The UK Government has launched a strengthened Critical Minerals Strategy, backed by up to £50 million in new funding, aimed at securing the essential materials that power everything from smartphones to infrastructure, EV batteries and renewable technologies. As construction companies increasingly rely on advanced materials, this policy shift could reshape procurement, supply chains and long-term planning across the sector.
According to the strategy document, the Government has set three major targets:
- 10% of the UK’s mineral needs to be produced domestically by 2035
- 20% of minerals to be sourced through recycling by 2035
- At least 50,000 tonnes of lithium to be produced in the UK by 2035, a crucial step for battery production and electrified infrastructure
The announcement is tied to a wider industrial strategy that aims to reduce overreliance on imports, diversify supply chains and protect the UK economy from international shocks.
Why This Matters for the Construction Sector
Material Security for Large-Scale Projects - from tunnelling machines to structural technologies and smart buildings, UK construction increasingly relies on components containing critical minerals: lithium, cobalt, graphite, rare earth elements. Supply chain disruptions can delay major infrastructure schemes or increase costs significantly. Securing domestic supply reduces that risk.
More Stable Pricing Over the Next Decade - global mineral prices have been volatile. By boosting domestic production and recycling, price stability could improve by helping contractors forecast costs more accurately when bidding on long projects.
Stronger UK Manufacturing Base - more minerals sourced at home means more local processing, battery manufacturing and advanced materials plants. That translates to:
- More regional jobs
- More UK-based suppliers
- Reduced carbon footprint in transportation
- More resilience for major construction frameworks
Alignment With Net-Zero Requirements - the government is clearly positioning minerals as part of the net-zero and modern infrastructure pipeline. This includes:
- EV charging expansion
- Electrified plant machinery
- Battery storage systems on construction sites
- Large-scale renewable projects
This strategy strengthens the supply chain behind all of these.
Industry Minister Chris McDonald emphasised that this is bold action to shore up supply chains, ramp up domestic production and back businesses with the investment they need to create new jobs and drive growth.
The message is clear; securing minerals is no longer a niche issue, it’s economic security. For years, the UK has been heavily dependent on overseas suppliers for critical minerals, sometimes up to 90–100%. The new strategy acknowledges that future infrastructure, green technology and industrial productivity rely on breaking this dependency.
Construction firms, especially Tier 1 contractors, consultants and supply chain partners should now:
- Review long-term material procurement strategies
- Assess exposure to overseas mineral markets
- Explore potential UK-based alternative suppliers
- Track government funding windows for innovation and recycling
This is not just a materials issue. It's a risk management and strategic resilience shift for the entire sector. The UK’s new Critical Minerals Strategy is a significant step toward strengthening the backbone of modern construction and infrastructure. With funding unlocked and ambitious 2035 targets set, construction businesses operating in London and across the UK should recognise this as a defining moment to future-proof their supply chains.
LCM will continue to monitor developments as the Government rolls out funding programmes and domestic mineral production ramps up.
