Critical Minerals: Domestic Production

09:30:00

I beg to move, That this House has considered the domestic production of critical minerals. It is a pleasure to serve once again under your chairship, Mrs Harris. I am pleased to have secured this debate on a subject that I believe is yet to achieve the public and pollical prominence that it deserves, but that is fundamental to the UK’s energy transition, economic security and industrial growth—especially in areas of high deprivation. What are critical minerals? Strictly speaking, critical mineral is a label given to materials that are deemed to have economic value and that are vulnerable to supply chain insecurity. The term was first used by the United States Government in the 1940s to describe materials crucial to military technologies. In our modern economy, transitioning to net zero to mitigate the existential threat that we all face from climate change, the new generation of critical minerals such as tin, lithium and tungsten are crucial as the global economy shifts from a fossil fuel intensive to a material-intensive energy system. Last week, the British Geological Survey published its critical minerals list, finding 34 different materials crucial to our economy.

My hon. Friend mentions the critical minerals list; it is my view that the list needs to evolve to keep up with the increasing demands that we face, and to account for the production of minerals that we have in this country. In my part of the world we produce polyhalite, a fantastic crop nutrient fertiliser that has huge potential for our food security. Would he agree that the critical minerals list needs to account for minerals such as polyhalite, so that we can ensure our economy is growing into the future?

It is essential that there is an ongoing dialogue about the critical minerals list. I attended a conference yesterday with the British Geological Survey, at which it explained how it came up with the critical minerals list. My hon. Friend is absolutely right that we need to focus on those minerals that are crucial to the development of our economy. Those minerals are essential for our batteries, cars, wires, consumer devices and defence applications. To be clear, critical minerals are the cornerstone of the clean energy revolution—the lifeblood of electric vehicles, wind turbines, solar panels and cutting-edge electronics. In a world where demand for technology grows ever stronger, critical minerals stand as both our greatest challenge and our most brilliant opportunity. Demand is set to massively increase over the next few years and decades, as more consumers buy electric vehicles powered by renewable energy. I have framed critical minerals as a great challenge as well as an opportunity. That challenge arises because at the moment the UK imports almost all of its critical mineral demand. A number of countries dominate the upstream supply chains, with the top three nations dominating well over three quarters of global output, according to the International Energy Agency. That concentration of production is even higher when it comes to refining operations, where China dominates. By 2030, 85% of lithium will be refined in just three countries. That level of supply chain domination is distinctly undesirable for our decarbonising economy and is much higher than the production concentrations of fossil fuels. We must diversify our supply chains to achieve greater resource security, including the development of domestic production capabilities. Other large economies such as the US, Canada, Australia, and the EU are working to secure their own critical mineral supply chains, and we must not be left behind in the race to supply security.

I apologise for being late, and I congratulate my hon. Friend on securing this important debate. I agree that the market of critical minerals is intensely concentrated in China. Therefore, for security reasons, for economic opportunities and to achieve net zero, it is vital to secure the domestic supply chain. Does he welcome, as I do, the recent memorandum of understanding between Cornish Lithium and LevertonHELM, which produces speciality lithium chemicals, in my constituency? That will help to secure a domestic supply of lithium to support the development of the UK’s battery sector, which in turn will help to maintain the competitiveness of our automotive sector.

I thank my hon. Friend for that intervention and wholeheartedly agree with him. As I will mention later, although I am Cornish and focus on Cornwall, there are benefits to be had throughout the United Kingdom. Relying unreservedly on international supply chains increases our global carbon emissions and means we cannot ensure a higher level of environmental care and social standards in the extraction and processing of these materials. To mitigate that dependency and build secure localised supply chains, including for electric vehicle batteries, investment in domestic extraction and processing is essential. Establishing our domestic industry would also aid our export capabilities. Our significant lithium reserves could be upstream of a developed battery industry, in turn feeding into the demand for electric vehicles, which is predicted to increase by 30 times up to 2050. The EU is the main export market for UK cars. In 2027, EU rules of origin will come into force, mandating that 65% of the value of a battery must originate in the EU or UK, or there will be significant additional costs. Developing domestic industry will keep our exports compliant with those rules and will keep us protected against any other rules on environmental credentials. Let us consider the critical mineral resources that the UK possesses. From my own constituency in the heart of Cornwall to Pembrokeshire in Wales, County Durham, Cumbria, County Tyrone in Northern Ireland and the central highlands of Aberdeenshire, the UK is littered with critical mineral potential. Most significantly for the green transition, we find reserves of lithium, tin and tungsten in economically viable quantities. We should also appreciate that those key areas have been mined historically and are all areas of significant socioeconomic deprivation. If we can create an environment for a domestic industry, there is significant potential for wealth to be held in those communities in the form of good, well-paid jobs. I would like to discuss the particular opportunities in Cornwall, with which I am most familiar.

My hon. Friend is making a compelling case, not just for the national security implications of critical minerals, but for the welcome huge economic benefits. Given that, does he welcome the Government’s commitment to bring forward a new strategy for critical minerals security? Does he agree that that would bring benefits, not just for the regions blessed with the minerals in natural supply, but for companies such as Panther Metals in my constituency, which will be able to deliver a big part of the national supply chain in future?

