Britain and Saudi Arabia pledge to step up cooperation on key minerals. Subscribe to Electric Vehicle News Bitesize Podcast for FREE!
The UK has agreed to deepen its cooperation with Saudi Arabia on critical minerals as part of our plan to build partnerships around these important resources around the world.
Business Secretary Grant Shapps has agreed to deepen the UK’s cooperation with the Kingdom of Saudi Arabia on critical minerals and deliver on the government’s ambition to build more resilient critical minerals supply chains.
Through Saudi investment in the UK’s world-leading manufacturing and mining finance sector, and new opportunities for UK miners to do business in Saudi Arabia, the partnership paves the way for the UK and Saudi Arabia to work together to diversify the sources of key minerals. It will also be important to ensure that the UK’s supply chain for critical minerals is not overly dependent on one country, as supply is currently dominated by China.
The two countries will work together to take concrete actions and pool their respective advantages. We will formalize this relationship in the coming months.
Key minerals such as graphite and lithium are vital to the economy and are used in products ranging from laptops to airplanes. However, global markets are volatile and supply chains are at risk, leaving UK jobs and industry vulnerable to market shocks and geopolitical events.
Agreements like today’s will make UK supply chains more resilient and help supply vital green industries, creating growth and jobs now and for future generations. Saudi Arabia has one of the largest undeveloped critical mineral resources on the world market, worth around £1.3 trillion.
Business Secretary Grant Shapps said:
“Critical minerals underpin the things that make everyday life and work possible, from our cars to our phones. It is essential that we do all we can to ensure resilient supplies of these important resources.
“The impact of Putin’s illegal war in Ukraine on energy prices has shown us all how important international supply chains are to our economy, and why we can never be too reliant on any one nation. That’s why it’s so key that we work with partners like Saudi Arabia to make sure our supply chains are diverse and robust, supporting jobs and prosperity across the UK in the decades to come.”
The UK and Saudi Arabia will explore cooperating to find new sources of critical mineral supplies. This could mean promoting the UK’s world-leading manufacturing and mining finance sector to Saudi investment, or exploring new opportunities for UK miners to do business in Saudi Arabia.
The partnership will also build on the importance of stringent transparency and environmental standards to reduce business risk and encourage investment. Clear, internationally agreed rules are essential for a reliable supply chain.
From the UK’s leadership in international forums to the City of London’s work to increase market leadership, the UK is determined to use these relationships to build on efforts already underway to raise global standards.
This commitment builds on the previous objective set out in the Critical Minerals Strategy, published in July 2022, to work domestically, internationally and through markets to develop more robust reserves of these minerals. Given that the UK cannot meet all of its critical mineral needs domestically, it is hoped that today’s announcement will be the first of many such partnerships between the UK and other countries.
The agreement was struck by business ministers in Riyadh on the sidelines of the Future Minerals Forum, in another sign of the government’s focus on strengthening the UK’s supply chain for critical minerals. The UK will work closely with international partners to build the diverse and resilient supply chains needed to support the global economy in the coming decades.
Business Secretary Grant Shapps and Saudi Arabia Kingdom and Mineral Minister Bandar bin Ibrahim Alkhorayef agreed to strengthen cooperation in key minerals after the bilateral summit held by Riyadh.
The government continues to invest in schemes supporting more resilient critical mineral supply chains, including:
support for the UK’s first-ever magnet materials refinery in East Yorkshire, announced in July 2022. Pensana’s £145 million facility will secure hundreds of jobs and form an important part of the UK’s electric vehicle supply chain.
backing for Green Lithium, who announced in November 2022 they would build the first large-scale lithium refinery anywhere outside of Asia, in Teesside.
Both investments are backed by the government’s Automotive Transformation Fund.
In October 2022, the government announced a record £211 million in funding for the Faraday Battery Challenge to boost research and development across the battery industry.
This year, we anticipate releasing a Critical Minerals Refresh, which will recognize the changing global landscape and describe our approach to implementing the Critical Minerals Strategy.
The situation surrounding critical minerals – and which minerals are considered critical – is subject to constant change. In 2022, the British Geological Survey conducted the first criticality assessment in the UK, this was updated in early 2023. The BGS have now been entrusted by the government, to oversee the Critical Minerals Intelligence Centre, this centre will regularly update this assessment and provide policymakers with a variety of current data and analysis on supply, demand, and market dynamics.
The government utilizes the expertise of experts in critical minerals from various fields of academia, business, and government, through the Critical Minerals Expert Committee. The committee will continue to meet, it will provide advice on the implementation of the Critical Minerals Strategy.
The UK is already involved in international collaborations, such as the Minerals Security Partnership and the International Energy Agency’s Critical Mineral Working Group, that focus on developing responsible supply chains for minerals.
The government is also collaborating with like-minded international partners to enhance supply chain resilience.
The UK has a prominent role in developing international standards in the critical minerals supply chain through participation in the European Partnership for Responsible Minerals, the Extractives Industry Transparency Initiative, the United Nations, the G7, and others.
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