Committee publication · Correspondence · 23 June 2026
Letter from the Minister for Industry relating to the Committee's letter of the 1 June requesting further information on critical minerals, 15 June 2026
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: Critical minerals
Summary
Minister for Industry Chris McDonald responds to the Business and Trade Committee's 1 June letter requesting clarification on critical minerals strategy. The response provides specific figures on lithium demand (339,160 tonnes by 2035), lists 17 bilateral agreements and multilateral forum memberships, outlines domestic opportunities in mining, refining and recycling, details funding for lithium projects (£55m to Cornish Lithium, £631k to Green Lithium), and explains government's role as convenor rather than decision-maker for commercial projects.
Key findings
- Accurate 2035 UK lithium demand projection is 339,160 tonnes, not 399,200 tonnes; government targets 50,000 tonnes from domestic production and 20% of total demand from recycling by 2035.
- Government has signed 17 bilateral agreements and memoranda of understanding on critical minerals with US, Australia, Canada, France, Germany, India, Indonesia, Japan, Kazakhstan, Kyrgyzstan, Mongolia, New Zealand, South Africa, South Korea, and Zambia, plus participation in FORGE, Pax Silica, and RESourceEU.
- Up to £50 million funding available post-Spending Review for critical minerals projects, with specific allocations including £55m equity investment to Cornish Lithium, £2.141m to Imerys British Lithium, and £764k to Cornwall Resources; lithium projects in Devon, Cornwall, and North East have timelines ranging from 2026 to 2029.
- Tungsten refining capability is limited; government conducting cross-departmental assessment of domestic APT production viability with Ministry of Defence and DESNZ; no funding currently awarded but £764k granted to tungsten mining pre-feasibility.
- Government acknowledges continued reliance on international partners for graphite and gallium; strategy emphasises bilateral partnerships, trade agreements, and multilateral engagement to diversify sustainable supply chains rather than full domestic self-sufficiency.
Tone
FactualTopics
Key actors
Chris McDonald MP, Liam Byrne MP, Cornish Lithium, Imerys British Lithium, Green Lithium, Tees Valley Lithium, Geothermal Engineering Ltd, Department for Business and Trade
Notable line
“… the UK does not seek to replicate large-scale mining seen in resource-rich countries, but instead to support targeted domestic production as part of a broader supply mix.”
Key Quotes
“The Government's role is to create the conditions for investment and growth across these areas, working with public finance institutions and other departments; the Department for Business and Trade is a key convenor but is not the sole decision-maker nor responsible for individual project outcomes.”
“… the UK does not seek to replicate large-scale mining seen in resource-rich countries, but instead to support targeted domestic production as part of a broader supply mix.”
“… critical mineral supply chains are global. The Strategy sets out the UK's commitment to work as a trusted partner to secure more diverse, sustainable and responsible critical mineral supply chains.”
“Multilateral forums are essential to driving investment into new, diverse supply chains, creating stronger markets, and promoting high standards.”
“Currently, there are no plans for domestic APT production, although DBT is working with other departments such as the Ministry of Defence and the Department for Energy Security and Net Zero to explore the economic and strategic benefits of domestic tungsten refining.”
Source · parliament.uk record ↗