The Chancellor has announced that UK Export Finance (UKEF), the government’s export credit agency, will offer financial support for overseas projects to source critical minerals.
Securing contracts that increase the UK’s ability to source critical minerals will help the UK build economic resilience and lower the risk of supply-chain disruption in major industries like automotive, defence, and aerospace.
Critical minerals are raw materials like lithium, graphite, and cobalt, which are essential to the UK’s largest export sectors.
They are used in emerging and sustainable technologies like electric vehicles, solar panels and wind turbines.
Helping UK exporters source critical minerals through credit guarantees
Financing will be offered through credit guarantees to overseas companies, helping them access debt financing for projects that help UK exporters source critical minerals, including raw and processed materials.
UKEF is expected to work with other ECAs and public financial institutions to finance eligible projects and support investment in new supply routes.
This would make it easier for UK manufacturers to secure contracts with critical mineral suppliers in countries with vast mineral deposits, including Australia, which holds large lithium deposits.
Jonathan Reynolds, Secretary of State for Business and Trade, explained: “As the energy transition pushes demand to new highs, this financing offer will help UK companies to get a seat at the table, build international partnerships and secure critical minerals.
“Helping exporters to access these vital resources will support UK industrial growth and our leadership in emerging technology.”
Building a raw materials supply chain in the UK
The UK government is a founding member of the US-initiated Minerals Security Partnership (MSP), which aims to help member economies source critical minerals.
The new announcement follows the recent launch of an MSP finance network. UKEF works with other export credit agencies and financial bodies to help de-risk and increase financing for critical minerals projects.
UKEF has also used its existing products to support UK capability in critical minerals production. It recently announced a guarantee supporting machinery exports to one of Central Asia’s largest copper-production facilities.
“We welcome the new export finance offering for critical minerals, which supports UK manufacturers and supply chain security,” said Kirsty Benham, Chief Executive Officer of Critical Minerals Association (UK).
“The offer demonstrates the importance of critical minerals to the UK government and showcases the UK’s strengths as a serious buyer of these strategically important materials.”
She concluded: “We look forward to working closely with UKEF and supporting the development of this offer into secure critical mineral supply chains for the UK and MSP partners that are resilient and responsible.”
