UK government launches Critical Minerals Strategy  

The UK government has published a new Critical Minerals Strategy that sets out plans to meet a greater share of the country’s mineral needs through domestic production and recycling by 2035.

The government has said it wants to reduce the UK’s ‘overreliance’ on foreign imports of critical minerals essential for everyday life and to protect the economy and national security from global shocks such as natural disasters or conflict.

The strategy sets targets for producing 10% of UK demand domestically and sourcing 20% through recycling. It will also cap reliance on any single country to no more than 60% of the supply of any critical mineral by 2035.  

Backed by up to £50mn in new funding, the plan includes an ambition to produce at least 50,000 tonnes of lithium in the UK by 2035 – more than the estimated weight of the Titanic.

Demand for many minerals is rising sharply. In the UK alone, copper use is expected to nearly double by 2035, while lithium needs are projected to grow by 1,100%.

The UK already has several significant critical mineral assets, including Europe’s largest known lithium deposit in Cornwall, one of the world’s largest sources of tungsten, a major nickel refinery in Swansea and the only Western source of rare earth alloys used in high-performance magnets.

Prime Minister Keir Starmer said: ‘For too long, Britain has been dependent on a handful of overseas suppliers, leaving our economy and national security exposed to global shocks. That is why we are taking decisive action to change that, boosting domestic production, ramping up recycling, and backing British businesses with the investment they need to compete on the international stage.’

According to government figures, the critical minerals sector contributes around £1.79bn to the UK economy and directly employs more than 50,000 people. More than 50 UK-based critical mineral projects are underway, with existing government support for the sector totalling more than £165mn.

The government plans to back domestic projects through public finance bodies including the National Wealth Fund and UK Export Finance. In September, the National Wealth Fund invested £31mn in Cornish Lithium to advance two projects.

EU and South Africa advance cooperation  

Meanwhile, the European Union (EU) and South Africa have signed a package of agreements aimed at deepening cooperation on clean trade, investment and critical raw materials.

They were announced by European Commission (EC) President Ursula von der Leyen, European Council President António Costa and South African President Cyril Ramaphosa ahead of last month’s G20 summit in South Africa. The Clean Trade and Investment Partnership will aim to boost mutually beneficial trade, investment and job creation while accelerating decarbonisation and the development of clean supply chains. It is intended to diversify EU partnerships, open new opportunities for European companies and improve access to critical raw materials, while supporting South Africa’s sustainable industrial growth, employment and emissions-reduction efforts.  

The EU and South Africa also signed a memorandum of understanding with the aim to develop sustainable minerals and metals value chains, following similar agreements with Zambia, the Democratic Republic of Congo and Namibia. The partnership seeks to jointly develop industrial projects of common interest across the exploration, extraction, refining and recycling of minerals and metal.  

The EU also announced a series of new project signings under its Global Gateway strategy, marking a step forward in delivering the nearly €12bn Team Europe Investment package unveiled by von der Leyen and Ramaphosa in October.

Central to the announcement are three Team Europe investment facilities – together worth almost €328mn – aimed at accelerating the development of green hydrogen and e-battery industries, strengthening sustainable critical raw material value chains and improving the overall investment environment.

President of the European Commission Ursula von der Leyen and South African President Cyril Ramaphosa have signed a landmark agreement on critical minerals

Copyright European Union – 2025 

US plan to expand domestic production of critical minerals and materials

The US Department of Energy (DOE) has announced $355mn in funding to expand domestic production of critical minerals essential for energy, manufacturing, transportation and national defence. The announcement covers two notices of funding opportunities issued by DOE’s Office of Fossil Energy.

The first initiative, Mines & Metals Capacity Expansion, will provide up to $275mn to support pilot-scale facilities that recover valuable minerals from coal-based feedstocks and industrial byproducts. The programme aims to demonstrate the feasibility of producing critical materials from existing industrial infrastructure, reducing waste while establishing new domestic supply chains.

The second, the Mine of the Future – Proving Ground, offers up to $80mn to develop field sites for testing and demonstrating next-generation mining technologies. The programme seeks to accelerate commercialisation of advanced mining systems and provide workforce training for the next generation of US miners and engineers.

These announcements follow DOE’s broader plan, first outlined in August, to invest $1bn in mining, processing and manufacturing technologies.