UK 2035 critical minerals strategy targets domestic output and import diversification

UK, Critical Minerals

UK 2035 critical minerals strategy sets binding-style goals for supply resilience. The UK wants 10% of annual critical mineral demand met by domestic production by 2035. Meanwhile, the UK 2035 critical minerals strategy also targets no more than 60% of supply from one country.

The plan introduces a UK growth minerals list to guide investment priorities. Most of the 23 “growth minerals” also qualify as critical due to supply risk and end-use exposure. Therefore, projects that mine, process, or recycle minerals in the overlap can access tailored public support.

Faster funding and faster permits reshape the project pipeline

The UK 2035 critical minerals strategy expands state-backed finance to accelerate bankable projects. The government will channel support through UK Export Finance and a new £50mn critical mineral fund. Meanwhile, the Environment Agency will fast-track permitting and licensing for eligible projects.

This approach aims to shorten lead times across mining, processing, and recycling. However, accelerated permitting only helps if developers can still secure offtakes and equity. As a result, investors will likely favor projects with clear downstream demand signals.

Recycling and lithium targets test execution realism

The government sets a UK critical mineral recycling target of 20% of demand met from recycled products. The strategy also points to existing domestic facilities in platinum group metals, rare earth elements, and lithium. Therefore, policy makers expect recycling rules and trade provisions to close part of the gap.

The plan also targets 50,000 t/yr of domestic lithium production. However, recent project decisions highlight capital competition with allied markets. As a result, the UK will need stronger commercial incentives to keep high-value midstream capacity at home.

The strategy also backs industry-led stockpiles for the Ministry of Defence. Meanwhile, allied economies already move toward stockpiling and tighter critical mineral controls. Therefore, companies should expect more procurement-linked demand for verified, low-risk supply.

The Metalnomist Commentary

This strategy reads like a race between permitting speed and global subsidy intensity. However, the UK must anchor midstream projects with larger offtake and financing packages. Therefore, the winners will pair domestic policy support with export-aligned demand and recycling scale.