MPs have raised concerns that China is using its control over essential minerals crucial for green energy as a form of political leverage by limiting access.
The UK’s ambition to achieve net zero emissions is significantly vulnerable due to its dependence on Beijing for these key materials, as highlighted by the Parliament’s Foreign Affairs Committee.
The committee’s report calls on the Government to develop a robust strategy to ensure the availability of these rare earth minerals. Alicia Kearns, the chair of the Foreign Affairs Committee, emphasized the long-standing oversight in recognizing the significance of these minerals and the risks associated with relying on authoritarian states.
Kearns particularly pointed out the vulnerability arising from the UK’s reliance on China, noting the critical role these minerals play in modern technology. She warned of the severe consequences if China were to restrict access.
The UK has identified 18 minerals, including lithium, cobalt, and silicon, as essential for developing low-carbon energy solutions. These materials are not only vital for battery production but are also necessary for manufacturing electric motors, hydrogen fuel cells, and high-power electronics.
China holds a significant portion of the world’s rare earth minerals, crucial for creating magnets in motors and wind turbines, and also leads the lithium refining sector.
Rare earths, including metals like neodymium and dysprosium, are plentiful on the earth despite their name. China is a major player in both extracting these metals and processing them into functional materials.
The Foreign Affairs Committee noted in its report that China started using its control over critical mineral exports as a strategic tool for political influence in the early 2000s.
In a notable move in 2020, China’s Ministry of Commerce ceased issuing export licenses for graphite products to Sweden, a key component in lithium battery production, without providing an official explanation.
During a recent summer, China announced that purchasers of gallium and germanium, used in computer chips and solar panels, would now require export permits, effectively tightening supply. This action was perceived as a countermeasure to the US’s restrictions on China’s access to advanced computer chip technology.
Two years prior, China consolidated three rare earth mineral-producing companies into a single entity directly overseen by the Communist government in Beijing. This entity now manages approximately 70% of the country’s rare earth production.
Members of Parliament have called on the Government to develop a reliable and effective strategy for ensuring stable supplies of essential materials for various industries.
The report highlighted that the UK is heavily reliant on imports for vital minerals and mineral products, lacking sufficient domestic mines and facing significant challenges in establishing them.
The UK is unable to produce the required quantities of nearly all 18 “critical” minerals, with the capability to mine only about 10% of its lithium needs domestically.
Cobalt, a key component in numerous battery designs, is primarily found in substantial quantities in the Democratic Republic of Congo.
As Britain intensifies its efforts in green energy to achieve net zero emissions by 2050, securing these material supplies is of paramount importance.
