UK Parliament warns of strategic risks from Chinese mineral dependence

The UK House of Commons Business, Innovation, Science and Trade Committee has issued a report warning that heavy reliance on Chinese-dominated critical mineral supply chains poses a threat to national defense, artificial intelligence development, and net-zero emissions goals.

Citing International Energy Agency data, the committee noted that China ranks first in the refined output of 19 out of 20 strategic minerals, maintaining an average market share of 70 percent. Significant bottlenecks exist in refining and processing, with China controlling 95 percent of global gallium and 93 percent of germanium production. These metals are essential for advanced semiconductors used in radar, communications, and electronic warfare.

The report highlights the risk of economic coercion, referencing a 2010 incident where China restricted rare earth exports to Japan. To mitigate these risks, the committee urges the UK government to collaborate with G7, EU, and CPTPP members to form a “buyer’s club” to invest in alternative mining and refining facilities.

Additional recommendations include establishing a critical mineral reserve for defense, creating an “anti-coercion instrument” in legislation, and addressing domestic challenges such as high industrial electricity costs and insufficient metal recycling capabilities.