Today I am announcing the scope of the Government’s new £50 million critical minerals programme, first announced in the UK’s critical minerals strategy last year. In line with the strategy, this programme will help strengthen the UK’s supply chain resilience and security and support economic growth across the UK.Column 3WSis located here
Critical minerals are essential to modern industry and to many of the growth-driving sectors identified in the industrial strategy, including clean energy, advanced manufacturing and defence. The Government’s strategy sets out clear ambitions to increase domestic production of critical minerals, boost recycling, and reduce our dependence on concentrated international critical mineral supply chains. This new programme is an important part of delivering against our ambitions and will complement wider Government support, including through the National Wealth Fund, UK Export Finance and other existing funding routes, as well as more competitive energy costs and streamlined planning and permitting to support industry.
The programme is structured around three pillars. First, we will provide up to £20 million for a magnet hub to establish a national facility to develop and support the scale-up of rare earth permanent magnet manufacturing capability in the UK, while also supporting skills and training in this specialised and crucial field. Secondly, we will provide up to £25 million through a critical minerals accelerator to support collaborative projects across extraction, processing and recycling of critical minerals, helping innovative businesses move towards commercial scale. Thirdly, we will take forward a demand aggregation platform, designed to help industry consolidate demand, unlock investment and secure supply through strategic partnerships.
Taken together, these measures will help grow domestic capability and optimise domestic production across the UK critical minerals value chain, harnessing our competitive advantage in recycling and midstream processing alongside our distinct pockets of mineral wealth. The programme aims to accelerate commercialisation, create high-value jobs, and attract investment in areas where the UK has these competitive strengths.
Further programme details and guidance will be published on gov.uk as the individual pillars open and progress. The magnet hub competition will be launched first, followed by the critical minerals accelerator, and market engagement on the demand aggregation platform later in the summer.
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