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Britain announces a critical minerals strategy in order to reduce reliance on external supply

Britain announces a critical minerals strategy in order to reduce reliance on external supply
Britain announces a critical minerals strategy in order to reduce reliance on external supply

The government announced that Britain has launched a new critical minerals strategy to reduce its dependence on foreign suppliers. By 2035, it aims to supply 10% of the domestic demand with UK-produced materials and 20% through recycling.

The strategy, which is backed by new funding of up to 50 millions pounds, aims to ensure that no more than 60 percent of UK supply of any critical mineral will come from one country by 2035.

In a statement, British Prime Minister Keir starmer stated that critical minerals are "the backbone of modern living and our national safety." He argued that increasing domestic production and recycling could help protect the economy and assist efforts to reduce living costs.

The UK government stated that the country currently produces only 6% of their critical mineral requirements domestically. The plan aims to increase domestic extraction and processing with a focus on lithium and nickel. It wants to produce 50,000 tonnes or more of lithium in the UK before 2035.

The UK faces an urgent demand for a long-term, secure supply of minerals such as copper, nickel and lithium, which are vital for electric vehicles, smartphones, and data centers, and are increasingly important for artificial intelligence.

The British government has said that the demand for materials essential to Britain is increasing rapidly. By 2035, copper consumption will nearly double, and lithium demand will increase by 1,100%.

China's strategy highlights its grip on vital mineral supplies. This leaves the sector vulnerable to price fluctuations, geopolitical tensions and sudden interruptions. Britain pointed out that China controls about 70% of rare-earth mining and 90% refining. This dominance puts countries like the UK at risk.

In the early part of this year, Britain signed a deal to cooperate on minerals with Saudi Arabia. The aim was to improve supply chains, open doors for British companies, and attract new investment. (Reporting and editing by Chris Reese in Bengaluru, Mrinmay dey from Bengaluru)

(source: Reuters)