Vision 2035: Unlocking government support for UK mining projects

The UK’s newly launched Vision 2035: Critical Minerals Strategy marks a pivotal moment for the domestic mining industry. Critical minerals such as lithium, copper, cobalt, and rare earth elements (REE) are the unseen building blocks of modern life. From the batteries that power electric vehicles to the magnets inside wind turbines and the components of smartphones, these materials are indispensable for technologies that underpin both everyday conveniences and the global transition to clean energy. The International Energy Agency forecasts demand for key energy minerals is set to grow rapidly across all scenarios, with the largest source of growth coming from the energy sector.

Yet, the supply chains for these minerals are far from secure. International Energy Agency believes that China remains the dominant refined supplier for almost all minerals. In 2035, China is set to supply over 60% of refined lithium and cobalt, and around 80% of battery-grade graphite and REEs. This is compounded by the export restrictions imposed by China on lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode, rare earth separation and lithium refining technologies highlighting the importance of technology in establishing geographically diverse refining and processing capabilities.

Western governments, long reliant on market forces, are now scrambling to respond. In an era of rising nationalism and economic security concerns—amplified by the return of Trump-era trade policies—the wisdom of depending on China for resources that power clean energy and defence systems is being fundamentally questioned.

The UK’s new critical minerals strategy is the government’s attempt to foster a domestic critical mineral industry which could be a big boost for UK mining companies producing and processing critical metals.

What vision 2035 means for UK mining

Vision 2035 sets ambitious targets, including:

• at least 10% of annual UK demand for critical minerals in the aggregate being met through domestic production, including at least 50,000 tonnes of lithium;

• 20% of total annual UK demand for critical minerals being met through recycling of products to recover critical minerals by 2035; and

• diversifying supply, so that no more than 60% of the UK’s annual demand for critical minerals in the aggregate is supplied by any one country by 2035.

To achieve the goals the government plans to leverage off the UK’s strengths in R&D, the UK’s midstream processing and recycling expertise, capabilities across the mining and minerals value chain and London’s role as international centre for financing mining and metals trading. The UK intends to focus on the regions where expertise, geological and geographical assets are concentrated and also in freeports. The government also intends to use its international influence global standards to increase transparency and responsible practices whilst fostering overseas countries to develop their mineral projects.

The issue is that there is currently no UK mine producing critical minerals and that projects that are in development are unlikely to reach production much before 2030. On the positive side there is midstream processing based on an import/export model including a global reputation for refining platinum group metals (PGMs), REEs, aluminium and nickel and refining/production of zirconium, magnesium, copper, titanium, iron, and silicon. There is also strong capability in the recycling sector including recycling product-based materials in key industries. However, the processing and recycling of graphite is a weakness which is used in a wide range of industries from batteries to automotive to electronics.

Access to public finance

In order to meet these ambitious targets and the rise in demand for critical minerals, the availability of funding will be crucial to success.

The UK has been proactive and following the 2025 Spending Review, the Department for Business and Trade will provide funding of up to £50 million for critical mineral projects in the UK. To date, the government has provided over £165 million worth of support to critical businesses, with an investment of £26.8 million via the National Wealth Fund to support the reopening of the South Crofty Tin mine in Cornwall, which serves as an example of the types of projects the government is willing to support.

The UK’s public finance offering includes DRIVE35, the National Wealth Fund, UK Export Finance, and the British Business Bank which we discuss further below.

Driving Research and Investment in Vehicle Electrification (DRIVE35)

As announced in the Advanced Manufacturing Service Plan, DRIVE35 will support R&D in strategic vehicle technologies. It builds on the Advanced Propulsion Centre R&D programmes and the Automotive Transformation Fund, which has funded a number of critical mineral projects that strengthen the UK’s electric vehicle supply chains from lithium refinery Green Lithium to battery recycler Altilium.

National Wealth Fund

The National Wealth Fund (NWF) is a key player in investing government money across the UK. In order to avail of NWF funding, projects in the critical minerals sector must meet a set of investment criteria and, if met, the NWF can deploy a range of tools to support critical minerals projects, including loans, guarantees and equity investments. On top of the £26.8 million investment into Cornish Metals mentioned above, the NWF also invested £24 million into Cornish Lithium in 2023 and has recently announced a further £31 million commitment to Cornish Lithium.

UK Export Finance

The UK Export Finance (UKEF), the UK’s export credit agency, is tasked with ensuring no viable export fails for lack of finance or insurance. It has a suite of products available to support exporters including guarantees, loans and insurance that can support domestic and international critical minerals projects.

UKEF has recently expanded its domestic offering to include financial support to UK exporters who are involved in the critical minerals supply chain. The Critical Goods Export Development Guarantee will help suppliers access working capital to secure long-term import contracts or invest in domestic capability building. To qualify, at least 50% of their production must go to UK exporters.

UKEF also recently updated its eligibility list to include the new growth minerals list which includes minerals such as copper, chromium, beryllium, uranium and synthetic graphite.

British Business Bank

The British Business Bank (BBB), as a result of the Industrial Strategy, now has an additional £4 billion available to be invested across the 8 growth-driving sectors. Alongside this, the BBB’s Nations and Regions Investment Funds has been granted capital to support innovation and create local opportunities for new and growing businesses across the UK’s regions. Due to critical minerals being a foundational industry to the growth sectors, and considering the regional clusters of critical minerals expertise, there is scope for critical minerals SMEs to access financing to start and scale in the UK.

Further government measures

Planning

The government has also extended the priority tracked service via the Environment Agency to include the critical minerals industry. This service will provide extra coordination and the required expertise and advice to successfully navigate the requirements of the Environmental Permitting Regulations and meet critical deadlines.

Energy costs

Energy costs are a key barrier to the critical minerals industry and are cited throughout the policy. The government has therefore introduced the British Competitiveness Scheme to bring energy costs in Great Britain in line with other major economies in Europe across the most electricity-intensive industries including critical minerals.

The government is also planning to review the eligibility of the British Industry Supercharger scheme in 2026 to ensure those business, including those in the critical minerals industry, most at risk of carbon leakage from high electricity costs are targeted. This scheme provides valuable support to electricity-intensive industries.

The level of relief offered through the Network Charging Compensation Scheme will also be increased from 2026 further reducing electricity prices for some of the most electricity-intensive businesses.

Skills

It is imperative the UK has a skilled workforce that is able to mobilise and tackle the expected increased demand for critical minerals. The government will therefore be working with Skills England and the Department for Work and Pensions to ensure there is a talented workforce available and will support people to pursue careers in this industry through Jobcentre Plus and the new Jobs and Careers Service in England.

Why this matters for mining companies

For UK-listed mining companies such as Cornish Lithium, Cornish Metals, Anglesey Mining and Tungsten West, Vision 2035 represents a unique opportunity to secure government backing, reduce investment risk and accelerate project timelines. With public finance and regulatory support available, the UK mining sector is well-positioned to meet increased demand for critical minerals.

Conclusion

The UK’s Vision 2035: Critical Minerals Strategy sets out the government's plan to reduce dependency on concentrated foreign supply chains and capitalise on the opportunity available to position the UK as a key player in the industry, achieving economic growth in the process.

To support this ambition, the government is committing significant public finance, up to £50 million, in the hope of attracting and enabling investment into the UK’s critical minerals industry. With significant funding and support measures available, now is the time for UK mining companies to explore opportunities, secure investment and lead the critical minerals revolution.

This article was co-authored by Alexander McKinney.