The funding is designed to bolster domestic production, reduce reliance on imported materials and support the development of more resilient supply chains for minerals used in products ranging from smartphones and white goods to electric vehicles.
Ministers say the package will help shield UK industry from global supply disruptions while creating high-value jobs and supporting economic growth through the wider Industrial Strategy.
The move signals growing recognition of secondary materials and “urban mining” as strategically important sources.
Three-part funding package
The £50 million programme will be delivered through three pillars, spanning manufacturing, innovation and supply chain coordination.
The largest allocation – £25 million – will fund a new Critical Minerals Accelerator, supporting collaborative projects across extraction, processing and recycling. The government says this will help speed up innovation and bring more commercial-scale projects to market.
A further £20 million will establish a national Magnet Hub, intended to develop and scale rare earth magnet manufacturing in the UK. The hub will also include skills and training programmes to support workforce development.
The final £5 million will go towards a Demand Aggregation Platform, designed to help UK businesses consolidate demand for critical minerals across sectors. Ministers say this will improve purchasing power, unlock investment and help secure supplies through strategic partnerships.
The package builds on more than £200 million already committed to the sector through mechanisms including the National Wealth Fund, DRIVE35 and the UK Shared Prosperity Fund.
Critical minerals recycling
Launching the programme, Industry Minister Chris McDonald visited the Wilton Centre in Teesside, where he toured two firms operating at the forefront of critical minerals recovery and processing.
Among them was DEScycle, which is nearing completion of its demonstration facility for recovering critical minerals from electronic waste.
The company’s co-founder, Fred White, said: “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, skilled workforce makes it the ideal location for our facility, deploying infrastructure directly supporting the UK’s Critical Minerals Strategy.
The government also visited Seloxium, another Teesside-based company focused on advanced mineral processing.
Strategy moves into delivery phase
The investment forms part of the government’s broader Critical Minerals Strategy, which aims to secure the UK’s access to minerals essential for defence, renewable energy, digital technology and manufacturing.
The strategy focuses on three key areas: accelerating domestic extraction, expanding processing capacity and increasing recycling rates.
Jeff Townsend, founder of the Critical Minerals Association, commented: “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 £50 million grant programme being used to accelerate strategically important UK projects as they reach maturity.”
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