I thank my hon. Friend for his intervention and wholeheartedly agree, once again, with the desire for the Government to focus on critical minerals, hopefully developing the critical minerals strategy as a core part of the UK’s overall industrial strategy. I will talk more about that later. Beneath Cornwall lies a mass of granite rock called the Cornubian batholith—that is harder to say at 9.40 am than one would think—in which lithium-bearing mica was discovered in 1825. In recent years, the extraction and processing of that resource has been developed by two enterprises: Imerys British Lithium and Cornish Lithium, as mentioned by my hon. Friend the Member for Basingstoke (Luke Murphy). Significantly, the UK lithium demand is projected to be 80,000 tonnes a year by 2030, with geological reserves in Cornwall covering a significant proportion of that demand over the next few decades. I point out that even though demand is projected at 80,000 tonnes a year, we currently have no domestic supply. Both companies have received significant investment, and just this year Cornish Lithium opened its first processing facility, refining battery-grade lithium hydroxide, locally in Cornwall. These companies constitute not potential on the horizon, but enterprises employing hundreds of people, generating wealth, developing technologies and working with communities and academics. The potential in Cornwall is underpinned by a rich depth of mining heritage over thousands of years, with an economic peak in the 19th century, when tin was mined on an industrial scale, before the price collapsed and jobs moved to other places around the world. The last tin mine closed at South Crofty, in the heart of my area of Camborne, Redruth and Hayle, in 1998. When it did, the following words were graffitied on the closed gate: “Cornish lads are fishermen, And Cornish lads are miners too, But when the fish and tin are gone What are the Cornish boys to do?” Today, a firm called Cornish Metals is working to reopen South Crofty tin mine; it is draining it of water as we speak, so that work can start again to meet the severe supply shortages of tin worldwide that the global economy now faces. I have been down South Crofty mine myself and, although it must be said that I am not a geologist, I am convinced that the objectives of Cornish Metals can and must be achieved. Lithium gets a lot of deserved attention because of its use in lithium-ion batteries, but tin is as crucial to modern technologies and electrical infrastructure such as solar panels. Cornwall hosts the third highest-grade tin deposits in the world, and it is the highest grade of tin deposit that is not currently mined. South Crofty and much of Cornwall more generally represent a unique blend of ancient mining heritage, geological reserves and community support. That comes alongside a cluster of companies and expertise in and around educational institutions such as the world-leading Camborne School of Mines and the University of Exeter, based in Penryn, which has more top 100 climate scientists than any other university in the world. The UK’s burgeoning critical minerals industry could be a game changer, helping to relieve pressures on communities such as mine and generating jobs and wealth. With those communities in mind, it is fundamental that domestic production works for local people and the natural environment, so that we do unleash the Cornish Celtic tiger. As an officer of the all-party parliamentary group on critical minerals, alongside my hon. Friend the Member for St Austell and Newquay (Noah Law), I am in close contact with the industry. We attended the Critical Minerals Association conference yesterday and will attend another industry conference on the future of mining later this week. Industry leaders have made it very clear to me that there is a serious gap in the midstream supply chain for batteries, including magnet development. Much focus is on the upstream, but those gaps must be plugged as well. Industry is crying out for domestic production guaranteed by the Government, whether as a set tonnage or as a percentage of demand on a sliding scale. That would reassure mining finance, which is relatively risk-averse. In that vein, I ask the Government to consider implementing de-risking financial instruments such as price floors, as well as considering mineral-extraction projects as part of the enterprise investment scheme, which provides tax reliefs for investors supporting small and growing enterprises. The industry suffers from a long development timescale and high up-front costs, both of which need to be considered as the Government tackle this country’s industrial and planning issues. Giving more support to this industry will increase its credibility as a possible career path in the education system. Camborne School of Mines, the UK’s only dedicated mining college, and perhaps the world’s most famous, offers sector-specific undergraduate courses, but we require greater focus on STEM subjects—science, technology, engineering and maths—at GCSE and A-level, alongside apprenticeships. To conclude—I am sure hon. Members will be relieved to hear that—

Australia is the world’s largest lithium producer, but nearly all its lithium is exported to China for battery production there, and there is very little domestic battery production. Does my hon. Friend agree that the UK, if it follows the path that he wants it to, should not fall into the same trap? We need to have the upstream demand as well as the mining production.

My hon. Friend is absolutely right. As I mentioned, the risk is that we have a small number of dominant players from areas of the world that are potentially geopolitically sensitive for the UK and the west. It is crucial that we focus on our own domestic critical mineral production, so that we have that security going forward. I entirely agree. To conclude, critical minerals are the elephant in the room when it comes to energy transition. We must capitalise on UK domestic potential. How we extract the materials, how we capture supply chains and how we develop technologies to recycle critical minerals will only become more important. I have focused on the cluster of businesses in Cornwall, but Northern Lithium, Green Lithium and Weardale Lithium in the north of England represent other acorns of industrial potential that we must support. Northern Lithium is targeting production of over 10,000 tonnes of battery-grade lithium from brines, having secured mineral rights over 60,000 acres. Only last week, Watercycle Technologies from the University of Manchester developed new technology for producing battery-grade lithium from UK source brines. We have to acknowledge the scale of the challenge at hand in order to generate a rising tide that will lift the whole industry. Critical minerals must form a core part of the Government’s industrial strategy, alongside investment in housing in deprived communities, infra- structure around and within key sites such as Falmouth port, and commercial infrastructure such as rail for freight transport and a tin smelter at South Crofty. Currently, tin produced in the UK would have to be shipped to east Asia to be smelted and then shipped back, creating extensive carbon emissions through shipping and offshoring the jobs and infrastructure in the supply chain that we need domestically. With all that in mind, I ask the Minister: what is the state of the Government’s ongoing dialogue with the industry? Do the Government recognise the current geopolitical risks of a world shortfall in the supply of tin, and will the white heat of the UK’s critical mineral industry form a key part of the Government’s strategy? If we overcome these challenges, we will deliver the UK’s critical mineral security, create thousands of jobs in deprived communities and accelerate our drive towards a fossil fuel-free future.

Order. I remind Members that they need to stand if they wish to speak during the debate.

