Conservative lawmakers have warned that China's dominant position in the global supply of critical minerals could jeopardize the United Kingdom's defense capabilities, potentially impacting the production of missiles and anti-drone technology. The party asserts that the UK has allowed Beijing to establish a "stranglehold" over materials essential for modern defense systems, as well as for civilian technology like smartphones and electric car batteries.
According to shadow national security minister Alicia Kearns, politically induced shortages of critical minerals such as lithium, cobalt, and nickel are already affecting military operations, citing the conflict in Ukraine as an example. Kearns highlighted an incident last year where China's imposition of export controls on rare earth permanent magnets disrupted global supply chains, exposing Western reliance on these resources across energy, defense, and technology sectors.
"Without a steady supply, a nation’s military cannot fire on all cylinders," Kearns stated, emphasizing that control over critical minerals is now a geopolitical issue, not merely a trade concern. She noted that China accounts for approximately 70% of rare earth mining and 90% of refining, enabling it to potentially manipulate supply chains to influence nations.
Recent efforts by the UK government include a £50 million pledge to boost domestic production and partnerships with allies like the United States and South Korea to diversify supply. However, Kearns criticized the pace of progress, attributing it to government "infighting and chaos." She contrasted the UK's approach with that of its allies, pointing to the US signing 12 new Critical Mineral Partnerships this year, the EU's plans for stockpiling, and France's initiative to increase domestic production.
The UK's own Critical Mineral Strategy, intended to reduce Chinese dominance, aimed for no single nation to control more than 60% of a particular mineral's supply chain. This strategy involves increasing domestic production, stockpiling, recycling, and forging international partnerships. Kearns expressed disappointment with the execution, particularly citing the stalled plans for a rare earth refinery in Yorkshire by UK-listed firm Pensana. The company reportedly abandoned its UK site in favor of the U.S. due to the prospect of significant subsidies offered by the Trump administration.
Kearns also pointed to opportunities missed in partnerships with countries like Chile for lithium and copper, and with Greenland for mineral extraction expertise. She argued that the UK needs to actively pursue such agreements to ensure a consistent supply for batteries, military equipment, and clean energy projects. The current government's "paralysis" and perceived inability to create favorable economic conditions for domestic mining and refining companies are also seen as hindrances, potentially driving away investors and making the UK dependent on allies.
The government has acknowledged the strategic importance of critical minerals, with industry minister Chris McDonald announcing new funding for a rare earth magnet hub, an accelerator program, and a platform to aggregate industry demand. This investment aims to bolster domestic capabilities and reduce reliance on foreign sources, particularly China, which has strategically built its dominance over decades while Western nations opted for cheaper, imported supplies.