UK offers unique strength for securing critical mineral supply

London's reputation as the global financial capital for critical minerals is the UK's biggest advantage over other countries and trade blocs also wishing to encourage investment in critical raw materials

Conference attendees learned about the UK’s key position in the supply of key materials at the inaugural London Indaba conference on Monday June 26.

The UK strengthening its partnership with Africa is a vital priority to secure the critical minerals it needs across a supply chain that must be transparent, Nusrat Ghani MP, UK Minister for the Department for Business and Trade, said during a keynote speech.

“We have financial expertise and relationships with Africa in London that is lacking in the United States… This technology and innovation leadership is what will help the UK the most in this strategy,” Ghani said.

The UK announced its Critical Minerals Strategy in July 2022 aimed at improving the resilience of 18 minerals deemed ‘critical’ to safeguard British industry. An updated policy paper was published in March 2023 which refreshed the UK government’s approach to secure long-term supply of critical minerals.

Ghani admitted that the Inflation Reduction Act (IRA) signed by US President Joe Biden in 2022 had brought challenges to the UK’s strategy, however she hoped for cross-collaboration between the two countries to ensure supply security.

“The IRA distorts supply chains between the US and China, it’s been a huge challenge, many multinational companies have had issues because the lure of the United States is so huge now.”

The finance incentives provided by the IRA and the EU’s Critical Raw Materials Act (CRMA) have encouraged businesses to re-examine investment opportunities in the respective regions to take advantage of the funding provided. An issue that Ghani felt the UK could not compete with on a purely funding basis.

“No one will have pockets as deep as the United States and the EU, every nation wants to protect its own manufacturing capabilities, so we as the UK must set up alignment with other regions,” she said.

Ghani also highlighted the need for transparency in investment into Africa whilst also wanting to avoid penalizing developing countries for “trying to do the right thing”.

Asked what the UK can do to help African countries become better investment opportunities, Ghani felt supply chain transparency is key.

“[Transparency] is the big engagement for investment, reducing corruption and improving accountability… high [Environmental, Social and Governance] scores really do matter here but we must walk before we can run.”

Keep up to date with global market insights and predictions for 2023 and beyond with our NewGen forecasts.

What to read next
Fastmarkets has partnered with the Intercontinental Exchange (ICE) to launch a series of cash-settled lithium, spodumene and cobalt futures contracts that will be settled against Fastmarkets assessments.
How much Canadian aluminium is being diverted from the US to Europe, when will it arrive and what impact will it have on premiums? The market appears to be split, but that could all change at the end of June, sources told Fastmarkets in the week to Thursday April 17.
Sentiment was markedly lower during Shanghai Pulp Week 2025, standing in contrast to the bullish attitudes from a year prior. We focus on three main takeaways from our interactions with industry participants last week and conclude that a wait-and-see approach is likely to remain the dominant pattern in the short run. Key takeaways: US-Canada trade […]
A1 Lithium, a US-based subsidiary of Anson Resources, is advancing its Paradox Lithium Project in Utah to capitalize on North America's growing lithium demand, leveraging a partnership with Fastmarkets and support from the US Supply Chain Resiliency Initiative.
Tariffs are creating a short-term period of volatility, but are not shifting conviction on the long-term fundamentals of the copper market, the chief executive officer of Rio Tinto Copper has said
Producers of copper appear to be adopting the public mantra of “keep calm and carry on” while trade tensions escalate. But this belies an underlying mood of concern that not just they, but the wider industry, has assumed