09:48:00

It is a real pleasure to serve under your chairship, Mrs Harris. I am sorry I missed you yesterday, but I am back in line today. It is really nice to be here. I thank the hon. Member for Camborne and Redruth (Perran Moon) for leading the debate. He made the case for critical minerals enthusiastically, with the evidential base that he clearly has from his constituency. This may not be the most sexy debate, but it is a vital one, because it raises important issues that are often forgotten or not acknowledged. The hon. Member has done the House a service in introducing the debate, and we thank him for that. I am aware of the minerals within Cornwall, and the fact that a range of critical minerals are required for numerous industries within the United Kingdom of Great Britain and Northern Ireland. Minerals such as lithium, cobalt and graphite, which have a high risk of supply disruption, are the centre of debates on this issue. It is truly great to be here to give a Northern Ireland perspective, to enable us to play our part as well. The hon. Member for Camborne and Redruth mentioned County Tyrone. He said beforehand that he would mention Northern Ireland, and he did. I will refer to Country Tyrone, and a few others, to add to the debate and hopefully enhance the scope of what we are trying to achieve. The British Geological Survey published a report in 2023, which identified numerous areas around the UK as prospective areas for critical raw minerals. For Northern Ireland, those areas were in mid-County Tyrone. These critical minerals are essential for the transition to the green economy. Some people think we can ignore the green economy, but we cannot. It is important that it should be central to our policy as we move forward. It is essential for the creation of jobs in the tech, defence and automotive industries. There are numerous critical minerals that are found in Northern Ireland and have been mined there historically, including iron ore and coal. In 2021, the Department for the Economy back home in Northern Ireland commissioned research into the economic, social and environmental impacts of mineral exploration and mining in Northern Ireland. I know that the Minister is assiduous in her job, so perhaps she would tell us whether there have been any discussions with the Department of Enterprise, Trade and Investment back home, and if so, what they have been about. We can do this together, and it enhances our great Union when we do things together. The research helped to provide key information on the mineral life cycle in Northern Ireland. Furthermore, it can allow us to work alongside partners in the mainland on the production of critical minerals, which are so important today. We need to exploit—I am loth to use that word, but it is possibly the best—or certainly take advantage of what we have. In addition, salt has been produced at the underground salt mine in County Antrim, and historically lead has been mined across Northern Ireland, including in the Newtownards area in my constituency of Strangford, which I have the pleasure and privilege to represent. The regional, national and global demand for certain critical minerals has increased dramatically and rapidly, and we face ongoing challenges because of that. The hon. Member for Camborne and Redruth emphasised that clearly in his opening contribution. The extraction and processing of certain minerals has been highly challenging, and can lead to supply constraints and prices rapidly rising. The importance of the issue cannot be underlined enough. The hon. Gentleman mentioned the importance of mining in Cornwall, specifically lithium, which will be paramount to the UK’s transition to a better net zero policy and away from fossil fuels. The Minister responded to the hon. Gentleman’s question in the main Chamber by stating that the Government are currently looking at the critical mineral strategy. When the Minister responds today, perhaps she will indicate just what that strategy is, and how it encompasses all of this great United Kingdom. It is understood that there are certain areas across the UK that are more prominent in relation to critical minerals, but I would be grateful if the Minister and relevant Departments committed to undertake discussion with their counterparts in the devolved institutions to ensure that areas with potential mineral production, such as mid Tyrone and others in Northern Ireland, can be used to increase UK production. We must do this together. Numerous companies have received Government support for the sector through the automotive transformation fund, and the UK supply chain has a share of up to £1 billion of funding, but the market for these industries remains increasingly competitive. I would be interested to hear from the Minister what could be done to enhance that. To conclude, it is all about maintaining and building sustainable industries across the whole of the United Kingdom of Great Britain and Northern Ireland. I spoke in the main Chamber on critical minerals before the general election. I very much look forward to hearing what commitments the Government can make to Northern Ireland to ensure that we all have equal opportunities to succeed. Perhaps the Minister will give consideration to engaging with counterparts back home in Northern Ireland on this issue within this governmental mandate. We in Northern Ireland can and wish to be part of this very exciting opportunity. It is potentially exciting for all of the great United Kingdom of Great Britain and Northern Ireland. None of my Scots Gaelic cousins are here, but I can say honestly that we are always better together, and that is the truth.

09:54:00

It is an honour to follow the hon. Member for Strangford (Jim Shannon) and to speak in a debate called by my hon. Friend the Member for Camborne and Redruth (Perran Moon), with whom I often joke about critical minerals. Honestly, it is funny. I had thought that if I were to put a pound into a jar every time that my hon. Friend mentioned tin, I would be financially challenged, but after today’s debate, I would be bankrupt. I thank him for calling the debate. As the MP for Bournemouth East, I belong to the south-west, so I have a particular interest in seeing that region develop and strengthen its green economy so that the people I represent can thrive and prosper. As the first ever Labour MP for Bournemouth East, I am particularly proud to be speaking about a region that has the largest concentration of Labour MPs in a very long time. When local people vote for Labour, they do not just get an investment in critical minerals development but in clean energy infrastructure and the jobs of the future that will help people to have a better way of life. The south-west has a remarkable mix of nationally significant critical minerals, which will be vital to the UK’s energy security and industrial resilience, especially in the advanced manufacturing sectors, which rely on a supply of lithium and tin. I am pleased that the south-west is home to the world-renowned Camborne School of Mines at the University of Exeter, which has received £4.5 million to establish a green economy centre to accelerate the mining of lithium, tin and tungsten in collaboration with local businesses and Government bodies. I hope that there will be a role for Bournemouth University in the development of this project. Critical mineral extraction was once a major industry for Cornwall—also in the south-west—and its rejuvenation must be a key component of our green economy. When the Labour Government came to power, they inherited a very difficult cost of living crisis. Because the Government we replaced had left the country exposed to fossil fuel dictators, we saw inflation rise to 10% and 11%. A third of that was driven by the gas shocks prompted by the invasion of Ukraine. The cost of living crisis has been a disaster for Cornish constituencies and constituents of mine, with typical energy bills nearly doubling in the space of a year and family finances in a mess for so many. The previous Government were forced to spend £94 million to support households with the cost of living crisis. We need to achieve clean energy not just to create the jobs of the future but to ensure that our country is no longer exposed to the whims of fossil fuel dictators. The last Government ducked and dithered and delayed some difficult decisions on critical minerals, which has left us in this difficult place. Every time they ducked and delayed, they denied our country the clean energy infrastructure we needed. The Climate Change Committee report, published two weeks after the Labour Government came into office, laid bare the true reality, and said that “last year…the previous Government signalled a slowing of pace and reversed or delayed key policies…The…announcements were given with the justification that they will make the transition more affordable for people, but with no evidence backing this claim.” The Climate Change Committee’s assessment was that only a third of the emissions reductions required are currently covered by credible plans. I welcome this debate in bringing to the fore critical minerals and the contribution that Cornwall can make to our clean energy revolution. The faster we go, the more we will be able to secure and create jobs and tackle our climate crisis. I thank my hon. Friend the Member for Camborne and Redruth for calling this debate, and I thank all Members for contributing. Together this House will have the solutions we need so that we can all be in a better place.

