The British government has announced £50 million in new funding to boost domestic critical minerals production across extraction, processing and recycling, as part of an accelerating effort to reduce dependence on concentrated global supply chains dominated by China.
The funding is structured across three pillars: £20 million for a rare earth magnet hub, £25 million for an accelerator programme to help scale projects, and up to £5 million for a platform to aggregate industry demand and unlock private investment. Industry Minister Chris McDonald launched the programme during a visit to a northeast England industrial research hub where companies are developing technologies for metal recovery and processing.
“Critical minerals are vital for our national security,” McDonald said. The announcement builds on more than £200 million already committed to the sector and is intended to secure materials used across a range of products from smartphones and electric vehicle batteries to domestic appliances.
The initiative comes as China retains dominant positions across global critical mineral supply chains, accounting for approximately 70% of rare earth mining and 90% of refining. Britain has been seeking to develop domestic capabilities while simultaneously diversifying supply through partnerships with allies including the United States and South Korea, focused on supply chain collaboration, processing capacity and investment flows.
Recent domestic progress includes the opening of Britain’s first commercial rare earth magnet plant in 25 years, operated by Mkango Resources’ HyProMag unit in Birmingham, which produces magnets for electric motors and other technologies using recycled materials — demonstrating the viability of circular economy approaches to critical mineral security.
