The UK government is set to support domestic businesses importing critical minerals, such as lithium, graphite, and cobalt, with new state-backed loans as part of its export finance scheme.
This initiative, expected to be announced by Chancellor Rachel Reeves, aims to bolster Britain’s supply of essential raw materials while reducing dependence on China, which currently dominates the global supply chain.
Critical minerals are fundamental for the UK’s green energy transition, used in renewable technologies, electric vehicle batteries, and critical defence sectors.
By facilitating imports from resource-rich Commonwealth countries like Australia, known for vast lithium deposits, the UK strengthens its position against supply constraints projected to worsen over the next decade.
The Chatham House think tank reports that China managed approximately 72% of the world’s lithium and 68% of cobalt supplies in 2022, underscoring the urgency of diversifying sources.
Announced alongside the Commonwealth summit in Samoa, the UK government has highlighted the Indo-Pacific’s strategic importance.
This region, accounting for 60% of global shipping traffic, is crucial to UK economic and security interests, according to British officials.
The UK also revealed an additional investment from AustralianSuper, Australia’s largest pension fund, amounting to £1 billion directed at British real estate.
AustralianSuper aims to expand its London-based team, aiming to manage £250 billion from the UK by 2035, a significant increase from its current £15 billion.
This collaboration aligns with the government’s ambition to attract global investments and fuel domestic innovation, with Prime Minister Keir Starmer describing the investment as a major confidence boost for the UK economy.
