MINEX Forum

Tag: United Kingdom

  • UK Launches First Commercial-Scale Lithium Plant in Cornwall to Strengthen Domestic Supply Chain

    UK Launches First Commercial-Scale Lithium Plant in Cornwall to Strengthen Domestic Supply Chain

    The United Kingdom has begun operations at its first commercial-scale lithium production facility, marking a significant step toward securing domestic supplies of critical minerals essential for electric vehicle batteries and energy storage.

    The plant, developed by Geothermal Engineering Ltd (GEL) in Redruth, Cornwall, will initially produce 100 tonnes of lithium annually, sufficient to supply approximately 2,000 electric vehicles. The company plans to expand production to 1,500 tonnes per year within the next few years and ultimately exceed 18,000 tonnes annually over the coming decade through an investment programme estimated at £640 million.

    Lithium extraction at the site relies on geothermal technology, with mineral-rich underground fluids used to recover the metal. GEL has also commissioned the UK’s first geothermal power plant to supply energy to the lithium operation, with surplus electricity to be sold to Octopus Energy.

    The project forms part of a broader push among Western countries to establish domestic critical mineral supply chains amid growing geopolitical concerns. China currently dominates lithium processing, accounting for around 60 percent of global production in 2025 and maintaining strong control over downstream battery supply chains.

    The UK government has set a target of producing 50,000 tonnes of lithium domestically by 2035, although market volatility following a sharp decline in lithium prices has delayed or reshaped several Western projects.

    GEL founder Ryan Law said geothermal integration enables the company to produce lithium competitively, adding that the operation could rival imports from China on cost.

    Other UK-based developers are progressing parallel initiatives. Cornish Lithium continues testing battery-grade lithium hydroxide samples from its demonstration plant and aims to commission a commercial facility by 2029, while Green Lithium has postponed its Teesside refinery start date to around 2029 under a phased development strategy.

    Industry analysts caution that European lithium projects must still prove cost competitiveness against established Asian supply chains. While lithium represents a relatively small share of total EV production costs, experts warn that building a fully Western-based battery supply chain could introduce higher costs at multiple stages.

    Additional challenges remain, including limited European cathode active material manufacturing capacity, which continues to link regional producers to Asian processing networks.

  • UK and US Sign Critical Minerals Partnership to Strengthen Supply Chains

    UK and US Sign Critical Minerals Partnership to Strengthen Supply Chains

    The United Kingdom and the United States have signed a new partnership aimed at securing critical mineral supply chains and boosting investment in domestic mining and processing projects.

    The Memorandum of Understanding was signed in Washington DC by UK Foreign Office Minister Seema Malhotra and US Under Secretary of State Jacob Helberg during a meeting attended by representatives from more than 50 countries. The agreement is designed to accelerate efforts to secure supplies of critical minerals essential for industries ranging from automotive and defence to clean energy and electronics.

    The partnership supports the UK’s Critical Minerals Strategy, published last November and backed by up to £50 million in new funding to strengthen domestic production and processing capacity. Under the strategy, the government aims to ensure that by 2035 no more than 60 percent of the UK’s supply of any single critical mineral comes from one country.

    The new UK-US framework seeks to encourage greater private investment in mining and processing projects, while enhancing cooperation between the two allies to build more resilient and diversified global supply chains.

    Minister Seema Malhotra said the agreement reflects a shared commitment to strengthening supply chain resilience and safeguarding long-term economic growth. Industry Minister Chris McDonald added that the partnership would help stimulate new investment into British mineral projects and support sectors reliant on secure access to raw materials.

    The agreement adds to the UK’s expanding network of bilateral critical minerals partnerships, which already includes Australia and Canada.

    The UK critical minerals sector contributes £1.79 billion to the economy and supports more than 50,000 jobs. There are currently over 50 domestic projects focused on extracting and refining critical materials.

  • Ionic Rare Earths Secures UK Grant Offer for Belfast Magnet Recycling Plant

    Ionic Rare Earths Secures UK Grant Offer for Belfast Magnet Recycling Plant

    Australian-listed Ionic Rare Earths announced on Tuesday that its subsidiary has been offered a £12 million ($16.4 million) capital grant from the UK government to support the development of a rare earth magnet recycling facility in Belfast.

