Britain needs to reduce its dependence on China for critical minerals, an influential think tank has concluded ahead of a government strategic decision this spring.
in report When it comes to rare earth minerals, a vital component of high-tech products from mobile phones to missiles, Labor says ministers should build partnerships with other countries to “de-risk” supply chains and reduce dependence on China. said.
The report said China's dominance in key mineral supply chains was creating “vulnerabilities” and increasing the risk of Britain becoming isolated after leaving the EU.
Earlier this month, China banned shipments of antimony, gallium and germanium to the country as trade tensions with the United States escalated ahead of President Donald Trump's inauguration.
The UK government has announced that it will develop a new strategy for critical minerals in the spring. Labor said this will be closely informed by the government's industrial strategy, also due in the spring, to decide which critical minerals and stages of the supply chain the UK will most rely on in the future. said that it should be done.
Key minerals are essential to the green transition. Data shows that China mines about 70% of the world's rare earth metal ore, monopolizes its processing and refining, and accounts for 90% of the world's supply of neodymium magnets, the magnets most commonly used in wind turbines. It is used in manufacturing.
The report also said it was important for China to “engage as much as possible, including on mining standards, rather than treating them as an adversary.” paper In October, the Royal Service Institute think tank said Britain should work with China to improve environmental and labor practices in mines and work with Chinese companies operating in countries receiving international aid.
Labor said the government should strengthen inter-Whitehall coordination on critical minerals, work more closely with the EU, promote responsible mining standards internationally and lead a campaign to boost investment.
The Conservative Party announced its Critical Minerals Strategy in 2022, but the Foreign Affairs Committee said it was “too broad to convey a sense of urgency.'' Alicia Kearns, Conservative party chair at the time, said the government had been “drowsy at the wheel” for 30 years.
Labor said the Conservatives' approach was “too slow, too general and offers too little support”. Félix Casale, a policy researcher at the think tank and an author of the report, said: “The new government should be more wary of risks such as concentrating production in countries like China than the previous one. At the same time, we must take a pragmatic and targeted approach.” new strategy.
“This should focus on the key issues that matter to the UK, including working more closely with international partners such as the EU to increase responsible investment in resilient supplies. This is an opportunity to secure the materials we need for growth, security and green ambitions.”
Ruby Osman, a China policy adviser at the Tony Blair Institute, said ministers needed to prepare for disruption if restrictions on critical mineral exports targeted at the US were extended to the UK.
“When it comes to China, our biggest issue is timing. China has built up impressive market power for decades, while the UK has just announced its first major minerals strategy for 2022. “Osman said.
“Unsurprisingly, diversification is likely to be at the heart of Labour's new strategy. But the UK's strategy also needs to be realistic: how dominant is China at every stage of these supply chains? Even if the UK wanted to, it would never be able to completely exclude China, and that would mean a considered engagement. do.”
Following the conflict, China introduced a ban on the export of rare earth elements to Japan in 2010. The crackdown lasted only two months, but led Japan to diversify its supply chain and become less dependent on China.
