【By Observer Net, Qi Qian】

On November 22 local time, the UK government launched a "2035 Vision: Critical Minerals Strategy," planning to invest £50 million (approximately 466 million yuan) to reduce reliance on foreign suppliers in the critical minerals sector.

According to the strategy, the UK aims to achieve a target where the share from a single country does not exceed 60% within ten years. In addition, by 2035, 10% of the UK's domestic demand for critical minerals will come from domestically produced sources, and 20% from recycling.

The Guardian and Reuters believe that the UK's move is aimed at reducing dependence on China and strengthening its supply chain resilience.

"For a long time, the UK has relied on a few overseas suppliers, which has exposed our economy and national security to global shocks," UK Prime Minister Starmer stated on the same day. He said that critical minerals are "the cornerstone of modern life and national security." He believed that increasing domestic production and recycling rates would help protect the economy and support efforts to reduce living costs.

According to the introduction, the UK urgently needs a secure, long-term supply of critical minerals, including copper, lithium, and nickel. These minerals are essential for smartphones and electric vehicles, and increasingly important for building data centers that support artificial intelligence. By 2035, the UK's copper consumption is expected to nearly double, and lithium demand is expected to increase by 1100%.

The UK government said that currently, only 6% of the UK's critical mineral needs are met domestically. According to the strategy, the UK hopes to expand domestic mining and processing operations, with a particular focus on lithium, nickel, tungsten, and rare earths. The goal is to have at least 50,000 tons of lithium production by 2035.

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The UK government's official press release stated that China's core position in the global production of critical minerals has created highly concentrated supply chains. For example, China dominates the rare earth supply chain, controlling 70% and 90% of rare earth mining and refining respectively.

"We will continue to closely cooperate with China," the press release said, "while expanding international partnerships to diversify supplies and ensure sustainable long-term supplies needed by British businesses and people." The UK government explicitly stated that future priority partners include, but are not limited to, the United States, the European Union, Canada, Australia, Saudi Arabia, India, and Japan.

The press release specifically mentioned that China is the UK's fifth-largest single-country trading partner and an important participant in the critical minerals market. "We will conduct exchanges with China following the principles outlined in the UK's trade strategy."

The UK government released the "2035 Critical Minerals Strategy" on November 22

In recent times, Western countries such as the United States, the EU, and the UK have been anxious, trying every means to reduce their reliance on China's critical minerals.

The Guardian mentioned that there are lithium supplies across Europe, with the largest lithium deposits located in Cornwall, UK. However, raw materials need to be refined into lithium hydroxide to manufacture car batteries. But the EU lacks capacity in refining, and its only lithium hydroxide refining plant in Germany took five years to build and cost 150 million pounds.

The report also noted that the UK's above-mentioned strategy was proposed shortly after China and the EU had issues with automotive chip supplies.

Rare earths are known as "industrial vitamins," serving as key raw material supports for strategic industries such as advanced weapons and equipment, aerospace components, wind power, new energy vehicles, robots, and smart manufacturing. Over the past 30 years, China has always had a dominant position in rare earth mining and refining.

According to data from the International Energy Agency, in 2023, China accounted for over 60% of the global rare earth mine output, but its control over the processing stage accounted for 92% of global production, almost having a monopolistic control over the global rare earth processing industry. European media previously pointed out that for the US and EU, reducing reliance on China is a difficult task because China has already established a "de facto monopoly" in the rare earth field.

Currently, the US and EU are striving to reduce their dependence on China. Earlier this year, the UK reached a mineral cooperation agreement with Saudi Arabia to strengthen the supply chain and open doors for British companies, attracting new investments into the UK. In October, the EU revealed that the European Commission will propose a plan called "RESourceEU," focusing on recycling, joint procurement, reserves, and investment in the key minerals sector.

"Can the EU afford to escape Chinese control?" Politico EU asked on October 30. Experts have openly stated, "As long as European industries can purchase cheaper materials from China, other producers will have no chance."

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