The strategy places a notable emphasis on recycling and midstream processing as part of domestic supply security. It sets the target of 20% of total annual UK demand for critical minerals is met through recycling by 2035 and indicates the government sees recycling ramping up from the early 2030s
The report states: “Due to timescales at which clean energy technologies will reach end of life, recycled sources of critical minerals will ramp up from 2030 and become a significant source of critical minerals by 2040.”
With this, the government says it will align its Circular Economy Growth Plan with the critical minerals agenda.
It states: “[The government] will consider policy areas that are a reserved competence, such as waste exports” and “will outline regulatory reform to incentivise the recovery of critical minerals from end‑of‑life products alongside reducing demand.”
The report continues: “PGMs that enter secondary production directly from industrial processes… are recycled at a rate near the 95% maximum potential.”
Alongside the critical minerals list, the paper introduces a new “growth minerals” list intended to signal minerals the UK expects will be important to its Industrial Strategy growth sectors.
The document says the growth minerals list “will complement the Critical Mineral Intelligence Centre’s UK 2024 criticality assessment by anticipating future demand of minerals for the Industrial Strategy’s growth‑driving sectors.”
The list adds minerals such as copper, chromium, beryllium, uranium and synthetic graphite, and the strategy provides demand signal estimates to 2035 for a range of materials, including a projected lithium demand rise from 28,680t LCE in a 2027 midpoint estimate to 399,200t by 2035.
While the paper sets domestic targets, it is explicit that domestic production cannot satisfy projected demand alone. The strategy states: “We will continue to be reliant on imports of critical minerals, even as we ramp up our domestic capabilities.”
The strategy repeatedly links security of supply to environmental, social and governance (ESG) standards. The paper asserts that “critical mineral supply chains are not secure unless they are also responsible and sustainable” and sets out the government’s expectation that “all UK companies to respect human rights, workers’ rights and the environment throughout their operations and supply chains in line with the OECD Guidelines… and the UN Guiding Principles on Business and Human Rights.”
The strategy frames critical minerals activity as UK‑wide.
It sets out specific regional strengths with Cornwall’s tin, tungsten and lithium geology; County Durham and Teesside’s potential; Wales’s historical metallurgy, Northern Ireland’s research strengths via Queen’s University Belfast and Scotland’s focus on circularity and resilient supply chains.
The paper notes that the strategy is being pushed by the UK government but that it will “work together with devolved administrations to ensure that the strategy is tailored to the needs of industry and leverages strengths across the whole of the UK.”
It identifies scope for clustering around existing regional strengths and highlights several concrete projects and public investments already made into Cornish extraction companies. For producers, the expansion of permitting support, targeted energy reliefs and the prospect of public investment are intended to reduce key barriers to development.
Minister of State for Industry at the Department for Business and Trade and Department for Energy Security and Net Zero Chris McDonald said: “Critical minerals are integral to our modern way of life, from lithium in the smartphones we rely on to Rare Earth Elements (REEs) in the permanent magnets that drive the wind turbines and electric vehicles which will help power the green transition. These vital metals and minerals are used in communications, critical infrastructure, defence, renewable energy, transport and life sciences. Without them, our lives would grind to a halt. Industries would shut down overnight and communities would not be able to function.
“In the UK alone, we anticipate that between now and 2035 yearly demand for copper will almost double, while demand for lithium will increase by 1,100%. As economies across the globe undertake the green transition, the demand for these minerals will only increase as their energy sources and transport systems become increasingly reliant on low-carbon technology.
“In the global market, we have seen increasingly concentrated processing and mining supply chains in recent years. Such concentration means that the supply chain is particularly vulnerable to shocks such as natural disasters, war or geopolitical fallout. It is vital, therefore, that we have a plan to secure critical minerals for our industries and to diversify our supply chains.
“This government recognises the huge opportunities on offer for both our critical minerals industry and the vital growth sectors it serves, which is why we are setting out our strategy to both take advantage of those opportunities and guard against the dangers of shortages or disruption.
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