09:58:00

I thank my hon. Friend the Member for Bournemouth East (Tom Hayes) for his speech and my hon. Friend the Member for Camborne and Redruth (Perran Moon) for securing this vital debate and for his thorough introduction to critical minerals. I must begin by declaring an interest as chair of the all-party parliamentary group on critical minerals. In my capacity as chair, I hope to champion the UK’s critical minerals sector and encourage the Government to use all economic and educational levers available to support UK domestic production, stimulate growth and ensure that we exploit the sector’s vast untapped potential. In my constituency of St Austell and Newquay, we are privileged to sit atop the heart of the largest lithium resource in Europe. It is a vital mineral for the green energy transition, as we have heard. For those not familiar with the properties of lithium, it is a key component in batteries that power electric vehicles, as well as being essential for the renewable energy storage that we need. It is key for many other crucial technologies that will be part of our low-carbon future. The distillation of raw materials in Cornwall, with our unique geology, present an unparalleled economic opportunity not seen since the 19th century when we dominated the global mining market in tin and copper. Let me stress the magnitude of that opportunity and what it potentially means for Cornwall. Lithium mining offers the chance to revitalise that legacy in a way that stimulates Cornwall’s economy and turbocharges our country’s clean energy mission. It is therefore imperative that the Government support the development of this burgeoning sector and work with cutting-edge businesses like Cornish Lithium, which is pursuing environmentally responsible lithium extraction from geothermal waters and hard rock with pioneering technology. By doing so, Cornwall can emerge as a leader in critical mineral production globally, with benefits cascading across local and national economies. On a broader scale, securing the domestic supply of critical minerals is not just a matter of economic opportunity for local people in my constituency, in Cornwall and beyond; it is a matter of national security. Currently, the UK is over-reliant on imports from nations such as the Democratic Republic of the Congo. Many of the countries in the supply chain sit squarely within either the Chinese or Russian spheres of influence. That dependence exposes us to significant risks, including geopolitical instability, ethical concerns surrounding the supply chains, and the potential for resource monopolies. I suggest that if we are to go globetrotting for our critical minerals, we should trot very carefully indeed and prioritise our domestic powerhouse of production. Investing in domestic production, especially of lithium, will strengthen our energy security, reduce vulnerabilities and ensure that the transition to renewable energy is underpinned by a resilient and ethical supply chain. Cornwall is uniquely positioned to contribute to this national ambition. We are also able to spread the wealth that will come from a production epicentre in Cornwall across the whole of Great Britain and Northern Ireland. For the industry to flourish, we must address the skills gap. Institutions such as the Camborne School of Mines, which we have already heard about, and the Truro STEM centre are at the forefront of educating the next generation of workers for the industry. I look forward to the forthcoming investment in Cornwall college in the next year or so, as historically it has been an excellent source of talent for further education. The potential is immense: more than 100 degree-level apprenticeships could be offered at Camborne alone, and a similar number of mineral processing apprenticeships are available in Truro. Each major player in the critical minerals industry forecasts the need to train around 300 staff just in terms of direct employees, not to speak of the vast supply chain required. That makes it ever more crucial that we harness local talent to plug into the supply chain. To achieve all that, we must provide the necessary resources for the teaching institutions, including incentives to attract and retain skilled teaching staff who may work in very lucrative industries and find it difficult to justify coming back to teach the next generation. The Government should consider additional measures in terms of funding or salary enhancements to ensure that educators are not drawn away by the competitive salaries offered overseas in the industry itself. Further education deserves parity of funding and esteem, given its vital role in growing this vital industry. It is crucial that we align Skills England’s methodology with the reality of emerging industries to capture the nascent but fast-growing demand for skills. A forward-thinking industrial strategy, informed by the business-level and project-level data, is essential to anticipate and meet the needs of the sector. On our infrastructure challenges—there are many in Cornwall in particular—Cornwall’s potential to lead in the production of critical minerals will be realised only if we address the intertwined challenges of housing, transport and, of course, the grid. Cornwall suffers from a protracted housing crisis, with the proliferation of second homes resulting in a severe lack of affordable housing for local people. The Government’s drive to build social and affordable homes must therefore be accelerated in Cornwall to ensure that our local talent pool, which the industry is so keen to unlock, is not driven out of the region, as so many have been before. Similarly, transport links must be drastically improved. The woeful state of the road connecting St Austell and Newquay offers a prime example of the difficulties of getting goods, services and people to flow around our county. It is essential that efficient, sustainable transport for workers, businesses and supply chains functions correctly. The current state of our infrastructure is dire. It is a critical component of creating the conditions for success in the sector, so I welcome the Minister’s visit in the spring, when we can go further into the specifics of an investment plan for Cornwall. Finally, funding remains a significant hurdle for critical minerals exploration in Cornwall. The current funding landscape presents a huge challenge, and the schemes available for smaller projects are far too limited. The gap must be addressed if we are to enable early-stage mineral production projects, for example, and to progress the commercial viability of the small and medium-sized enterprises that will form the backbone of the Cornish mining supply chain. I therefore urge the Minister to consider reforms to the funding structures. The EIS has been mentioned in the context of supporting critical mineral exploration. It is a great shame that we have some of the world’s finest overseas development export and offtake finance institutions but our ability to support home-grown mining companies with offtake and other specialised financing agreements that support the UK’s energy security is not good enough. By providing tailored financial support, we can unlock the sector’s potential, ensure that domestic supply chains are robust and self-sustaining, and bring prosperity to our proud clay country villages in Cornwall, and to the country more widely. In leading the debate, my hon. Friend the Member for Camborne and Redruth underscored how vital it is for our national security, energy resilience and climate goals that we secure the domestic production of critical minerals. With its rich mineral resources, skilled workforce and the support of the Government, Cornwall is uniquely placed to succeed in the sector and to be at the epicentre of the critical minerals revolution. By seizing that opportunity, we can not only transform Cornwall into a global hub for sustainable critical mineral production, but inspire a model of regional regeneration that places communities and climate action at its heart. Let us ensure that the rewards of the industry are shared as widely as possible, secure a thriving future for Cornwall and set the standard for the rest of the United Kingdom.

