Britain could be at risk of “economic blackmail” because of and China’s grip on critical minerals, a think tank has warned. The Henry Jackson Society (HJS) warned the UK could be left vulnerable to hostile states if it does not secure the resource.
Dr Helena Ivanov, co-author of the report, said: “China’s grip on critical minerals is not just an economic issue – it is an existential one. If the UK and its allies do not diversify the minerals supply chain now, we will remain at Beijing’s mercy, unable to build the technologies of the future without China’s approval.”
Critical minerals power everything from electric vehicles to smartphones and fighter jets. China controls 70% of production and nearly 90% of processing.
Hostile states’ grip on critical minerals could put the UK at risk (Image: Getty)
HJS report co-author professor Matt Qvortrup said: “The UK must prevent alternative suppliers of minerals like Mongolia from falling into the hands of and China. Without action, British industry will be left vulnerable to economic blackmail. We must act now to ensure our energy and technological future is in our own hands.”
Countries like Mongolia, the Democratic Republic of the Congo and Chile sit on vast mineral wealth.
The US, EU, UK, Canada and Australia are pushing for domestic production and supply chain diversification but the report said they need to do more to counter China’s dominance.
The report added: “Without urgent action, the West and the rest of the world will remain dangerously reliant on China.”
The report, Geopolitics of Critical Minerals, comes as Ukrainian president said he was “ready to sign” a minerals deal with the US.
One possible version of the deal envisages that an “investment fund” will be set up for s reconstruction, which Ukrainian prime minister Denys Shmyhal said would be managed by Kyiv and Washington on “equal terms”.
According to the text, will contribute 50% of future proceeds from state-owned mineral resources, oil and gas to the fund, and the fund will then invest “to promote the safety, security and prosperity of “.
Meanwhile, one agreement said the US government will, subject to US law, “maintain a long-term financial commitment to the development of a stable and economically prosperous ”.
The prospect of a minerals deal was first proposed by Mr Zelensky last year as a way to offer the US a tangible reason to continue supporting .