    The funding, offered under the UK’s DRIVE35 programme, would contribute to the capital costs of the plant operated by Ionic Technologies, the company’s recycling arm. The grant remains subject to due diligence and standard funding conditions.

    DRIVE35 is a government-backed initiative aimed at accelerating the industrialisation of zero-emission vehicle technologies and strengthening domestic supply chains for critical materials. The UK, in line with other major economies, is seeking to expand domestic production and recycling of critical minerals as part of its strategy to reduce dependence on overseas suppliers by 2035.

    Once operational, the Belfast facility is expected to produce around 400 tonnes per year of high-purity separated rare earth oxides recovered from end-of-life permanent magnets. The plant will use Ionic Technologies’ proprietary long-loop recycling process, designed to return recycled materials directly into high-value magnet applications.

    Ian Constance, chief executive of the Advanced Propulsion Centre UK, one of the bodies involved in administering DRIVE35 funding, said the project would support the UK’s automotive and advanced manufacturing sectors by strengthening access to strategically important materials.

    Ionic Rare Earths said it continues to engage with multiple potential partners and financiers as it works to secure the remaining funding required for the £85 million project.

  • Mkango opens UK’s first commercial rare earth magnet recycling plant in 25 years

    Mkango opens UK’s first commercial rare earth magnet recycling plant in 25 years

    Canadian rare earths company Mkango Resources has opened Britain’s first commercial facility in a quarter of a century to produce permanent magnets, marking a milestone in efforts to reduce Western dependence on China for critical minerals.

    The new plant, located in Birmingham and operated by Mkango’s subsidiary HyProMag, produces permanent magnets from recycled materials rather than newly mined ore. It uses a hydrogen-based recycling technology developed at the University of Birmingham, which enables rare earth magnets to be recovered from end-of-life products and converted into new magnetic material with significantly lower emissions than traditional mining and refining processes.

    The launch comes as Western governments seek to loosen China’s dominance in the rare earths supply chain. China currently accounts for around 70% of global rare earth mining and about 90% of refining, making alternative supply sources difficult to scale up quickly. Recycling has therefore emerged as one of the fastest ways to expand access to rare earth materials in the near term.

    Speaking to Reuters at the opening, UK Industry Minister Chris McDonald said breaking China’s grip on the supply chain was a strategic priority. The Birmingham plant supports Britain’s critical minerals strategy, which targets meeting 10% of domestic demand through local mining and 20% through recycling by 2035, supported by up to £50 million in government funding.

    The facility has an annual production capacity of 100 to 300 tonnes of permanent magnets, depending on shift patterns. According to Mkango, the plant is already attracting strong interest from automotive manufacturers. The company is also progressing plans to replicate the technology in the United States and Germany, expanding the recycling-based supply of rare earth magnets beyond the UK.

    Britain previously had magnet manufacturing capacity, but this disappeared roughly 25 years ago as production shifted overseas. The opening of the HyProMag plant represents a step toward rebuilding domestic capability in a sector seen as vital for electric vehicles, wind turbines and other clean energy technologies.

  • UK Unveils 10-Year Critical Minerals Strategy to Boost Domestic Supply and Cut Reliance on China

    UK Unveils 10-Year Critical Minerals Strategy to Boost Domestic Supply and Cut Reliance on China

    The United Kingdom has released a new 10-year Critical Minerals Strategy aimed at lifting the share of critical minerals sourced from domestic mining and recycling to 30% by 2035, up from roughly 6% today. The plan introduces legally binding targets requiring 10% of demand to be met through UK production, 20% through recycling and limiting reliance on any single foreign supplier to no more than 60% per mineral. The initiative aligns Britain with U.S., Canadian and EU efforts to reduce dependence on China-dominated supply chains.

    Prime Minister Keir Starmer said critical minerals underpin modern life and national security, arguing that cutting exposure to a small number of overseas suppliers would help shield the economy from future disruptions. Backed by up to £50 million in new funding, the strategy also aims to secure at least 50,000 tonnes of domestic lithium production by 2035 amid forecasts that demand for copper will nearly double and lithium demand will surge more than 1,100% as EVs, wind energy projects and AI data centres expand.

