UK Invests £50 Million in Critical Minerals to Cut Import Reliance

The government has announced £50 million in new funding to accelerate domestic production of critical minerals, as part of a strategy to reduce the UK's reliance on overseas supply chains for materials vital to electric vehicles, wind turbines and consumer electronics.

Industry Minister Chris McDonald unveiled the investment on 25 June 2026 at Teesside's Wilton Centre, visiting two companies at the forefront of UK minerals processing, Seloxium, which works on critical minerals processing, and DEScycle, which is building what it describes as a world first e-waste recovery facility. The announcement is part of the government's broader Critical Minerals Strategy, published as Vision 2035 in November 2025.

Why Critical Minerals Matter

Critical minerals are the raw materials behind much of modern technology. Lithium goes into the batteries powering electric vehicles and smartphones. Rare earth elements drive the permanent magnets inside wind turbines and EV motors. Cobalt, nickel and copper are woven through clean energy infrastructure, defence systems and medical equipment.

The UK currently imports the vast majority of what it needs. Global supply chains are heavily concentrated China, for instance, controls an estimated 70% of rare earth mining and around 90% of refining capacity worldwide. That concentration makes supply chains vulnerable to geopolitical shocks, trade restrictions and natural disasters.

The UK's Supply Chain Exposure

The government's Vision 2035 strategy acknowledges the UK is a net importer of critical minerals, sharing that vulnerability with other major economies including EU member states. Without action, increasing domestic demand driven by the clean energy transition and the growth of advanced manufacturing would deepen that dependence.

The funding is structured around three distinct programmes, each targeting a different part of the critical minerals supply chain.

The Three Pillars

The Department for Business and Trade (DBT) will deliver the investment through the following streams:

Together, the three pillars are designed to grow UK capability from the ground up, from mining and extraction through to refined processing and end of life recycling. The Demand Aggregation Platform is a new approach, intended to give government and industry a clearer picture of what the UK actually needs, sector by sector, and where supply gaps exist.

The 2035 Target

The £50 million sits within a wider ten year strategy. Vision 2035 sets specific, measurable goals for domestic production and supply diversification by the middle of the next decade.

What Success Looks Like

The government has defined three headline ambitions for 2035:

• Domestic production: At least 10% of annual UK demand for critical minerals met through domestic sources, including at least 50,000 tonnes of lithium produced in the UK
• Recycling: 20% of total annual UK demand met through recycling and recovery from end of life products
• Supply diversification: No single country to supply more than 60% of the UK's annual critical minerals demand in aggregate

UK Strengths the Strategy Aims to Build On

The government argues the UK has distinct advantages it can leverage. These include lithium deposits in Cornwall and County Durham, nickel and cobalt exploration under way in Aberdeenshire, tungsten and tin in Cornwall, and the Vale Base Metals nickel refinery at Clydach in Wales, one of Europe's largest, with an annual capacity of 40,000 tonnes.

Policy Context

The critical minerals investment is one strand of the government's broader Industrial Strategy, launched in July 2025. Critical minerals are identified as a foundational industry, one that underpins the eight growth driving sectors the strategy prioritises, including advanced manufacturing, clean energy, digital and tech, and defence.

Support Mechanisms Already in Place

The £50 million announced this week builds on existing government support, which has already exceeded £200 million across various programmes:

International Dimension

Alongside the domestic investment, the strategy commits to building international supply partnerships. The UK participates in the Minerals Security Partnership, G7 and G20 minerals working groups, and NATO discussions on supply chain resilience. Separately, the government is reviewing the National Security and Investment Act's notifiable acquisition regulations, with proposals to create a standalone critical minerals category.

The £50 million announced this week is a direct response to the structural vulnerabilities that global critical mineral supply chains expose. It covers three distinct needs, magnet manufacturing, broader extraction and recycling projects, and demand mapping and is positioned as the next stage of investment after more than £200 million already committed.

The government's 2035 targets are ambitious: doubling or better the domestic share of critical minerals supply while ensuring no single country holds a majority of the UK's supply in any given mineral. Whether those targets are achievable will depend heavily on private investment alongside public funding, planning reform and sustained energy cost relief, all of which the strategy acknowledges remain unresolved challenges.

The critical minerals sector currently contributes £1.79 billion to the UK economy and supports over 50,000 jobs. Over 50 domestic critical mineral projects are at various stages of development. The Wilton Centre visit and the accompanying announcements signal that the government views this sector not as a niche industrial concern, but as central to its growth mission.