10:07:00

It is a pleasure to serve under your chairmanship, Mrs Harris. I congratulate the hon. Member for Camborne and Redruth (Perran Moon), not only on bringing this issue to the House’s attention, but on the manner in which he introduced it, emphasising its importance. There have been a number of contributions to the debate, in the form of both interventions and speeches. The hon. Member for Middlesbrough South and East Cleveland (Luke Myer) emphasised the importance of keeping the whole strategy under review. The hon. Member for Basingstoke (Luke Murphy), who is no longer in his place, emphasised the importance of the strategy and of ensuring that our national security is protected in the manner in which our policy is produced. The hon. Member for Hitchin (Alistair Strathern), who is also no longer in his place, emphasised the huge potential economic benefit to this country of further developing the strategy. The hon. Member for Leeds Central and Headingley (Alex Sobel) also contributed and, of course, the ever-present hon. Member for Strangford (Jim Shannon) gave a telling contribution, making the vital point that although Cornwall is the epicentre of activity as far as critical minerals are concerned, other Celtic regions in the United Kingdom make an important contribution, as indeed do other locations throughout the country. The hon. Member for Bournemouth East (Tom Hayes), whose constituency is within the Government zone of the south-west, as I describe it, emphasised the importance of taking a wider regional and national view on the integration of the various component parts necessary to developing a strategy. The hon. Member for St Austell and Newquay (Noah Law), who is the chair of the all-party parliamentary group on critical minerals, again emphasised the importance of the sector to the British economy. It is important to establish a clear strategy and, to be fair, the previous Government established a strategy in 2022, on which the current Government can build. They also established the Critical Minerals Intelligence Centre, which is run by the British Geological Survey and is another building block on which to develop a future strategy. And the strategy does need to be developed; it cannot be left where it is. It is important to emphasise that the industry is vital not only to the country’s intention to address climate change but to the integration of climate change and nature conservation. When one looks at the extraction of any precious component or metal, such as lithium, from Cornwall’s remarkable geography, one has to consider the consequences for nature conservation. I find it particularly pleasing that, in the constituency of the hon. Member for St Austell and Newquay, there is a strong working relationship between Imerys and local nature conservationists. For example, only recently it was detected that the little ringed plover, which is a particularly vulnerable species, is now breeding in what was originally the clay wastes of the clay country, and within the area where lithium is likely to be extracted in the future. In other words, it is possible for those extractive industries and nature conservationists to work together and accommodate each other within the same environment. As we go forward it is really important that that conversation goes on. Like the hon. Member for Camborne and Redruth, I went down South Crofty, below 3,000 feet, but before it closed in 1997. I certainly agree with him and hope that the mine will open again soon so that it can make a major contribution to the Cornish economy. There has been a lot of reference today to refining the products themselves, and one only has to look in the constituency of the hon. Member, as well as where I live in Hayle, to see the consequences of smelting for the environment. It was certainly known in the 19th century, when a lot of smelting went on in the town, how it impacted the health of people in the area. We have only to look at what is known in the area as scoria stone, which is an incredibly heavy and extremely brittle stone that was the by-product of the smelting process, to see the environmental impact of the process. It is really important, therefore, to use modern technologies in the UK to ensure that it does not have those detrimental impacts, on both the health of the people living nearby and the environment, if the UK is to achieve the objective proposed by the hon. Member for Camborne and Redruth to avoid the necessity of exporting the minerals extracted in the UK to the other side of the globe for refinement. The technologies need to be developed. As the hon. Member for Camborne and Redruth and others have emphasised, there is a great deal of skill, both academically and in terms of training, available in the local economy and through local colleges to develop those technologies, and to improve our chances of being able to take full advantage of the opportunities that lie ahead. They are exciting opportunities that I hope the Government will do their best to encourage. The Liberal Democrats have called on the Government to develop a new industrial strategy to tackle the big challenges of our time—supercharging the green economy, boosting living standards, addressing regional inequalities and creating the conditions for sustainable growth. We would rebuild business and investor confidence by committing to fiscal responsibility, respect for international treaties and the creation of a stable business environment. We would effectively communicate the objectives and tools of the industrial strategy to industry, and provide clear signals for investment, as well as consistency and confidence for future business decisions. We would create broad access to training and skills for the purposes of developing apprenticeships. We would set up incentives for research and development, decarbonisation and the take-up of digital technologies, especially among SMEs. We would ensure that the UK’s regulatory, research and development, and tax frameworks are geared towards fostering innovation. We would set up a plan for investment in key infrastructure to enable the industrial strategy, covering areas including rail, building insulation, the national grid and electric vehicle charging. We would create a thriving manufacturing sector by investing in the skills of the future; promoting zero carbon transport and energy efficiency; harnessing affordable clean energy; and adopting an ambitious international trade policy. We would re-establish the industrial strategy council and put it on a statutory fitting to ensure vital oversight, monitoring and evaluation of the industrial strategy and to explore ways in which to improve interdepartmental work across Government. One business in Cornwall told us that the national wealth fund’s minimum project size is too high to suit mining exploration—the exploratory stage—which might have a detrimental impact on exploring new opportunities for mineral extraction in places such as Cornwall. If mining exploration does not happen, the much bigger extraction and processing projects cannot come forward. I therefore urge the Minister to look at that issue. The critical minerals strategy says: “We will reduce barriers to domestic exploration and extraction of critical minerals” and “Carry out cutting-edge research and development to solve the challenges in critical minerals supply chains…We will promote innovation and re-establish the UK as a centre of critical mineral and mining expertise.” But Cornish mining companies say that they face years of bureaucratic hurdles simply to get the Government to recognise their status as R&D-led companies, which is vital to their application for EIS tax relief. Does the Minister believe that the Government are doing all they can to enable that kind of research and development in the sector? I am delighted that the Minister will be coming to Cornwall next year; we will certainly give her a very warm welcome when she comes. We look forward to having very constructive and productive talks with her.

