Materials Processing Institute advises UK Government on securing national supply of critical minerals
Ahead of the UK Government’s publication of a new Critical Minerals Strategy in 2025, this capability assessment will help to inform the government approach to securing the long-term supply of critical minerals and refine the nation’s approach to UK domestic production.
A new report by Frazer-Nash Consultancy in partnership with the Materials Processing Institute (MPI) and the Critical Minerals Association (CMA) and has been published today assessing the UK’s sovereign capability in critical minerals which are essential to the nation’s economic growth and security, industrial strategy, and clean energy transition. The report was Commissioned by the UK Government’s Department for Business and Trade (DBT).
Demand for critical minerals, such as aluminium, lithium, cobalt and nickel, is at an all-time high because they are needed for electric vehicles, more and bigger artificial intelligence (AI) data centres, wind turbines and solar panels for renewable energy and more robust national power grids. Presently, the UK is reliant on an international supply chain to supply the majority of critical minerals it requires. This international supply chain is dominated by a handful of countries including China and Russia, increasing concerns about supply chain security. The UK’s limited comparative capability to produce critical minerals domestically may constrain its capacity to influence global markets. This creates a situation where the UK is heavily dependent on imported materials to meet its net zero ambitions and energy security requirements.
The report considered the risks and opportunities to develop critical minerals, focusing on midstream processing – any post-mining processing where value is added or materials are upgraded from their virgin mined state – and recycling capability in the UK. Identifying that UK government must act to secure supply chains and deliver economic security to the country, the report made recommendations for government to consider. These were assessed according to impact and four priorities identified. First, centralised support for companies with planning and permitting to enable industrial growth. Secondly, recommendations to facilitate new innovations in processes, technologies or services and accelerate their routes to development, industrialisation and commercialisation. Thirdly, extending the Energy Intensive Industries support scheme, enabling eligible companies to recover up to 30 per cent of their energy costs. Fourthly, amending waste classifications to facilitate a greater volume of available critical mineral rich waste.
Nial Greeves, Director Energy and Infrastructure at Frazer-Nash Consultancy said: “Frazer-Nash is a trusted strategic advisor to the UK Government on energy transition and sustainable infrastructure. The UK is largely dependent on international trade to satisfy its demand for raw materials required for vehicle electrification and renewable energy sources which are at the heart of the nation’s drive to achieving net zero. While recycling can reduce dependence on mined materials, the economics of recovering and recycling critical minerals in the UK don’t currently stack up. Working in partnership with the Critical Minerals Association (CMA) and the Materials Processing Institute (MPI), our report highlights options for UK Government intervention to develop the sovereign capabilities of targeted processing and recycling of the UK’s critical minerals, reducing dependency on international supply with the associated inherent uncertainties and risks.”
Link to full report - https://www.gov.uk/government/publications/uk-critical-minerals-midstream-and-recycling-capability-report
2 April 2025
