U.K., Nov. 5 -- UK Parliament issued the following news:
Sixteen years after China first weaponised its dominance of rare earth elements, Britain remains dangerously exposed to economic coercion, warns the Business, Innovation, Science and Trade Committee in a report published today.
Read the report
The Committee concludes that Britain cannot re-arm, deliver net zero or build the AI infrastructure on which future prosperity depends without securing critical mineral supplies.
Indeed, it assesses that Government does not currently appear able to pass any of the 10 tests the Committee sets out in a report today, to "precision de-risk" UK critical mineral supply chains and begin to counter the threat of economic coercion.
Britain lacks up-to-date geological surveys, high energy costs make domestic processing uneconomic, and 80% of UK metal waste is exported rather than recycled at home. Meanwhile, outdated restrictions on public finance institutions are holding back investment in alternative supplies.
The Committee calls for a five-part plan to 'precision de-risk' Britain's most dangerous dependencies:
Prioritise sovereign capabilities where dependence on China poses unacceptable risks.
Forecast demand by combining government and industry intelligence on minerals currently hidden in trade statistics.
Maximise domestic mining, processing and recycling, modernising geological surveys, cutting energy costs and incentivising onshore recycling.
Establish allied 'buyers' clubs to share the costs of new mines and smelters, which can reach $3 billion apiece.
Create a Critical Minerals Finance Facility, bringing together Britain's public finance institutions to finance strategic projects through equity, loans, long-term offtake agreements and price floors.
The Committee recommends freeing British International Investment to take equity stakes in overseas mining projects and widening UK Export Finance's mandate to support economic security. It also highlights how the National Wealth Fund's £25 million minimum equity investment makes financing smaller, early-stage projects difficult.
Chair comment
Rt Hon Liam Byrne MP, Chair of the Committee, said:
"Critical minerals are the alpha of the new economy. We cannot re-arm Britain, build AI or deliver net zero unless we secure the minerals these technologies depend on.
"Yet sixteen years after China first weaponised its chokehold over rare earths, Britain remains dangerously exposed. We don't know enough about what minerals we need or where to find them. Our energy costs make processing uneconomic, we're exporting valuable metal waste, and our public finance institutions are shackled by outdated rules.
"We're never going to eliminate Chinese minerals from our supply chains. But it's foolish to leave Britain exposed to economic coercion when we could be building alternative supplies.
"That's why we need a new Critical Minerals Finance Facility with the financial firepower to invest in new mines, processing plants and recycling, working with our allies to share the costs.
"De-risking even a prudent proportion of our supplies will take over a decade. Britain cannot afford to drift. We must act now before dangerous dependencies become strategic liabilities."
The report follow's the Committee's Monday publication on the UK Government's reactive, inconsistent, and opaque approach to China.
Later on Thursday, the report will be discussed at a Chatham House symposium bringing together representatives from the defence, AI, renewable energy and critical minerals sectors.
Further information
About Parliament: Select committees
Visiting Parliament: Watch committees
Business Innovation, Science and Trade Committee
Image: Adobe stock
Disclaimer: Curated by HT Syndication.
