UK dangerously reliant on China for critical minerals, MPs find

A parliamentary investigation has concluded that the UK is “dangerously” dependent on China for critical raw materials essential for the military, renewable energy infrastructure and artificial intelligence. Members of Parliament on the business select committee have called for the urgent implementation of a centralised policy and the establishment of a “critical minerals finance facility” to support rare earth and critical mineral mines. This facility would provide grants, equity and debt to help accelerate a diversification programme.

“Critical minerals are the alpha of the new economy,” stated Liam Byrne, the chair of the committee. “We cannot rearm Britain, build AI or deliver net zero unless we secure the minerals these technologies depend on. Yet 16 years after China first weaponised its chokehold over rare earths, Britain remains dangerously exposed.” This report marks the second time within a single week that the government’s policy regarding China has faced criticism from Mr Byrne’s committee.

China maintains a stranglehold on the global supply of rare earths and critical minerals, alongside the refined byproducts required for items ranging from military jets and car-locking systems to household appliances like fridges and washing machines. The committee learned that the processing stage represents a major bottleneck, with China dominating the refining of seven mineral categories. This includes refined lithium for electric vehicles and rare earths used in the fuselage and wings of military aircraft to endure temperature extremes.

MPs were informed that demand for lithium is projected to rise 45-fold by 2030, placing the UK in a high-risk dependency relationship with China. Furthermore, demand for rare earths used in permanent magnets for military jets and other applications is expected to increase 16-fold during the same period as Britain works to rebuild its military capabilities. The committee found that because China can suddenly cease rare earth supplies, as it did in 2025, reliance on Beijing remains a strategic vulnerability for both national security and the UK economy.

Last October, separate restrictions on legacy chips following a dispute over Dutch intervention in the China-owned Nexperia left the European automotive industry mere “days away” from production stoppages. The committee noted that the EU, the US and other nations face identical risks regarding potential supply cuts from China, and argued that the UK is failing to put enough effort into identifying alternative sources. Although Donald Trump secured a one-year reprieve on global export restrictions on rare earths from Xi Jinping last October, which was later extended to January 2027 following the Chinese president’s visit to Washington, the report suggests the UK remains at the mercy of US-China relations.

The committee suggested the most “realistic” solution involves the UK working closely with G7 partners, other European nations and Indo-Pacific countries to “aggregate demand” and attract new suppliers. However, the committee noted that its investigation was hindered by a lack of transparency from the government. “Parliament has no visibility of the capabilities the government is seeking to protect, the vulnerabilities it has identified, or the projects it is backing to reduce risk,” the report stated.

To address these issues, the committee has proposed a 10-point plan. This includes identifying domestic mining, refining and recycling opportunities alongside their costs, creating a strategy to encourage businesses to reduce procurement from China, unlocking investment and assessing planning and permitting processes that could act as barriers to mining. The committee concluded that it could not be confident the government could satisfy any of its 10 tests as things currently stand. “The UK requires new institutional and financial muscle,” it said.

A government spokesperson rejected the claim that it lacked a critical minerals strategy, stating that it is delivering £400m “to ramp up domestic production and recycling” and forge new international partnerships. “Our strategy also sets clear goals for 2035, including meeting 10% of demand through domestic production and 20% through recycling, with no more than 60% of any critical minerals coming from any single country,” the spokesperson added.