UK to invest $66 million in critical minerals to reduce import reliance

LONDON, June 22 (Reuters) - Britain will invest £50 million ($66 million) to boost domestic production of critical minerals, the government said on Monday, as it seeks to reduce reliance on concentrated global supply chains and strengthen economic resilience.

The funding will support projects across extraction, processing and recycling, aimed at securing materials used in products ranging from smartphones and fridges to electric vehicle batteries.

The move builds on more than £200 million already committed to the sector.

Industry minister Chris McDonald was set to launch the programme during a visit to a hub for industrial research in northeast England, where companies are developing technologies for metal recovery and processing.

Britain is stepping up efforts to secure supplies of critical minerals as demand rises and China retains a dominant position, accounting for about 70% of rare earth mining and 90% of refining.

"Critical minerals are vital for our national security," McDonald said.

Recent progress includes the opening of Britain's first commercial rare earth magnet plant in 25 years, operated by Mkango Resources' HyProMag unit in Birmingham, which uses recycled materials to produce magnets for electric motors and other technologies.

Britain has also sought to diversify access through partnerships with allies including the United States and South Korea, focusing on collaboration in supply chains, processing capacity and investment flows.

The new funding will be split across three pillars, including £20 million for a rare earth magnet hub, £25 million for an accelerator programme to help scale projects, and up to £5 million for a platform to aggregate industry demand and unlock private investment.

($1 = 0.7564 pounds)

(Reporting by Sam Tabahriti; editing by William James)