MPs Sound Alarm Over U.K.’s Reliance on China for Critical Minerals

A recent report from the United Kingdom's Parliament has highlighted the country's alarming dependence on China for critical minerals essential to its military, renewable energy infrastructure, and artificial intelligence industries. The investigation identified bottlenecks in processing seven types of minerals, including refined lithium for electric vehicles and rare earths used in military aircraft.

Demand for lithium in the U.K. is projected to increase 45-fold by 2030, while demand for rare earths used in military jets could rise by 16-fold.

China controls about a quarter of the world's lithium mining capacity and over two-thirds of the world's cobalt and lithium processing capacity. This dependency has become increasingly vulnerable due to China's recent export control measures, such as the rare earth export restrictions implemented in 2025. The report estimates that establishing secure and reliable alternative sources for critical minerals will take 10-15 years, requiring consistent commitment from governments, industry stakeholders, and G7 nations.

However, the investigation revealed a significant obstacle to achieving this goal: the U.K.'s lack of transparency regarding the government's efforts to address the issue. Parliament does not have visibility into the capabilities being protected, the identified vulnerabilities, or the projects being undertaken to mitigate risk. Consequently, Parliament cannot be confident in a robust plan or the pace of progress required for the UK's economic security.

To address this, the report calls for a more coordinated institutional approach to securing the U.K.'s critical mineral supply chains. This would entail establishing a Critical Minerals Finance Facility, which would bring together financial institutions to provide grants, equity, debt, and guarantees to accelerate necessary projects.