Keir Starmer’s Government had pledged to publish a new critical minerals strategy this spring, but it is now several months overdue
Britain risks falling behind in the race for critical minerals used in F-35 fighter jets and other key military kit without an updated strategy on the precious resources, experts have warned.
Sir Keir Starmer’s Government had pledged to publish a new critical minerals strategy this spring, but it is now several months overdue.
The strategy, an update of a 2022 document under the previous Tory government, is expected to contain measures to shore up supply chains for rare earths and other critical minerals heavily used in the defence industry.
The race to produce and stockpile the minerals has intensified after China, the world’s biggest processor of the resources, imposed export controls on rare earths, while the rush to boost military supplies amid fears of World War Three has increased demand globally.
Britain is currently in talks with Greenland for a potential deal to strengthen cooperation on critical minerals, which are plentiful in the Arctic territory.
US President Donald Trump struck a deal with China last week in which Beijing agreed to suspend export controls on rare earths for the US in return for reduced tariffs on Chinese goods destined for America.
The Department for Business and Trade said only that the new strategy would be published “soon”.
However, industry leaders are concerned that the lack of the document is creating uncertainty in both the domestic critical minerals sector and the ability to compete globally for the resources.
While there is no suggestion that Britain would face a shortage of F-35 fighter jets, a squeeze on the rare earths and other elements that are used in their technology could make them more expensive.
F-35s use rare earths as well as titanium, cobalt, gallium and beryllium, which are all essential for the aircraft’s technology, including engines, radar, avionics and stealth capabilities. The jets cost around £96m each, according to 2023 figures.
Last week, MPs warned that the UK’s ability to fight a war is being compromised by “significant problems” in its F-35 programme.
John Lindberg, policy and government affairs principal at the International Council on Mining and Metals, said: “We recognise that in a world of competing domestic and international priorities, locking down the next iteration of the critical minerals strategy might not make the top of the list.
“Nevertheless, we would urge the UK Government to push ahead with its strategy, for three reasons.
“Firstly, having a clear strategic framework is paramount as it gives stakeholders – be it other governments, companies or investors – certainty to make informed decisions.
“Secondly, with critical minerals increasingly becoming an issue of geopolitics, there is a risk of backsliding on responsible mining practices.
“The UK can play an important role in setting clear expectations for responsible practices being normative, and the critical minerals strategy could send a very clear signal to that effect.
“Thirdly, the UK’s comparative advantages aren’t static, and with many governments trying to grapple with the same challenges around critical minerals, the UK risks falling behind if the strategy – and its sense of direction – is further delayed.”
Mike King, South West business development and government relations vice president at Cornish Lithium, said the firm had received “strong support” from the Government through investment from the National Wealth Fund.
He added: “Based on our conversations with Government, it is clear there is a real recognition that the UK needs to secure its future domestic lithium supplies, high-skilled jobs and industrial growth.
“And a successful critical minerals strategy can achieve all of this in a period of geopolitical uncertainty, which has elevated risk in critical minerals supply chains.
“The quickest way to put this into action will be a critical minerals strategy that sets a domestic lithium production target and aligns investment priorities and other measures to ensure the target is achieved.”
Dan Marks, research fellow for energy security at the Royal United Services Institute, said the UK and other countries seeking to boost their weapons arsenals were “exposed” in needing to amass critical minerals, particularly given China’s export controls.
He added that the updated strategy needed to focus on “more outward investment, and quite much more targeted and holistic than it has been to this point”.
Marks said: “This Government, in general, around these critical supply chains, needs more urgency. It does need to get it right, because it hasn’t been got right before.
“The problem is, though, that taking longer has not helped them get somewhere. All that’s actually happened is that ambition keeps getting scaled down, because every time it’s: ‘Well, we thought growth was going to be this much, but actually it’s more disappointing than we thought. There’s less money than we thought, and we need to use more of that money to solve the immigration problem, or for reducing waiting lists or parole’.
“So it just gets more deprioritised.”
At Defence Questions on Monday, former Tory leader Sir Iain Duncan Smith warned Defence Secretary John Healey of how important critical minerals were for the UK military.
Duncan Smith said rare earths were “critical for the defence of the United Kingdom and having a supply directly owned by us, here in this country, must surely be a critical issue”.
He asked whether Healey had looked at the issue and talked about it with his business minister colleagues to say “we need now a supply that we use here and produce in our own country”.
Healey said: “The short answer … is yes. The slightly longer answer is, we are doing so with close allies, we’re also doing so with Ukraine.”
A Government spokesperson said the strategy would be published “soon”, while on the issue of Chinese export controls on rare earths, they said: “It’s disappointing to see further export restrictions on rare earth elements that will cause delays and additional red tape for UK businesses.
“We continue to support affected companies and will work with the Chinese Ministry of Commerce to ensure supplies are not disrupted and licences are granted in a timely manner.”