10:19:00

It is a pleasure to serve under your chairmanship, Mrs Harris, and I congratulate the hon. Member for Camborne and Redruth (Perran Moon) on securing this important debate. As he set out, critical minerals are essential for our transition away from fossil fuels while offering economic opportunities in areas where extraction is undertaken, such as Cornwall. I remember many family holidays to Cornwall—coming from Norfolk, we did have to get away sometimes—and enjoying visits to the Poldark tin mine, which I believe is in the constituency of the hon. Member for St Ives (Andrew George). Clearly, a lot of focus has been on Cornwall, but—as has been mentioned—this is an opportunity across the country. The International Energy Agency has stated that the world in 2040 is expected to need four times as many critical minerals for clean energy technologies as it does today, so as a nation, we need the right materials if we are to make that clean energy transition. We need the lithium, cobalt, and graphite for electric vehicle batteries; the silicon and tin for our electronics; and the rare earth metals for electric cars and wind turbines. While we will always rely on international supply chains, we have to maximise where the UK can produce domestically and make our supply chains more resilient. As has been said, that will also boost our energy and national security. A strong case for increasing the domestic production of minerals has been made by the hon. Member for Strangford (Jim Shannon), as well as the hon. Member for St Austell and Newquay (Noah Law), who referred to the importance of skills. I hope that he would acknowledge the work that his predecessor, Steve Double, did in pushing that agenda in the last Parliament. I admire the passion that the hon. Member for Bournemouth East (Tom Hayes) has to go more fast and furious; I wonder if his constituents will share that when they see not the promised £300 cut in energy bills, but the pylons being imposed on communities without proper consultation, particularly in my constituency and across the east of England. We are moving to a world powered by critical minerals and demand is increasing. Indeed, the UK’s 2022 critical mineral strategy, to which the hon. Member for St Ives referred, stated that global demand for electric vehicle battery minerals is projected to increase by up to 13 times over the next decade or so, exceeding the rate at which new primary and secondary sources are being developed. The UK has 18 metals and minerals on its critical raw minerals list, and another six are classified as having elevated criticality. China is the biggest producer of 12 of those minerals. Despite the significant deposits of lithium, particularly in Cornwall, and the tin, manganese and tungsten across south-west England, Cumbria, Wales and Scotland, we are almost wholly dependent on imports for our critical minerals, as has been mentioned. Many of the UK’s vital sectors rely on those minerals, which is why last year we launched a task and finish group on industry resilience, particularly focusing on aerospace, energy, automotive, chemicals and other sectors. While we were in government, we adopted a comprehensive approach to critical minerals, engaging readily with our foreign partners and allies, as well as with industry. That is why we published the first ever critical minerals strategy, which was then refreshed last year to reflect the changing global landscape and the pace of change we need to see. In partnership with the British Geological Survey, we launched the Critical Minerals Intelligence Centre to help to monitor the supply chain risks and assess the importance of different minerals over time, a point made by the hon. Member for Middlesbrough South and East Cleveland (Luke Myer). We also ramped up work through the Critical Imports Council in April, so there is a lot for this Government to build on. We know that critical minerals supply chains are complex and vulnerable to disruption, and that production is centred and highly concentrated in certain countries. In some cases, single nations are responsible for half of worldwide production, and are often vulnerable to aggressive debt regimes implemented by states with which the UK directly competes. The level of concentration is even higher for processing operations: China’s share of refining is about 35% for nickel, 50% to 70% for lithium and cobalt, and around 90% for rare earth elements. All those issues present challenges to the UK’s security of supply, so we must accelerate the growth of our domestic capabilities and back UK critical minerals producers to take advantage of opportunities along the whole length of the value chain. Cornish Lithium, in the constituency of the hon. Member for Camborne and Redruth, is enjoying successes in extracting lithium from granite. Weardale Lithium is also exploring the potential for lithium extraction and geothermal energy from water. Green Lithium, which has also been referred to, has plans to build and operate the first UK merchant lithium refinery in Teesside. There are opportunities around the country. The UK is also well placed to lead on midstream processing, including refining and materials manufacturing, building on the globally competitive chemicals and metals sectors that we enjoy. That is why the previous Government invested in critical minerals programmes and explored regulatory mechanisms to promote battery and waste electrical and electronic equipment recycling. As of April, there were 50 projects at various stages of development to mine, process and recycle critical minerals domestically. The UK is a pioneer in recovering critical minerals from waste. Companies such as Altilium, which has operations in Plymouth, are working to develop battery recycling capabilities, so that the raw materials can be extracted and can re-enter the supply chain. That will become increasingly important because, by 2040, recycling is expected to account for up to 20% of battery mineral demand for electric vehicles. Critical minerals will become ever more important as we seek to bolster our energy security and domestic resilience. There is particular demand for their use in electric vehicles. As has been referred to by the hon. Member for Bournemouth East, in government, we took the decision to push back some of those targets: we moved the target for ending the sale of new petrol and diesel cars from 2030 to 2035, bringing us in line with the major car manufacturing countries around the world. Yet this Government have tied themselves in knots about their policy on mandates. Can the Minister provide some clarity on the Government’s policy to address the uncertainty facing supply chains, including those in the critical minerals sector?

I am grateful to the hon. Gentleman for mentioning Weardale Lithium, which is in my constituency, as is Northern Lithium. The regulatory framework for companies trying to invest in lithium is not supportive, and they face waits of one or two years for planning approval from the Environment Agency. I will also say that Nissan in Sunderland is not at all happy: it already had a plan in place to hit the 2030 target for electric vehicles. It is going to stick to its original plan, but it wants a Government that will match its ambition.

I am grateful to the hon. Gentleman— I hope he will forgive me; I did not realise that Weardale Lithium is in his constituency, otherwise I would have acknowledged that. He is absolutely right about the regulatory issues that we face. Every MP will know of the difficulties that the Environment Agency causes companies due to its slow decision making and the fact that there is often a lack of certainty. Different car manufacturers, even just in this country, have different views. I acknowledge Nissan’s point, but other companies in this country take a different view. The hon. Member for Camborne and Redruth, who secured the debate, said that we need to elevate the importance of this issue and give it a much higher profile. I do not disagree, although I would say that we have set out quite a strong foundation for doing that. Given the centrality of the issue, I was surprised that there was only one passing reference to critical minerals in the Government’s industrial strategy, published a month ago, which is supposed to be the Government’s blueprint for growth. Given that passing reference, are critical minerals really a priority issue for the Government? I hope we will get some reassurance from the Minister on that. Business confidence has plummeted as a result of the Budget. Although there is an abundance of minerals in the ground, especially in areas that need investment and more jobs, does the Minister recognise the damage that has been done to the UK’s attractiveness to investors as a result of the measures in the Budget? Apparently the Minister will announce that the Government are launching a critical minerals strategy next year—wow. Given the importance of the issue, why is there not more urgency from the Government to do that? That strategy joins a long list of other consultations and commitments that will come in that year. Labour Members have had 14 years to get ready, but they do not seem to be. Industry needs certainty about what the plan is to ensure that our critical minerals supply chains are strong, sustainable and resilient for now and for many years to come. Let us hope that the Minister can offer that security.

