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We've published a new policy brief looking at China's critical minerals strategy. Decarbonisation through renewables, electric vehicles and a new energy storage system will substantially increase the UK’s demand for critical minerals. Read the paper: https://chinaresearchgroup.org/research/the-uk-and-china-critical-minerals …pic.twitter.com/QIbZ0UCaYb
.@TomTugendhat and @juliapamilih wrote in @timesredbox on how the UK's net zero push will create new vulnerabilities on China for rare earths unless we take steps now to build resilience.https://www.thetimes.co.uk/article/depending-on-china-for-rare-earth-metals-leaves-britain-vulnerable-03t2k6vxk …
That's because China controls up to 90% of processing and refining of rare earths, and has a near-monopoly on the production of rare earth magnets.pic.twitter.com/FdIvvemR5L
Beijing is unlikely to deliberately cut off supply. But this has created a situation of serious strategic dependence - as well as raising ethical questions of opaque supply chains and environmental challenges from high-carbon production.
China's strategy is evolving. In 2020, it became the world’s largest importer of seven types of rare earths. Offshoring low-value mining means that critical minerals will play an increasingly important role in the Belt and Road, complicating attempts to reduce dependence.
The state model is here to stay. Most developed industrial economies are now building regionalised or domestic sovereign supply chains as a matter of national security. The US, Japan and Australia are spending hundreds of millions of dollars on stockpiles, subsidies and support.
In the face of China’s dominance and rising state-backed competition for access to critical minerals, the UK needs a resilience-focused strategy in order to protect its manufacturing base and national security.
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