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UK found to be ‘dangerously’ reliant on China for critical minerals needed for defence and AI
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A UK parliamentary investigation found Britain “dangerously” dependent on China for critical minerals needed for defence, renewable energy and AI. The business committee urged an urgent centralised policy and a “critical minerals finance facility” to fund rare earth mines and speed diversification. It would deploy grants, equity and debt.
Committee chair Liam Byrne said critical minerals are “the alpha of the new economy.” He warned Britain cannot rearm, build AI or deliver net zero without secure supplies. He noted that 16 years after China first weaponised its rare earth chokehold, the UK remains dangerously exposed.
Bottlenecks are concentrated at processing, with China dominating refining of seven mineral categories. These include refined lithium for electric vehicles and rare earths used in military aircraft fuselages and wings. MPs heard lithium demand would rise 45-fold by 2030, while rare earth demand for military-jet magnets would increase 16-fold.
The report says China can suddenly cut rare earth supplies, as it did in 2025, making dependence a strategic vulnerability for the UK economy and national security. It also cited legacy chip restrictions after a row over Dutch intervention in China-owned Nexperia, which left Europe’s car industry “days away” from stoppages last October. The committee called the dependency high-risk.
The committee warned the UK is at the mercy of US-China relations after Donald Trump secured a rare earth export reprieve extended to January 2027. It called for G7, European and Indo-Pacific cooperation to aggregate demand and attract suppliers. It said Parliament cannot see vulnerable capabilities or backed projects.
The committee criticised limited government transparency and drew up a 10-point plan on domestic mining, refining, recycling and procurement. A government spokesperson denied the no-strategy claim, citing £400m for domestic production and recycling. He said 2035 goals include 10% domestic supply and 20% recycling.
