UK government launches £50 million initiative to boost domestic critical mineral supply chain

A new £50 million fund aims to strengthen UK supplies of critical minerals, fostering domestic extraction, processing, and recycling to reduce reliance on imports and secure strategic technologies.

Households and businesses in the UK are set to benefit from a new £50 million push to strengthen supplies of critical minerals, as the government moves to reduce dependence on overseas imports and build more resilient industrial supply chains. The funding is being presented as part of a broader effort to support everyday products and strategic technologies, from smartphones and refrigeration to electric vehicle batteries and clean-energy equipment.

According to the government, the package is designed to accelerate domestic extraction, processing and recycling, while also encouraging private investment into the sector. The move builds on the Critical Minerals Strategy published in November 2025, which set out a long-term plan to secure supplies vital to economic growth and the energy transition, including a target for domestic production to meet at least 10% of annual UK demand by 2035 and recycling to recover 20% of demand.

Industry Minister Chris McDonald is due to visit Teesside’s Wilton Centre on 22 June to launch the programme and see two firms working in the sector, Seloxium and DEScycle. The government says the Teesside site, long associated with heavy industry, is well placed to support new work in processing and recycling, while also underlining the North-East’s role in the wider industrial strategy. Jeff Townsend, founder of the Critical Minerals Association, said the shift from policy design to delivery was encouraging, as the grant programme begins to back projects that have reached maturity.

The money will be split across three strands. A £20 million Magnet Hub is intended to create a national centre for rare earth magnet manufacturing, testing and skills development. A £25 million Critical Minerals Accelerator will support collaborative extraction, processing and recycling projects. Up to £5 million will go towards a Demand Aggregation Platform, aimed at helping UK industry pool demand and secure supply through strategic agreements. The government says the measures will add to more than £200 million already committed through schemes including the National Wealth Fund, DRIVE35 and the UK Shared Prosperity Fund.

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Source: Fuse Wire Services