Critical minerals finance facility needed to derisk UK supply chain, says parliamentary committee
The Business, Innovation, Science and Trade Committee (BIST) warns the UK remains dangerously exposed to economic coercion, specifically from China.
The UK cannot re-arm, deliver net-zero, or build the artificial intelligence infrastructure needed without securing critical mineral supplies, says the BIST.
The Committee calls for a five-part plan to 'precision de-risk' Britain's most dangerous dependencies:
- Prioritise sovereign capabilities where dependence on China poses unacceptable risks.
- Forecast demand by combining government and industry intelligence on minerals.
- Maximise domestic mining, processing and recycling, modernising geological surveys, cutting energy costs and incentivising onshore recycling.
- Establish allied 'buyers' clubs to share the costs of new mines and smelters.
- Create a Critical Minerals Finance Facility, bringing together Britain's public finance institutions to finance strategic projects through equity, loans, long-term offtake agreements and price floors.
The Committee also recommends freeing British International Investment to take equity stakes in overseas mining projects and widening UK Export Finance's mandate to support economic security.
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