A new national critical minerals strategy has been brought into light by the UK Government, laying out a plan till 2035. The main focus of this strategy has been on sourcing a steady supply of vital resources like lithium, cobalt, nickel, rare earths and other essential metals, looking towards a better energy transition and digital economy.
{alcircleadd}The "Vision 2035: Critical Minerals Strategy," as documented by the UK Government, sets ambitious goals for the next decade. In this document, the country aims to cover at least 10 per cent of its domestic demand through local production and an additional 20 per cent through recycling. This has been decided to ensure a cut-down reliance on the international suppliers. Nearly 60 per cent of the country's demand for any critical mineral will be coming from a single country of origin.
The strategy further aims to turn the vulnerabilities into opportunities, which shall be done by tapping into the UK's strengths, which lie in midstream processing, recycling and finance. Apart from this, the strategy will also look at mineral-rich areas like Cornwall, Teesside and parts of Wales and Scotland. The total funding for implementing this strategic shift includes EUR 50 million (USD ), kept aside mainly for the critical minerals initiatives by the country.
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Current priorities of the strategy
There are mainly three fundamental pillars ruled by the UK Government within the document, which include:
1) Ensuring a smoother supply chain to remain strong despite geopolitical tensions and global competition
2) Supporting national mining initiatives, starting from the exploration phase to the last, which is refining
3) Advancing recycling and the circular economy for critical minerals to lessen environmental impact.
Development of these pillars within the document has been incorporated for a greater effort, focusing on enhancing economic, industrial and energy security, where the importance of controlling materials is deemed to rise.
Different minds but same goal
The document and the strategy within have been drafted and implemented by various government agencies, which also include the Department for Business and Trade, the Ministry of Defence, UK Export Finance and the Office for Investment. In addition to this, the goal is deemed achievable after gaining support from research institutions like the British Geological Survey, the University of Exeter and the Critical Minerals Intelligence Centre.
At the private level, the country is undertaking, at present, more than 50 projects related to critical minerals. Companies like Cornish Lithium, Altilium and Green Lithium are taking the lead in extraction, recycling, and technological advancements.
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Hinting at national security
The need for a strategy by the country itself has been accelerated mainly due to the international context, mainly because of the rising demand for these critical minerals. Moreover, there are a lot of supplies that are turned towards countries like China, which raises the potential risk of a shortage in sourcing.
In order to tackle the shortage before it rises, the UK has joined hands with Canada, Australia, the United States, India, Japan, and the European Union to form a strategic partnership. These countries are deemed to be involved in multilateral discussions through platforms like the G7, the International Energy Agency, and the Minerals Security Partnership.
London: The key financial aid
Keeping the production aside, the UK government has also highlighted the pressing role of London, which will be acting as the global financial centre in terms of metal trading. Institutions like the London Metal Exchange (LME) and the London Stock Exchange (LSE) will be assisting by providing financing options and risk management strategies. Additionally, it is expected to witness a good rise in the financial instruments, which will be directly tied to materials such as lithium, cobalt and rare earths.
Future with cleaner energies
The new strategy developed for the decade, the UK government emphasises good control over the critical natural resources, which not only have economic issues, but are also subject to technological and geopolitical ones as well.
With the newly developed Vision for 2035, the UK government is focusing on protecting its supply chains as well as on positioning itself as a leader in the global shift towards a low-carbon economy by strengthening its industrial and scientific foundations.
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