    The strategy draws on the British Geological Survey’s 2024 assessment, which expanded the UK’s list of critical minerals from 18 to 34, adding nickel, iron, aluminium, germanium and chromium while removing palladium. The update brings the UK’s list in line with Canada and the EU, though still shorter than the U.S. roster of 50 minerals.

    Several domestic hubs are central to delivering the plan: Cornwall’s major lithium resources, tungsten deposits in Devon, the Clydach nickel refinery in Wales and Less Common Metals’ alloy facility at Ellesmere Port, one of the West’s few producers of rare earth alloys used in wind turbines and F-35 fighter jets. Industry groups say these projects will create high-quality jobs and strengthen supply chain resilience. Cornish Lithium, which recently raised £31 million for its Trelavour and Cross Lanes projects, called government support “essential” for producing battery-grade lithium at scale.

    Tin and tungsten projects are also set to benefit. Cornish Metals welcomed the critical mineral designation for tin, supported by a £28.6-million National Wealth Fund investment in the South Crofty mine, expected to create over 300 direct jobs. Tungsten West’s Hemerdon project in Devon, one of the world’s largest tungsten deposits, is shaping up as an early test of the strategy, with plans to enter production in late 2026.

    Beyond mining, the UK is leaning heavily on midstream processing and recycling. Ionic Technologies in Belfast and Hypromag in Birmingham are developing rare earth magnet recycling solutions with significantly lower environmental impact than primary extraction.

    Internationally, the strategy is more targeted but smaller in scale compared with U.S. and Canadian approaches. While the UK’s funding remains limited—£50 million in new support on top of earlier commitments—the government aims to de-risk strategic projects and strengthen midstream capacity. Industry leaders say clarity of vision is as important as financial backing.

    The plan also responds to China’s dominance of global critical mineral supply chains, especially in rare earths, where Beijing controls about 70% of mining and 90% of refining. The UK is considering stockpiling key materials and coordinating with NATO partners. It also promises faster permitting via priority processing lanes and lower power costs for industry under the upcoming British Industrial Competitiveness Scheme.

    While the UK’s critical minerals sector currently contributes £1.8 billion to the economy and supports more than 50,000 jobs, experts warn that domestic mining, processing and recycling must scale rapidly to prevent supply bottlenecks. Questions also remain over minerals excluded from the UK’s critical list, such as copper, despite its central role in electrification.

    Communities in mining regions will weigh the economic benefits against environmental and cultural concerns, but industry leaders argue that Britain’s renewed focus on critical minerals marks a shift from its traditional role as a global financing hub to an active player across the value chain.

  • Pensana Scraps £250m Rare Earth Refinery in Hull, Shifts Operations to the US

    Pensana Scraps £250m Rare Earth Refinery in Hull, Shifts Operations to the US

    Britain’s ambitions to become a critical minerals powerhouse have suffered a major setback after Pensana Plc abandoned its £250 million rare earth refinery project near Hull, opting instead to relocate operations to the United States, Sky News reported.

    The proposed refinery at Saltend Chemicals Park was intended to process rare earth elements for use in electric vehicle motors and wind turbine magnets, creating 126 jobs and serving as the centerpiece of the UK’s 2022 Critical Minerals Strategy. The project had been promised millions in government funding — funding that was never disbursed as construction failed to begin.

    Pensana’s chairman, Paul Atherley, said the move was driven by the Trump administration’s decision to guarantee purchases of rare earths from the US Mountain Pass mine at fixed prices — a level of state support he said Europe and the UK have failed to match.

    “That’s repriced the market — and Washington is looking to do more of these deals, moving at an absolute rate of knots,” Atherley said. “Europe and the UK have been talking about critical minerals for ages. But when the Americans do it, they go big and hard, and make it happen. We don’t; we mostly just talk about it.”

    The decision comes amid heightened geopolitical tensions and growing global competition for rare earth supply chains, as China — which produces about 90% of the world’s refined rare earth metals — tightens export restrictions. The announcement follows Beijing’s latest export curbs, which prompted President Donald Trump to threaten 100% tariffs on Chinese goods.

    The Hull refinery was once touted as a flagship project for the UK’s green industrial transition. During the project’s 2022 groundbreaking, then–Business Secretary Kwasi Kwarteng described it as “the only facility of its kind in Europe,” promising it would “secure Britain’s supply resilience.”

