By Fatma Younis
The UK is "dangerously" dependent on China for critical raw materials essential for military capabilities, renewable energy infrastructure and artificial intelligence, a parliamentary investigation has found.
The House of Commons business select committee urged the government to adopt an urgent centralised policy and create a "critical minerals finance facility" to fund mines and accelerate diversification.
Committee calls for centralized policy
Committee chair Liam Byrne said critical minerals are "the alpha of the new economy" and warned that Britain cannot rearm, build AI or deliver net zero without securing the minerals those technologies require. He noted that 16 years after China first weaponised its chokehold over rare earths, the UK remains dangerously exposed.
China's dominance in refining
China controls the world's supply of rare earths and other critical minerals, as well as the refined byproducts used in military jets, electric vehicles and consumer appliances. The committee heard that the processing stage is the main bottleneck, with China dominating the refining of seven mineral categories, including lithium for EV batteries and rare earths for aircraft components that withstand extreme temperatures.
Rising demand and strategic risks
Demand for lithium alone is projected to increase 45-fold by 2030, while rare earths needed for permanent magnets in military jets could rise 16-fold. The committee warned that China's ability to suddenly cut supplies, as it did in 2025, creates a strategic vulnerability for the UK economy and national security. Similar risks face the EU and US, and the UK is not doing enough to secure alternative sources.
Government response
A government spokesperson denied lacking a critical minerals strategy, citing £400m to ramp up domestic production and recycling and forge new international partnerships. The strategy sets 2035 targets of meeting 10% of demand through domestic production, 20% through recycling, and limiting reliance on any single country to no more than 60% for any critical mineral.
