FTI Consulting UK Public Affairs Snapshot: 2025 will be a decisive year for Britain’s critical minerals approach

Critical minerals play an essential role in various areas of industry. Whether it be the use of zinc in onshore and offshore wind turbines, nickel in nuclear power or rare earth elements in radar, lasers and communication systems, these resources are key to advancing renewable energy, modern technology and critical infrastructure more broadly. 

While there is no universal definition of what constitutes a critical mineral, governments around the world have designated and refined their own lists of raw materials considered critical to the functioning of their own economies and societies. 

Britain’s own list was last updated in 2024 by the Critical Minerals Intelligence Centre (CMIC), a centre sponsored by the Department for Business and Trade which monitors the supply, demand and market dynamics of critical minerals. 

Despite their importance to the country’s economic and national security, it was not until July 2022 that a coordinated strategy to protect Britain’s critical minerals dependencies was published. This set out the approach that the then-Conservative government intended to take to “accelerate the growth of the UK’s domestic capabilities, collaborate with international partners and enhance international markets”. 

The strategy marked a watershed moment in the British government recognising access to critical minerals as a distinct policy area in its own right, rather than a disparate component of many.  

However, in December 2023, the House of Commons Foreign Affairs Committee published a report on Britain’s standing in the critical minerals space, asserting the 2022 critical minerals strategy was “too broad” and did 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”.  

Action taken in its early days suggests that the new Labour government is ready to take the action necessary to strengthen Britain’s position in critical minerals production. 

In October 2024, the Chancellor of the Exchequer, Rachel Reeves, granted UK Export Finance (UKEF) the power to provide financial support to British companies supplying critical minerals to UK exporters in high-growth sectors such as EV battery production, aerospace, and defence. 

The news was warmly received across industry, with Sean Sargent, CEO of Green Lithium, stating that the new export finance offering from UKEF is “precisely the sort of initiative that will help UK businesses strengthen relationships with international partners”.   

The publication of the new critical minerals strategy is expected at the same time as the publication of the government’s industrial strategy this spring. 

The fact the government is publishing a new strategy illustrates in itself its desire to set a distinct course of progress regarding critical minerals, a reset moment which will perhaps be guided more than anything by ongoing trade disputes. 

Critical minerals must also be seen as a vital component of the industrial strategy. Britain’s ability to maximise its domestic supply of minerals and metals for renewable energy use could be vital to the government’s long-term ambition of reaching net zero. 

Securing a domestic supply of these minerals would also support British innovation, manufacturing and even housebuilding ambitions, which all in turn can support economic growth.  

Despite the prioritisation the government has given to critical minerals, one underlying concern the government will have to deal with is ongoing geopolitical tension. In a world that appears more dangerous than it has been in a generation, critical minerals are simultaneously becoming ever more fundamental to the technology that underpins Britain’s national security. 

This threat was highlighted in the CMIC’s recent criticality assessment recommendations. The assessment asserted that Britain needed to continue to “build international trade partnerships to reduce the risks and impacts of trade barriers”. Failure to do so would pose both an economic and national security risk.  

The UK already has several advantages in mining and minerals. It holds economically viable sources of lithium, tin and tungsten, all of which are subject to proposals to exploit and scale. Britain is a leading developer of refinement technology, such as the low-emission lithium hydroxide demonstration plant in Cornwall, vital to realising the economic potential of mining deposits. 

World leading multinational mining conglomerates are also headquartered in London, the world centre for the trading of industrial metals. There is also an opportunity for Britain to continue being leading on ESG standards.  

A recent report published by the Royal United Services Institute (RUSI) highlights a further key opportunity for the UK. While acknowledging that Britain is not a major mineral producer, the report emphasised its unparalleled strength in facilitating large-scale international transactions.  

It goes on to say that this is due to the City of London’s “historical financial pedigree and offering of advanced professional service providers”.  

While the 2025 critical minerals strategy will be a telling sign of the future direction of this policy area under the new government, the financial support already provided by UKEF offers an encouraging start. 

It signifies Britain’s intention to continue to invest in a framework to maximise the benefits a secure critical mineral supply chain could bring. The government has shown critical minerals to be a priority, but the UK cannot rest on its laurels, as there is still much to be done if it wants to strengthen its position.