Securing a domestic supply for energy with critical minerals

The use of lithium in electric vehicle batteries is well publicised. However, to fuel the United Kingdom’s energy transition and meet our net zero targets, demand for a wide range of lesser-known minerals used in clean technologies is forecast to increase. For example, in 2040, demand for rare earth elements commonly used in wind turbines could be seven times greater than 2020 levels. For a battery mineral, such as cobalt, demand could be twenty times greater than in 2020. (IEA 2022)

Currently, these minerals are extracted in countries such as the Democratic Republic of Congo (DRC) before being transported for refinement and processing in China. However, in the face of both increasing concern about the ethical nature of mining practices in the DRC (Amnesty International 2023) and increased concern around over reliance on global supply chains – the UK government published ‘Resilience for the Future: The United Kingdom’s Critical Mineral Strategy’ in 2022.

The strategy defined the following minerals as critical minerals, due to their high economic vulnerability and high global supply risk:

To reduce the economic vulnerability and minimise the global supply risk, the strategy aims to:

• Accelerate the UK’s domestic capabilities by maximising domestic production and promoting a circular economy for critical minerals.
• Collaborate with international partners to provide a more diversified supply, lessening reliance on one single producer.
• Enhance international markets by boosting ESG performance and transparency.

As minerals can only be worked where they are found, to determine the critical mineral potential across the UK, the Critical Minerals Intelligence Centre (CMIC) in collaboration with the British Geological Survey (BGS) analysed the available geoscientific data.

This analysis has identified eight areas located across the four constituent countries of the UK. Areas around Loch Maree and the Central Highlands have been identified in Scotland, Mid-County Tyrone identified in Northern Ireland, North West Wales and Pembrokeshire identified in Wales – as well as traditional mining locations such as the South West, Cumbria and North Pennine Orefield identified in England.

However, whilst these areas represent opportunities for the mining industry in the UK, it is merely the first step in the process of increasing the UK’s domestic production of critical minerals. There’s no guarantee that, after further geological investigation, these areas contain any critical minerals and even less guarantee that they’ll be found in sufficient concentrations to make extraction commercially viable. In addition, the extraction of these minerals must be done in a manner that minimises impact on communities and the natural environment. Therefore, it is likely mining companies will be required to develop new extraction and processing techniques to facilitate this.

Notwithstanding, there are a number of ongoing projects in the UK demonstrating keen interest in the development of the UK’s domestic critical mineral supply chain.