10:29:00

It is an honour to serve under your chairship, Mrs Harris, and a pleasure to speak in such an important debate. I congratulate Parliament’s official tin champion, my hon. Friend the Member for Camborne and Redruth (Perran Moon), on securing this debate. I thank him for the conversations we have already had about tin in particular and critical minerals more broadly; it is a joy to have someone with such enthusiasm, passion and knowledge joining us in Parliament. My hon. Friend has already done much in his time in Parliament to support critical minerals—tin, in particular —in his area, and he is an active member of the all-party parliamentary group, to which he brings genuine passion. I look forward to visiting his constituency in the spring or the early part of 2025 to talk more about what can be done in his area. His speech summed up the challenges and opportunities very well. He spoke about what more we can do, and how that will impact on economic deprivation and help our country’s security. He pointed to many interventions that he thinks the Government should be looking at, which I will come to later. We are developing a strategy that will cover a lot of the issues. The hon. Member for Strangford (Jim Shannon) talked about Northern Ireland and the engagement that the UK Government should be having with colleagues there. He is right that a UK strategy could not be developed without engaging our partners—and I can absolutely give him that reassurance. He talked about mining in Northern Ireland, and about salt. I recommend that he reads a book called “Material World: A Substantial Story of Our Past and Future” by Ed Conway, if he has not already done so; it includes a whole chapter on salt and how important it is for the world, which is fascinating. My hon. Friend the Member for Bournemouth East (Tom Hayes) talked sensibly about the south-west and the opportunities that can come from critical minerals. He talked about the Camborne School of Mines, and about what more we can do on skills. I will come to that later. The spokesperson for the Lib Dems, the hon. Member for St Ives (Andrew George), made a thoughtful speech, a lot of which I agreed with. I think he will be pleased with what we have done. He referenced, as did the shadow Minister, the hon. Member for North West Norfolk (James Wild), the previous Government’s strategy. That strategy was brought in by Kwasi Kwarteng—remember him?—who a couple of months later became the ill-fated Chancellor of the Exchequer; he probably looks back on that strategy with some wistfulness about what he managed to achieve. What I would say about the previous Government’s strategy is that it included a lot of, “We would like to do more of this”, “We want to do a little bit more of that”, and “We would like to encourage this”, but it did not set any particular targets, or have any deliverables or accountability. In fact, the Foreign Affairs Committee criticised it for its lack of ambition and progress; I think that speaks for itself. The hon. Member for North West Norfolk made a slightly bizarre speech, in which he referenced the 18 critical minerals. There was an announcement last week, which has been referenced by several Members, that there are no longer 18 but 34 critical minerals. I know it is difficult being in opposition—there is a lot less support than there is in government—but I would expect the shadow Minister to be up to date on these things. The shadow Minister also raised the electric vehicle mandates. To be clear, the previous Government pushed back the ultimate target from 2030 to 2035, but did not push back any of the stage posts by which car manufacturers had to reach that target. He said that this Government have tied themselves in knots, but the reality is that we have inherited those knots; they are the problems that we are now dealing with. We are having to consult on and look again at some of the issues, because the car manufacturers are crying out for support. Everybody who has spoken talked about how important critical minerals are for the industries of tomorrow and how much more we will need them in the future. Whether it is in advanced manufacturing, clean energy, defence or digital technologies, we know that we will need more. Last week, the Critical Minerals Intelligence Centre published its latest list of critical minerals, increasing the number from 18 to 34 and adding the likes of nickel, aluminium and titanium to the UK’s criticality list. I know that my hon. Friend the Member for Camborne and Redruth was very pleased that tin is now on the list as well. I thank the British Geological Survey, which runs this process, for the task it undertook, and for its vital work looking at the volume and variety of materials and minerals needed for our economic growth and clean energy ambitions. Economic growth is the absolute driving force of this Government, which is why we have published our industrial strategy Green Paper and will publish the final industrial strategy in the spring. It will bring stability and a long-term plan, and will break down all barriers to growth, including skills, technology and R&D. It will be the blueprint for growth in our most important sectors. If growth is the vehicle that gets us to a pro-innovation, pro-worker, pro-jobs economy, then critical minerals is the fuel at the heart of that strategy. I am pleased to confirm that the Department for Business and Trade will publish a critical minerals strategy next year, which will support the industries of tomorrow, explicitly target UK strengths, articulate the impacts on people’s lives, deliver for businesses and create new jobs across the country. The strategy will be ambitious. I want it to set targets. It will cover domestic production, the circular economy, the UK’s future demand, international partnerships, and responsible and transparent supply chains. In partnership with our stakeholders, we will consider the best way to track progress to ensure that we can be held to account for delivering on our promises. Starting with domestic production, I know that in Cornwall and Devon we have several promising lithium, tungsten and tin mines seeking to restart commercial production, which we have talked about at length. Since coming to power, we have seen progress made across multiple projects, including Imerys British Lithium, Tungsten West and Cornish Metals. Already we have seen interest from overseas, with like-minded allies partnering with UK projects, as represented by Rio Tinto’s strategic partnership with Green Lithium, the low-carbon lithium refinery in Teesside. One key tool is the national wealth fund, which we announced within days of coming to office. The national wealth fund recognises the importance of a secure supply of critical minerals and has a clear mandate to support them, as evidenced by its £24 million investment in Cornish Lithium.

I am grateful to the Minister; it is enormously helpful to hear her respond to these matters. She will have picked up the question I raised earlier about the national wealth fund and the fact that smaller projects, particularly those at the critical exploration stage, feel that they cannot take advantage of it. Is the Minister prepared to investigate that further?

