Britain has published a Critical Minerals Strategy that sets clear, measurable targets for 2035: meet at least 10% of annual demand from UK production, source 20% from recycling, and cap exposure so no more than 60% of supply (in aggregate) comes from any single country. The plan includes up to £50 million for projects and a goal to produce at least 50,000 tonnes of lithium (or lithium carbonate equivalent) domestically by 2035.

Why this matters for the climate transition is straightforward: electric vehicles, wind turbines and grid storage need a lot more metal. The International Energy Agency projects lithium demand could grow roughly eightfold by 2040 in a 1.5°C-aligned pathway, with copper up 50% and rare earths doubling. Today, China accounts for about 60% of rare earth mining, around 91% of refining, and roughly 94% of sintered permanent magnet output, leaving supply chains vulnerable to shocks.

The strategy’s strongest green lever is the 20% recycling ambition. IEA analysis finds recycled nickel, cobalt and lithium can cut associated greenhouse gas emissions by about 80% compared with primary production, and with strong collection rates, battery recycling could meet 20–30% of global demand for these metals by 2050. The UK’s pledge aligns with Europe’s own benchmark to meet 25% of demand from recycling by 2030 under the Critical Raw Materials Act.

The Government points to domestic strengths it can scale: Cornwall’s lithium resources, a major nickel refinery at Clydach in Swansea, and rare earth alloy production in Cheshire. The National Wealth Fund’s recent commitment of up to £31 million to Cornish Lithium aims to take Trelavour towards a construction decision and to advance geothermal lithium drilling at Cross Lanes-early steps in turning UK resources into battery-grade chemicals.

On rare earth magnets-the tiny components that make EV motors and wind turbines efficient-the UK is already moving from pilot to production. The University of Birmingham and HyProMag have restarted commercial-scale magnet manufacturing from recycled feedstock for the first time in over 20 years, using HPMS technology that university data suggests can save about 88% of energy and 98% of human toxicity impacts versus primary routes. Commercial scale-up is underway.

Northern Ireland adds a second recycling pillar. In Belfast, Ionic Technologies-spun out of Queen’s University Belfast-operates a demonstration plant that processes about 30 tonnes of spent magnets a year and has published plans for an industrial facility targeting 400 tonnes of separated rare earth oxides annually. That would create a UK source of the high-purity neodymium, praseodymium, dysprosium and terbium needed for magnets in EVs and turbines.

Midstream capacity is also critical. Less Common Metals in Cheshire-one of the few Western producers of rare earth metals and alloys-plans expansion alongside a new project in France, and was recently cleared for acquisition by USA Rare Earth to build a mine‑to‑magnet chain outside China. Keeping and growing this capability on UK soil matters for both energy and defence supply chains.

Cost remains a barrier to onshoring processing. Ministers intend to ease that with the British Industrial Competitiveness Scheme (from 2027) and a 90% discount on network charges for the most energy‑intensive firms from 2026 via the British Industry Supercharger. A consultation on BICS eligibility is due, with the goal of bringing industrial power costs closer to EU peers and supporting low‑carbon processing.

Resilience is the thread running through the plan. The 60% single‑country cap mirrors Europe’s diversification rule of 65% and sits alongside NATO work on joint acquisition and stockpiling of defence‑critical raw materials-including magnets and battery inputs-to reduce exposure to sudden export restrictions or conflict‑related disruption.

The Government cites rising UK demand-copper use nearly doubling and lithium needs up by 1,100% by 2035-and the reality that only 6% of current critical mineral needs are met domestically. Closing that gap will take faster permitting, stable offtake agreements, and strict environmental standards so new projects deliver materials with credible, audited footprints.

For manufacturers, the near‑term wins are practical: lock in recycled content through offtake with UK recyclers; design motors and battery packs with disassembly and labelling in mind; and set up take‑back schemes so end‑of‑life volumes actually reach recyclers. IEA guidance stresses that better collection, smart product design and harmonised rules on cross‑border battery movements are pivotal to hitting recycling targets.

There are headwinds-price swings, long permitting timelines and the rapid shift to LFP battery chemistries that changes recycling economics-but the direction is set. With targeted public finance, lower industrial power costs and a growing recycling base in Birmingham and Belfast, the UK can turn more of its mineral demand into a circular, home‑grown supply by the early 2030s. The new targets put a clock on making it happen.