The House of Commons Business, Innovation, Science and Trade Sub-Committee on Economic Security, Arms and Export Controls wants a public facility to finance critical-mineral projects and reduce supply-chain risks.
In a report published Nov. 5, the subcommittee said it could not confirm that the government met any of 10 tests spanning supply exposure, domestic capability and project financing.
Its proposed Critical Minerals Finance Facility would combine resources from UK Research and Innovation, British International Investment, UK Export Finance and the National Wealth Fund. It would direct grants, equity, debt, guarantees and long-term offtake agreements to strategic projects in Britain and abroad. The report also proposed price-floor arrangements and a link to the Supply Chain Centre.
The recommendation responds to gaps in public financing for early-stage mining, refining and recycling, alongside hurdles that make projects costly and slow to build, the report said. Outside Northern Ireland and South West England, the UK lacks modern geophysical coverage, leaving much of its mineral knowledge based on historical mining records. High energy costs can make processing uneconomic, while planning and permitting delays add to development timelines.
The panel said 80% of metal products in the UK classified as waste are exported. It said building more diversified supply will take years and argued that cutting all ties with China would be impractical. The committee urged allied governments to pool demand and help finance alternative sources. It also said Chinese export restrictions in 2025 affected manufacturers beyond the group they were aimed at.
The report follows the subcommittee’s earlier push for a risk-based approach to China trade. The Guardian reported that a government spokesperson disputed the claim that the UK lacks a minerals strategy and said £400 million was being directed to domestic production, recycling and international partnerships.
The government’s published 2035 targets call for domestic production to meet 10% of annual demand and recycling to supply 20%; no single country would provide more than 60% of the UK’s aggregate annual demand for critical minerals. The committee also called for ministers to release the Circular Economy Growth Plan, which it said had not been published by September 2026.
