£15m government funding to recycle critical minerals

Tonnes of rare earth elements – essential for technology such as electric vehicles, wind turbines and smart phones – could be recycled in future thanks to £15 million of government funding for cutting-edge research to strengthen supply of critical materials.

Rare earth elements are a family of critical minerals used in a wide range of products, ranging from laptops to aircraft. But supply chains are complex and markets are volatile, with most critical minerals sourced from just a handful of countries. This leaves UK jobs and industries vulnerable to market shocks and geopolitical events, which is why the government is working to help UK firms establish resilient and sustainable access to critical minerals.

The £15 million funding will launch the CLIMATES programme, delivered by Innovate UK, to develop work on rare earths by researchers and businesses across the country. This will support innovations in the recycling of rare earth elements, as well as research and development, engagement with international partners and activities to identify and support future skills needs. The programme will also look to unlock further private investment in projects to develop resilient supply chains for these important resources.

Nusrat Ghani, Minister of State at the Department for Business and Trade, said: ”Rare earth elements underpin so much of what makes everyday life and work possible, from the cars we drive to the phones we use. It is essential that, in a rapidly changing world, we do all we can to ensure resilient supplies of these and other critical minerals.

“The impact of Russia’s illegal war in Ukraine on energy prices has been a timely reminder of how important supply chains are for all parts of our economy. That’s why we are laser-focused on securing robust supply chains, for the growing, green industries that will deliver jobs and prosperity across the UK in the decades to come.

“It is because of these global challenges that the government will refresh the delivery approach of the UK’s Critical Minerals Strategy, which will be published later in 2023. To deliver on the Strategy’s commitment to collaborate internationally, we have continued to engage bilaterally and across a range of multilateral forums, notably the Minerals Security Partnership (MSP), the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the G7 and the G20.

“Production of critical minerals of all kinds is expected to rise sharply – some as much as 500 per cent – by 2040. The government is working to ensure the UK secures a strong foothold in this growing market by supporting key investment in related industries.

“In July 2022 Pensana launched the UK’s first-ever magnet materials refinery in East Yorkshire, a £145 million facility that will secure hundreds of jobs and form an important part of the UK’s electric vehicle supply chain. In November 2022 Green Lithium announced they would build the first large-scale lithium refinery anywhere outside of Asia, in Teesside. Both investments are supported by the government’s Automotive Transformation Fund.”