I thank the Liberal Democrat spokesperson for his intervention. Yes, I have been making a list of issues to look at as we go through the strategy; that is certainly one, and there are several more. With our new strategy, we want to see more success stories right across the UK, from Cornwall to County Durham and beyond. Indeed, as I have said, the new strategy will represent all four nations of the UK. In Wales, the Royal Mint can now recycle electronic waste to recover critical minerals. In Northern Ireland, Ionic Technologies delivered a successful feasibility study for its rare earth oxides facility in Belfast. In Scotland, we have seen a resurgence in mineral exploration for nickel, lithium, manganese and more. As has been said, the UK boasts some of the largest lithium reserves in Europe. Industry forecasts reveal that by 2030 the UK may be able to produce 50,000 tonnes of lithium every year for 20 years. To put that into perspective, that would meet over half of the UK’s demand for electric vehicle batteries. Beyond lithium, the UK possesses the world’s largest platinum group metal refinery in the form of Johnson Matthey in Royston, as well as the only western source of rare earth alloys in the form of Less Common Metals in Cheshire. I hope that paints the picture of the growth potential for critical minerals. Unlocking this potential will require policy support as well as private investment, which is why our strategy will seek to attract billions of pounds in international investment. We all know that we cannot refine or mine our way into meeting the huge quantities of minerals that not only the UK, but the whole world, requires. That is why the strategy will place greater emphasis on making the most out of the minerals that surround us—in other words, recycling critical minerals for industrial batteries and wind turbines. Analysts say that EV battery recycling alone could provide almost half the required battery minerals by 2040. We have set up a critical minerals ministerial group, which is jointly chaired by me and the Secretary of State for Environment, Food and Rural Affairs. Our new critical minerals strategy will drive ambitious reform to promote recycling and the retention of critical minerals within the UK economy. In the meantime, I am delighted that the recycling of battery minerals is now in scope of the automotive transformation fund. It is great to see innovative businesses like Altilium benefiting from that funding by working to bring critical minerals recovery from lithium-ion black mass to the UK. Beyond battery minerals, the UK is building on its world-leading R&D strengths. In September, Innovate UK awarded £3.5 million to nine UK projects, working to increase the security of supply of rare earth elements as part of the climates fund. Our strategy will be underpinned by data, mapping out UK industry demand for critical minerals. DBT is partnering with the Critical Minerals Association, the Materials Processing Institute and Frazer-Nash Consultancy to evaluate the opportunity for increased recycling and midstream processes to take place on these shores. We will also make use of the Critical Minerals Intelligence Centre and its forthcoming foresight studies detailing demand in key technologies. Even with increased domestic production in the UK, the reality is that we will still need diverse and resilient international supply chains to drive industrial growth, and we have debated this morning the impact of a small number of countries providing the vast majority of our supply. We will deepen our international collaboration through a more targeted approach, working with big trading partners, like-minded mining nations and producer countries. We also intend to work through multilateral initiatives, including the Minerals Security Partnership, to secure the critical minerals needed to realise our growth mission. In that context, I welcome the fact that UK Export Finance has had an expanded mandate since the Budget to finance overseas critical minerals projects that secure supply for the UK’s high-growth export industries. We must be mindful of the importance of responsible mining. Apart from anything else, a responsible supply chain is a much more resilient one, and that must be embedded into everything we do. My hon. Friend the Member for Camborne and Redruth and I are both speaking today and tomorrow at Europe’s largest conference on critical minerals, which is taking place right here in London. That is no surprise, because the UK is the global hub for mining finance. The UK’s markets are some of the strongest and deepest globally, and the Government are committed to building on those strong foundations to ensure that they continue to deliver for firms and investors, supporting growth, including through our reforms to the UK listing rules. We will continue to work with our friends and partners in industry to ensure that the city plays a leading role in promoting investment into clean critical minerals projects at home. I praise my hon. Friend the Member for St Austell and Newquay (Noah Law) for his speech. He chairs the all-party parliamentary group and brings a huge wealth of knowledge to this place. In particular, he focused on skills, and on the importance of Skills England and ensuring that all the strategies are joined up. The industrial strategy, Skills England and our critical minerals strategy all need to feed into the same outcome: to secure jobs and growth for our communities and our people. In conclusion, the Government are serious about the opportunities that critical minerals will bring to our country; they will fuel the next 10 years of innovation, clean growth and economic renewal. I look forward to working closely with industry—which I am already engaging with and talking to—and academia, as we develop our strategy and make our ambitions a reality.

10:44:00

Thank you again, Mrs Harris, for chairing the debate. I thank all hon. Members who have participated. My hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer) made excellent points about the critical minerals list. My hon. Friend the Member for Bournemouth East (Tom Hayes) highlighted the importance of critical minerals for green economic transition. My hon. Friend the Member for St Austell and Newquay (Noah Law) unsurprisingly banged the drum for lithium in the clay country, but also importantly highlighted the supply chain insecurity that forms the basis of the debate. The hon. Member for St Ives (Andrew George) commented on working with local conservationists. Further to the example he gave, I draw his attention to the Red River in my constituency, where water being removed from South Crofty mine is being cleaned, with the alkaline content altered slightly, and then pumped back into the river to improve the quality of the water and the ecology. I also draw his attention to modern smelting practices, which are completely transformed and do not have the same levels of environmental risk as they did back in their heyday. It is unrealistic to expect domestic resources to meet all the UK’s demand for critical minerals. I do not seek to suggest that we can. What I advocate, and will continue to work towards, is the maximisation of what we have. We must build industry to improve the security of the supply chain, underpin our energy transition in a responsible and environmentally-friendly way, improve our export position, and provide good, well-paid, long-term jobs for local communities across some of the most deprived areas of the UK. We cannot afford to wait. If we do, the opportunity will pass us by. Supporting this industry today will ensure that it becomes a beacon of success for the UK economy. On the other hand, failure to support the industry now exposes us to a multitude of risks. Unquestionably, critical minerals are central to the Government’s overall economic ambitions, and I am delighted to support those ambitions in any way I can. I thank the shadow Minister for his exhibition of whataboutery in introducing pylons and the OZEV mandate into the debate. I think this debate is a little bit more important than whataboutery. I simply ask him whether he admits that the UK is over-reliant on and vulnerable to foreign supply. What on earth have the previous Government been doing for the last 14 years? I thank the Minister for her commitment to critical mineral production, and for the time she has given to allow me and others to explain the opportunities that exist in our communities. I am delighted that a critical mineral steering group has been established, and I conclude by thanking again all Members who have participated in the debate. Question put and agreed to. Resolved, That this House has considered the domestic production of critical minerals.

10:48:00