    However, Atherley said rare earth processing remains too complex, energy-intensive, and costly to be commercially viable in the UK, citing record-high industrial energy prices as a key obstacle.

    Pensana continues to pursue lithium refining plans in Teesside through its related venture Tees Valley Lithium, which Atherley described as more feasible given current economics.

    The move deals another blow to Britain’s chemicals and materials sector, already struggling with high energy costs and recent shutdowns, including the closure of Vivergo, a biofuels refinery located in the same industrial park.

    A Department for Business and Trade spokesperson called the decision “disappointing” but acknowledged it was a commercial matter for Pensana.

    “We will publish a new Critical Minerals Strategy soon to help secure our supply chains for the long term, and we’re reducing industrial electricity costs as part of our modern Industrial Strategy,” the department said.

  • U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    U.K. Nears Critical Minerals Partnership with Greenland Amid Global Supply Chain Rivalry

    Britain is preparing to sign a landmark critical minerals partnership with Greenland, a move aimed at securing access to the Arctic island’s vast reserves of rare earths and reducing reliance on Chinese supply chains. Sources familiar with the talks told POLITICO that the agreement could be announced during Prime Minister Keir Starmer’s visit to Copenhagen this week for the European Political Community summit.

    Greenland, a self-ruling Danish territory, hosts 40 of the 50 minerals the United States deems essential to national security, including uranium and graphite. These resources are increasingly vital for global supply chains powering electric vehicles, renewable energy, and advanced technologies.

    The U.K. Department for Business and Trade stressed that securing critical minerals is central to Britain’s industrial strategy, growth, and clean energy transition. Trade Minister Chris Bryant hinted earlier this week that new trade talks were imminent, without naming the country involved.

    Analysts caution that while Greenland’s mineral wealth presents an opportunity, the financial and environmental costs of extraction remain high. Environmental standards and indigenous community participation will be key to securing local support. Greenland has previously revoked mining licenses over radioactive waste concerns, underscoring the political and ecological sensitivities.

    The deal also carries political implications. Greenland’s revenues from mining could reduce its reliance on Denmark’s annual block grant, potentially strengthening its independence. However, experts warn that London must coordinate with Denmark, Nordic states, and the EU to avoid tensions, particularly as Brussels already signed a minerals partnership with Greenland in 2023.

    Even if secured, extraction is only part of the challenge. Most refining of rare earths and critical minerals still occurs in China. Without parallel investment in processing capacity elsewhere, Europe and the U.K. risk remaining tied to Chinese supply chains despite new mining agreements.

  • Kyrgyzstan’s Gold Exports Increase in 2024

    Kyrgyzstan’s Gold Exports Increase in 2024

    From January to November 2024, Kyrgyzstan exported 16.1 tons of gold valued at $1.26 billion, reflecting a 4% rise in weight and a 30% increase in value compared to the same period in 2023, when exports amounted to 15.4 tons worth $972 million. The United Kingdom emerged as the leading buyer, accounting for 82% of exports with 13.3 tons valued at over $1 billion. Early in 2024, exports to China were prominent, but later shifted entirely to the UK, halting sales to China, the UAE, and Switzerland.

  • Britain – Kazakhstan rare earth relations

    Britain – Kazakhstan rare earth relations

    In March, Kazakhstan and the United Kingdom signed a Roadmap for Cooperation in the field of critical minerals. This initiative aims to strengthen the partnership by establishing joint ventures within Kazakhstan. Kazinform’s correspondent investigates the benefits that Kazakhstan stands to gain from this collaboration with the UK.

    As the world rapidly moves towards a “green” future, the demand for critical minerals is steadily increasing. These minerals, including rare elements and certain metals, are crucial for the economic prosperity and national security of leading nations. The creation of sustainable supply chains and access to these elements’ deposits are at the heart of the UK’s strategy for critical minerals, adopted in July 2022 and updated in March last year.

    “We are moving towards a world based on critical minerals: we need lithium, cobalt, and graphite for electric vehicle batteries; silicon and tin for our electronics; rare earth elements for electric vehicles and wind turbines,” states the UK strategy document.

