The International Energy Agency (IEA) forecasts that by 2040, the demand for rare earth elements could be seven times greater than in 2020, and the demand for cobalt could be 20 times greater. This surge in demand underscores the importance of securing a stable supply of these minerals to support the energy transition.
To fuel the country’s energy transition and meet our net zero targets, demand for a wide range of lesser-known minerals, collectively known as critical minerals, used in clean technologies is forecast to increase.
What are critical minerals
Critical minerals are essential for the economy but whose supply may be at risk due to various factors. The UK’s Critical Mineral Strategy defines critical minerals based on their high economic vulnerability and high global supply risk. Currently 15 critical minerals are identified including lithium, cobalt, palladium, tin, tungsten and platinum.
Currently, most of these minerals are extracted in countries such as the Democratic Republic of Congo (DRC) before being transported for refinement and processing in China. However, in the face of both increasing concern about the ethical nature of mining practices in the DRC (Amnesty International 2023) and increased concern around over-reliance on global supply chains, the UK government published ‘Resilience for the Future: The United Kingdom’s Critical Mineral Strategy’ in 2022.
Why Are Critical Minerals Important?
Rare earth elements are crucial for manufacturing wind turbines, while cobalt is a key component in electric vehicle batteries. As the demand for these technologies grows, so does the need for these minerals.
The UK’s Strategy for Securing Critical Minerals
To reduce economic vulnerability and minimise global supply risk, the UK’s Critical Mineral Strategy aims to:
- Accelerate Domestic Capabilities: This involves maximising domestic production and promoting a circular economy for critical minerals. By enhancing domestic capabilities, the UK can reduce its reliance on imports and ensure a more stable supply.
- Collaborate with International Partners: By working with international partners, the UK aims to diversify its supply sources, lessening reliance on any single producer. This collaboration can help mitigate risks associated with geopolitical tensions and supply chain disruptions.
- Enhance International Markets: The strategy also focuses on boosting Environmental, Social, and Governance (ESG) performance and transparency in the supply chain. This ensures that the extraction and processing of critical minerals are done sustainably and ethically.
Identifying Potential Domestic Sources
The Critical Minerals Intelligence Centre (CMIC), in collaboration with the British Geological Survey (BGS), has identified potential areas for critical mineral extraction across the UK. These areas include regions in Scotland, Northern Ireland, Wales, and England. However, further geological investigations are needed to confirm the presence and commercial viability of these minerals.
While these areas represent opportunities for the mining industry in the UK, it is merely the first step in increasing domestic production of critical minerals. There’s no guarantee that these areas contain critical minerals in sufficient concentrations to make extraction commercially viable. Additionally, the extraction must be done with minimal impact on local communities and the natural environment so it is likely mining companies will be required to develop new extraction and processing techniques.
Conclusion
Critical minerals are essential for the UK’s energy transition and achieving net zero targets. There are a number of ongoing projects in the UK, which suggest there is plenty of support for the development of our domestic critical mineral supply chain. This includes a £28.6 million investment from the government’s National Wealth Fund into reviving a Cornish tin mine.
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