Vision 2035: Critical Minerals Strategy

The government has published its Vision 2035: Critical Minerals Strategy, outlining plans to support domestic mining, processing and recycling of critical minerals over the next decade.  These minerals are essential for technologies such as wind turbines and EV batteries, and demand is set to soar as countries transition to clean energy.  Lithium demand in the UK alone is projected to rise by 1,100% by 2035.  You can read more on the development of the UK’s critical minerals strategy over recent years here, as well as the publication of its battery strategy in 2023. 

The latest strategy update aims to integrate critical minerals into a circular economy by leveraging UK expertise in recycling and midstream processing, supporting the mission to become a global leader in clean energy.

Key takeaways from the Vision 2035 Critical Minerals Strategy:

• Recycling: The strategy prioritises recycling and reuse to cut reliance on imports and reduce emissions, targeting 20% of demand for critical minerals met through recycling by 2035. The Department for Business and Trade (DBT) is developing a Circular Economy Growth Plan for England, drawing on principles from the EU’s Critical Raw Materials Act, which will outline regulatory reform to incentivise recycling of critical minerals.
• Domestic production: The government intends to increase domestic supply of critical minerals from 6% to 10% by 2035, including production of 50,000 tonnes of lithium over the next decade by leveraging Cornwall deposits. The overarching goal is to decrease supply chain risk, diversifying such that no more than 60% of the UK’s annual demand is supplied by any one country.
• Funding: DBT will provide £50 million of funding for UK extraction, processing and recycling projects. Additional funding will be provided by the National Wealth Fund and UK Export Finance, on top of the £165 million already invested in critical mineral projects.
• International partnerships: The government will deepen relationships with key trading partners such as the EU, US, Australia and Japan, using existing forums such as G7 and NATO to promote transparent supply chains and facilitate offtake agreements from overseas projects. 

If you are navigating procurement strategies, contract negotiations or planning for the development of critical minerals related infrastructure we would be delighted to discuss how strategic legal support can help your project become a success.

If you would like any further information, or advice related to any of the information in this article, please contact James Horton, Theo Wapshare, or your usual Burges Salmon contact. 

This article was written by Theo Wapshare and Sophie Pace-Bonello.