Will US-UK Critical Minerals Deal Boost Mining Investment?
The United Kingdom and the United States have formalised a landmark partnership aimed at securing the global supply chains of critical minerals.
At a summit in Washington DC involving over 50 nations, Foreign Office Minister Seema Malhotra and US Under Secretary of State Jacob Helberg signed a Memorandum of Understanding (MoU).
The agreement is designed to accelerate efforts to secure the materials essential for domestic production and the industries of the future.
It is the latest agreement in a global effort to mitigate geopolitical risks and foster a more resilient, diversified market for the minerals that power everything from consumer electronics to aerospace defence systems.
Aligning with the critical minerals strategy
This collaboration is a crucial pillar of the UK’s Critical Minerals Strategy, which was further bolstered last November.
The strategy is supported by up to £50m in new funding intended to turbocharge domestic extraction and processing capabilities. A key objective of this policy is to ensure that by 2035, no more than 60% of the UK’s supply of any single critical mineral is imported from a single country.
By formalising ties with the US, the Government is taking action to diversify its mineral sources and protect national economic interests against market volatility and non-market pricing practices.
Driving private investment into British mining
The partnership is expected to act as a catalyst for significant private sector involvement.
By aligning economic policy tools and coordinating investments, the UK and US aim to encourage capital flow into mining, separation and refining projects. This is particularly vital for the automotive and clean energy sectors, which face soaring demand for battery metals and rare earth elements.
Industry Minister Chris McDonald highlighted the commercial impact: “This partnership with the United States will boost minerals projects across Britain and drive new investment into businesses. Our Critical Minerals Strategy stressed the importance of forming international partnerships to diversify our supplies and this signing does exactly that.”
A timeline of UK critical mineral diplomacy
The UK has been rapidly expanding its network of bilateral agreements to ensure resource security:
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November 2025: Publication of the updated Critical Minerals Strategy and £50m funding pledge
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Late 2025: Bilateral agreements signed with key resource-rich partners, including Australia and Canada
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February 2026: Signing of the UK-US Memorandum of Understanding in Washington DC
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March 2026 (Projected): Commencement of coordinated investment reviews for domestic refining projects
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2035 Target: Deadline to cap single-country import reliance at 60%.
Strengthening domestic extraction and refining
Currently, the UK’s critical minerals sector is a substantial economic driver, contributing £1.79bn to the economy and supporting over 50,000 jobs.
There are more than 50 active projects across Britain focused on extracting and refining vital materials. The new MoU aims to streamline permitting processes, allowing these projects to reach production faster.
Seema said: “As demand for critical minerals around the world continues to rise, this Memorandum of Understanding with the United States underscores our commitment to working as close allies to build resilient, diversified global supply chains. This is an important step in safeguarding long‑term economic growth.”
Mitigating geopolitical risks for national security
Beyond economic growth, the agreement is about national security. By working together to prevent non-market practices in pricing and ensuring equitable market access, the UK and US are shielding their defence and tech industries from external supply shocks.
The MoU focuses on the entire lifecycle of minerals – from the mine site to the final processing stage. Seema added: “This is an important step in safeguarding long‑term economic growth at home and protecting the UK’s interests around the world.”
