UK pledges to break China’s dominance over critical mineral supply chains

United Kingdom Energy Minister Chris McDonald has pledged to break China’s dominance over critical net-zero supply chains.

McDonald, who is a joint minister for the Department for Energy Security and Net Zero and the Department for Business and Trade, told POLITICO he is determined to strengthen domestic access to critical minerals.

Critical minerals like lithium and copper are used in key net-zero technologies such as electric vehicles and batteries, as well as in defense assets like F-35 fighter jets.

According to a government critical minerals strategy report published last week, China currently controls 90% of the refining of rare earth elements.

McDonald said China’s dominance in mineral processing risks driving up prices for the net-zero transition.

The UK has made a legally binding commitment to reduce emissions to net zero by 2050.

McDonald is concerned that China has become a “monopoly provider” of critical minerals and that its dominant role in processing gives it the ability to control costs for buyers.

“As part of our industrial strategy, we want to attract this supply chain to the UK,” the minister said. “To do that… we will ultimately have to ensure control of critical minerals rests with a broad group of countries, not just China.”

The government’s critical minerals strategy includes a target that by 2035, no more than 60% of the UK’s total annual demand for critical minerals should be met by a single country.

“Therefore, if an investment comes from China that will help with this, that would be great,” McDonald said. “If it doesn’t help, or if it further complicates a problem that is not aligned with our strategy, we will ultimately make a decision on that basis.”