UK Export Finance Supports Overseas Projects to Secure Critical Minerals for UK Industries

UK Export Finance (UKEF) will now provide financial support for overseas projects that supply critical minerals essential to major UK industries, as announced by the Chancellor. This move aims to help British industries access a stable and long-term supply of these crucial resources, including minerals like lithium, graphite, and cobalt, which are vital to sectors such as automotive, defence, and aerospace.

Critical minerals play a key role in emerging and sustainable technologies like electric vehicles, solar panels, and wind turbines. The financing from UKEF will be offered in the form of credit guarantees to overseas companies, enabling them to secure debt financing for projects that supply UK exporters with both raw and processed critical minerals. By securing these supply chains, the UK aims to build economic resilience and reduce the risks of disruptions that could impact major industries.

UKEF is expected to collaborate with other export credit agencies and public financial institutions to fund eligible projects, supporting investment in new supply routes. This financing offer will help British manufacturers secure contracts with suppliers in mineral-rich countries, including Australia, which has significant lithium deposits.

Jonathan Reynolds, Secretary of State for Business and Trade, emphasized the importance of this move, noting the intense global competition for critical minerals and their role in industrial growth and the UK's net zero journey. He stated, "This financing offer will help UK companies build international partnerships and secure their critical mineral needs, supporting both industrial growth and leadership in emerging technology."

Kirsty Benham, CEO of the Critical Minerals Association, welcomed the initiative, highlighting its significance for UK manufacturers and supply chain security. "This offer demonstrates the importance of critical minerals to the UK Government and showcases the UK as a serious buyer of these strategically important materials," she said.

Sean Sargent, CEO of Green Lithium, also supported the initiative, citing its potential to strengthen international relationships and supply chains. He noted that Green Lithium’s refinery in Teesside will benefit from this initiative as it aims to import critical raw materials and export battery chemicals after processing.

The UK government, a founding member of the Minerals Security Partnership (MSP), continues to play a pivotal role in securing stable access to critical minerals. This announcement comes alongside the recent launch of an MSP finance network, with UKEF working alongside other financial bodies to de-risk and increase financing for critical mineral projects.