A comprehensive assessment commissioned by the UK government’s Department for Business and Trade has revealed significant vulnerabilities in the nation's critical mineral supply chains, posing a substantial risk to its ambitions for a green industrial revolution and future technological advancements. The report, conducted by Frazer-Nash Consultancy, paints a stark picture of the UK's dependence on foreign sources for minerals vital to sectors like electric vehicles, renewable energy, and defense.

The assessment highlights the UK's limited domestic production and processing capabilities for critical minerals. The report specifically identifies China as a dominant player in several key mineral supply chains, raising concerns about potential supply disruptions and economic coercion.

One of the most pressing findings is the UK's vulnerability in securing minerals essential for battery production, such as lithium, cobalt, and nickel. The assessment points out that the UK currently lacks significant domestic refining and processing capacity, leaving it exposed to price volatility and supply chain bottlenecks.

The assessment also delves into the UK's capability in recycling and recovering critical minerals from end-of-life products. The report suggests that while there is potential for growth in this area, current recycling infrastructure and technologies are insufficient to meet the growing demand for secondary materials. The report recommends the UK invest significantly in developing a circular economy for critical minerals.

The Frazer-Nash report urges the UK government to take decisive action to mitigate these risks. Key recommendations include:

• Diversifying Supply Chains: Actively seeking alternative sources of critical minerals through partnerships and investments in friendly nations.

• Boosting Domestic Capabilities: Investing in domestic mining, refining, and processing facilities to reduce reliance on imports.

• Strengthening Recycling Infrastructure: Developing a robust circular economy for critical minerals to maximize resource recovery and minimize waste.

• Enhancing International Collaboration: Working with international partners to establish secure and sustainable supply chains.

• Developing a Strategic Stockpile: considering stockpiling critical minerals to mitigate short term supply shocks.

• Improving Transparency and Traceability: Implementing systems that increase the traceability of critical minerals throughout the supply chain.

The report serves as a wake-up call for the UK government, highlighting the urgent need to address critical mineral security. Failure to do so could jeopardize the nation's economic prosperity, technological leadership, and its ability to achieve its climate goals. The findings underscore the importance of a comprehensive and coordinated strategy to secure the UK's access to these vital resources.