The Chancellor has unveiled a significant initiative to support British industries by offering export credit financingaimed at securing a stable, long-term supply of critical minerals. This program, led by UK Export Finance (UKEF), aims to bolster UK industrial growth and drive the country towards achieving net zero by increasing access to these essential materials.
The global demand for critical minerals—key components in emerging technology and sustainable industries—is on the rise, making their steady supply crucial for the UK’s largest exporting sectors, including automotive, defence, and aerospace. By enabling contracts that enhance UK access to critical minerals like lithium, graphite, and cobalt, UKEF aims to reduce supply-chain risks and reinforce economic resilience.
As part of the initiative, credit guarantees will be provided to overseas suppliers of raw and processed minerals needed by UK exporters. These guarantees will allow overseas companies to access debt financing for projects that serve the UK’s mineral requirements. Furthermore, UKEF is expected to collaborate with other Export Credit Agencies (ECAs)and public financial institutions to fund projects in countries with abundant mineral deposits, including Australia, which is rich in lithium.
Jonathan Reynolds, Secretary of State for Business and Trade, emphasized the critical nature of this financing in securing resources for UK manufacturers and building international partnerships. “With intense global competition for minerals like lithium and cobalt, this offer will position UK firms competitively, supporting industrial growth and advancing our commitment to net zero,” Reynolds stated.
The announcement has been well-received by industry leaders. Kirsty Benham, CEO of the Critical Minerals Association (UK), hailed it as a testament to the UK Government’s recognition of critical minerals’ strategic importance. Sean Sargent, CEO of Green Lithium, added that the new financing initiative would strengthen international supply chains and support UK industrial development, especially at facilities like the planned Green Lithium refinery in Teesside.
The UK government’s involvement in the Minerals Security Partnership (MSP)—an initiative led by the United Statesto secure critical minerals supply—is also reflected in this announcement. Recently, UKEF joined the MSP’s finance network, collaborating with global financial bodies to mitigate risks and expand financing opportunities for mineral projects. In a parallel effort, UKEF provided a guarantee for machinery exports to a major copper production facility in Central Asia, showcasing its broader commitment to strengthening UK capabilities in the critical minerals sector.
