UK Export Finance Expands Support for Critical Mineral Projects Overseas
UK Export Finance (UKEF) will now provide financial backing for overseas projects that source critical minerals essential to major UK industries, such as automotive, defence, and aerospace. This move aims to secure long-term access to materials like lithium, graphite, and cobalt, which are increasingly vital for emerging technologies, renewable energy, and the transition to net zero.
The announcement, made by the Chancellor, underscores UKEF's role in financing overseas projects that supply critical minerals to the UK, helping diversify the supply chain and boost economic resilience. By extending credit guarantees to overseas companies, UKEF aims to help these entities secure debt financing for projects that supply both raw and processed critical mineral products to the UK.
Jonathan Reynolds, Secretary of State for Business and Trade, noted the global competition for critical minerals like lithium, tin, and cobalt. He emphasized that this financing initiative will help British companies secure vital resources, fostering international partnerships and supporting industrial growth as well as technological leadership in the transition to sustainable energy.
The financing is expected to involve collaboration between UKEF, other export credit agencies, and public financial institutions to fund projects that enhance critical mineral supply routes. The government hopes this will simplify the process for UK manufacturers to establish contracts with mineral-rich countries, such as Australia, a major lithium producer.
Kirsty Benham, CEO of the Critical Minerals Association (UK), praised the initiative, highlighting that it demonstrates the importance of critical minerals to the UK government. Sean Sargent, CEO of Green Lithium, echoed the sentiment, mentioning that the new financing support could aid businesses like Green Lithium's Teesside refinery in strengthening international supply chains.
The UK government, as a founding member of the US-initiated Minerals Security Partnership (MSP), continues its efforts to secure a stable critical minerals supply. The recent launch of an MSP finance network, involving UKEF and other financial bodies, is part of broader efforts to reduce investment risks in critical minerals projects. UKEF has also supported UK mineral capabilities, including a recent guarantee for machinery exports to a major copper-production facility in Central Asia.
