U.K., U.S. Join Forces on Critical Minerals

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K. and U.S. have signed a memorandum of understanding (MoU) to help each other secure supply chains for critical minerals.

The U.K. has signed a memorandum of understanding (MoU) with the U.S. to help it secure critical minerals supply chains. 

The agreement with the Trump Administration comes hot on the heels of the recent launch of its Critical Minerals Strategy, which aims to limit imports of any critical mineral from a single country to no more than 60% by 2035. 

Critical Alliances

The agreement was signed Foreign Office Minister Seema Malhotra and U.S. Under Secretary of State Jacob Helberg at a gathering of 50 countries in Washington, D.C. It will see both countries work closer together and encourage greater private investment in areas like mining and processing to support "crucial sectors," including automotive, defence and clean energy in both countries to secure vital minerals. The deal is backed by £50 million (US$68.4 million) of new funding to "turbocharge" domestic production and processing in critical minerals. Today the critical minerals sector contributes almost £1.8 billion (US$2.4 billion) to the U.K. economy and directly supports more than 50,000 jobs. Industrial Info is tracking 22 projects valued at more than US$3 billion investment.  Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

"We need critical minerals for everything--from the phones we use to the cars we drive," said U.K. Industry Minister Chris McDonald. "This partnership with the United States will boost minerals projects across Britain and drive new investment into businesses. Our Critical Minerals Strategy stressed the importance of forming international partnerships to diversify our supplies of minerals, and this signing does exactly that."

Critical Minerals Strategy

The U.K. is a net importer of critical minerals and according to its own Critical Minerals Strategy: "We will continue to be reliant on imports of critical minerals, even as we ramp up our domestic capabilities." That strategy set out targets including: 

• At least 10% of annual U.K. demand for critical minerals in the aggregate is met through domestic production (primary extraction, processing and refining of critical minerals) by 2035.
• At least 50,000 tonnes of lithium (or lithium carbonate equivalent) is produced domestically by 2035.
• 20% of total annual U.K. demand for critical minerals is met through recycling of products to recover critical minerals by 2035.

International partnerships will play a key role in its Critical Minerals Strategy, with the U.K. having also signed critical mineral bilateral agreements with Australia and Canada. Critical minerals-based trade deals have become more common in recent years following moves by China, the world's leading supplier and processor of many critical minerals and rare earths, to throttle supply. The European Union (EU) is acutely aware of its own vulnerabilities and has been investing heavily to reduce its reliance on non-EU third parties for key minerals. Last month. Industrial Info reported that that the European Commission (EC) was fast-tracking its RESourceEU Action Plan to combat its overreliance on China and others. It is backed by 3 billion euros (US$3.5 billion) over the next 12 months to support "concrete projects that can provide alternative supplies in the short term." For additional information, see December 15, 2025, article--Billions of Euro for Europe's Critical Raw Materials Plan. 

Key Takeaways

• The U.K. and U.S. will work together to secure supply chains for critical minerals.
• The U.K. is a net importer of critical minerals and international deals form a key part of its strategy to reduce its reliance on countries like China.
• Industrial Info is tracking 22 related U.K. projects valued at more than US$3 billion investment.  

IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).