    The document emphasizes that critical minerals will become even more significant in the future, with expectations that by 2040, the world will need four times more of these minerals for clean energy technologies.

    Participants at the “Energy Transition 2023” conference at the Chatham House in the UK reported that wind generators and electric vehicle manufacturers urgently need neodymium and praseodymium, while suppliers of high-voltage power lines require cobalt and aluminium.

    Of the 18 critical minerals identified by the British Geological Survey, eight are already produced in Kazakhstan, with raw material bases for the other eight available in the country. This positions Kazakhstan among the top 10 key partners for the UK in this sector.

    Kazakhstan and the UK approved a Roadmap for Strategic Partnership in the field of critical minerals in March 2024. The British side emphasizes “sharing experience in mineral extraction and processing with support for the full lifecycle of raw material extraction,” viewing London as a financial and trade hub. Kazakhstan’s Ministry of Industry and Construction aims to create production with added value for critical raw materials, parts, or components for subsequent delivery to consumer countries.

    Deputy Minister of Industry and Construction, Iran Sharkan, noted that the minimum raw material processing threshold for investors matches the intermediate level, meaning goods of low technological complexity or semi-finished products. Specific projects include collaborative work on advanced international practices and modern technology for geological mapping, as well as promoting best practices in regional exploratory and mapping work for critical minerals between the Geological Survey of Kazakhstan and the British Geological Survey.

    One existing example of cooperation is the joint venture between MaritimeHouse and “Zhezkazganredmet” for rhenium processing in Kazakhstan. Rhenium is a rare metal mainly used as an alloying addition in the production of heat-resistant alloys essential for high-temperature installations like aircraft engines, industrial gas turbines, and rocket engines.

    According to Kazakhstan’s Ministry of Industry and Construction, beryllium, tantalum, vanadium, copper, titanium, and phosphorus are already being supplied to the UK market. However, the ministry did not comment on the degree of processing or the form of the exported products in response to Kazinform’s inquiry.

    Experts highlight that cooperation with Kazakhstan is vital for the UK to achieve its goals of securing access to mineral resources. Jeff Townsend, founder of the British Critical Minerals Association, stated that about 40% of Kazakhstan’s territory has been fully explored, making it an incredible opportunity to build a continuous supply chain from initial exploration and extraction to early processing stages and subsequent processing and marketing in the UK.

    Political changes in Kazakhstan over recent years have made the country more attractive to British companies. However, Townsend noted three challenges: the lack of understanding of Kazakhstan’s business environment among British companies, logistical difficulties in delivering goods to the UK, and competition with Chinese companies. Despite these challenges, the British believe that their technological advantages and expertise will help them overcome these obstacles and maintain their competitiveness.

  • Britain targets Russian gold, oil sectors in new sanctions

    Britain targets Russian gold, oil sectors in new sanctions

    Britain sanctioned two of Russia’s largest gold producers, Nord Gold Plc and Highland Gold Mining Ltd. Britain’s National Crime Agency (NCA) also issued an alert to financial institutions, warning them about Russian attempts to use gold to evade sanctions.

    The two companies did not immediately respond to requests for comment.

    Those sanctioned also include a United Arab Emirates-based network which Britain said was responsible for channelling more than $300 million in gold revenues to Russia, as well as businessmen Vladislav Sviblov and Konstantin Strukov.

    “Today’s sanctions will hit those who have provided succour to (Russian President Vladimir) Putin by helping him to lessen the impact of our sanctions on Russian gold and oil – two critical sources of revenue for the Russian war machine,” British Foreign Secretary James Cleverly said.

    The NCA said it hoped its notice would put banks and traders in Britain, a key location for precious metal trading, on alert so that Russian attempts to launder sanctioned gold by masking its origin could be spotted and stopped.

    “This alert will aid efforts, in partnership with the regulated sector, including the banks and high value dealers, to ensure that sanctioned individuals or those who represent them cannot use gold to circumvent UK sanctions,” said Adrian Searle, director of the National Economic Crime Centre at the NCA.

    Britain also sanctioned energy trading firm Paramount Energy & Commodities DMCC, saying its opaque ownership structures have been used by Russia to blunt the impact of the G7’s oil-related sanctions. Paramount did not respond to requests for comment.