The UK’s critical minerals supply chains are vulnerable due to
our continuing dependence on autocracies – in particular China –
and the inaction of successive UK governments, a report from the
Foreign Affairs Committee has found.
The Foreign Affairs Committee is today publishing its report, “A
rock and a hard place: building critical mineral resilience”.
Critical minerals, such as lithium and cobalt, are of strategic
significance to the UK and are essential to our economic security
and to meeting our climate change targets.
The Committee finds that successive UK governments have failed to
recognise the importance of critical minerals. They have lacked
the foresight to respond to the aggressive capture of large parts
of the market, over the last three decades, by China, and the
consequent vulnerabilities in terms of our economic resilience
and security.
The UK is lagging behind allies in its response to the challenge.
The report finds that the Government’s Critical Minerals Strategy
is too broad and does not convey the sense of urgency and the
need for decisive action if the UK is to compete effectively for
resources and meet net zero commitments.
The Government’s decision not to assess the vulnerabilities and
dependencies in the UK’s industrial supply chains before
producing the Critical Minerals Strategy is met with criticism
from the Committee.
The Committee calls on the Government to publish specific targets
for priority sectors and to provide a more detailed
implementation plan. Without a clear steer from Government, the
UK risks a scattergun approach to 'de-risking' from industry, as
well as ineffective use of the UK's diplomatic leverage, the
Committee says.
Chair of the Foreign Affairs Committee, , said:
“From F35 fighter jets to the batteries in our phones, critical
minerals are the building blocks of many modern technologies.
They are integral to every-day living, the green transition and
our nation’s defence.
“But this reliance has created vulnerability – and in the race
for resources the UK is falling behind. China has strategically
embedded itself in the middle of the critical minerals supply
chain, developing the vast majority of the world’s refining
capacity.
“For three decades we have been asleep at the wheel, repeatedly
failing to recognise the importance of critical minerals and the
dangers of our current reliance on autocratic countries.
“It is particularly clear that we need to confront the weakness
created by our dependency on a single state: China. These
minerals power modern life and if China pulls the plug, we will
all pay the price.
“The Government must be able to provide UK industry, as well as
current and potential trading partners, with a coherent plan to
build critical minerals resilience. We need to move beyond
strategy documents and towards implementation, providing clear
priorities and supporting industry to deliver. We are in a global
competition for technological advantage which we cannot afford to
lose.
“This is primarily about power, not trade. The supply of critical
minerals is more a geopolitical issue than a geological one. The
scale of the challenge ahead of us is huge, but the need to act
now is undeniable.”
