Teesside has been chosen by the government as the focus of a £50mn investment in critical minerals designed to secure the UK’s supply chains, cut imports and benefit customers for products like smartphones, fridges and electric vehicle batteries.
The funding will boost domestic production, support high-value jobs and reduce the UK’s reliance on overseas imports, helping to protect the economy from global shocks and supply disruptions, said the Department for Business and Trade (DBT).
Industry Minister Chris McDonald visited Teesside’s Wilton Centre today (22 June) to officially launch the government’s programme to industry and tour Seloxium and DEScycle – described by the DBT as two cutting-edge firms advancing critical minerals processing and metal recycling.
Vital to national security
He said: “Critical minerals are vital for our national security, and this targeted funding will support companies in ramping up domestic production, helping to create new jobs and opportunities in local communities, whilst building more resilient supply chains.
“Through our critical minerals strategy we’re leveraging Britain’s mineral wealth, attracting new investment and forming dynamic relationships with partners across the world to boost our economic security.”
With global supply chains increasingly concentrated and vulnerable to disruption, said the DBT, the UK had for too long relied heavily on a small number of international suppliers. This investment marked decisive action to strengthen economic resilience, secure vital materials and support long-term growth as part of the government’s industrial strategy.
The critical minerals strategy would back British companies to accelerate the extraction, processing and recycling of critical minerals, while investing in cutting-edge manufacturing capability and attracting private investment into the UK.
Building on industrial heritage
Founder of the Critical Minerals Association Jeff Townsend said: “The UK government has taken important steps to strengthen the critical minerals sector. As attention turns from policy development to delivery, it is encouraging to see the £50mn grant programme being used to accelerate strategically important UK projects as they reach maturity.
“As the home to Seloxium and DEScycle, the Wilton Centre sits in the heart of the North-East of England Process Industry Cluster. Building on its strong industrial heritage, the North East offers expertise in the recycling, processing and recovery of critical minerals alongside growing lithium development.”
Chief commercial officer and co-founder of DEScycle and co-Chair of the Circular Economy Working Group at the UK Critical Minerals Association, Fred White said: “We are nearing construction completion of our world-first demonstration facility, with key equipment installed ahead of commissioning. Our disruptive technology is reshaping how the UK views e-waste, transforming its treatment into a sovereign form of urban mining and Teesside’s world-leading industrial heritage [and] skilled workforce makes it the ideal location for our facility, deploying infrastructure directly supporting the UK’s critical minerals strategy.”
Three pillars
The DBT said the funding programme would be delivered through three distinct pillars:
- Magnet Hub: £20mn to establish a world-class national facility to develop, test and scale up rare earth magnet manufacturing, alongside skills and training capabilities;
- Critical Minerals Accelerator: £25mn to support collaborative projects across extraction, processing and recycling of critical minerals, accelerating innovation and commercialisation opportunities; and
- Demand Aggregation Platform: a new up to £5mn platform to help UK industry consolidate and pool its critical mineral demand across different industries, unlock investment and secure supply through strategic partnerships.
Together, said the Department, these measures would help grow the UK’s domestic capability across the critical minerals value chain, and build on over £200mn of funding already provided including through the National Wealth Fund, DRIVE35 and the UK Shared Prosperity Fund.
*This report is based on a press release from the DBT.
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