APPG Critical Minerals UK Midstream Meeting – 2nd April 2025

On 2 April 2025, Noah Law MP, Chair of the All-Party Parliamentary Group (APPG) for Critical Minerals, convened a meeting at the Houses of Parliament to discuss the growth of the UK's midstream sector and its importance for delivering the UK Critical Minerals Strategy. The session gathered over 80 stakeholders from industry, government, finance, and academia to address the challenges and opportunities in developing a resilient and responsible midstream in the UK.

Midstream Report Insights

Noah Law MP commenced the meeting by expressing enthusiasm for the recently released ‘UK Critical Minerals Midstream and Recycling Capacity’ report, published by the Department for Business and Trade and written by the Critical Minerals Association (CMA) UK in collaboration with Frazer Nash Consulting and the Materials Processing Institute (MPI). Its recommendations will play a pivotal role in shaping the UK's approach to supporting critical minerals refining and processing. Jeff Townsend, Founder of the CMA (UK), highlighted key findings from the midstream report, including the need for increased access to finance, energy cost efficiency, skills development and leveraging the UK’s leadership in the circular economy. Jeff said the report underscores the Government's recognition of the importance of the midstream sector and highlighted that the APPG is the perfect forum for stakeholders to communicate their perspectives to policymakers.

Industry Challenges and Opportunities

Callan Tree, representing Phillips 66, discussed the hurdles in obtaining supportive policies and the need to streamline regulations to enhance competitiveness. He emphasised the importance of securing offtake agreements and encouraging Original Equipment Manufacturers (OEMs) to invest in European production. Paul Atherley, Chairman of Pensana Rare Earths, announced the opening of a rare earth refinery project in Angola, noting its low energy costs and robust sustainability measures as attractive to financiers.

Strategic Infrastructure and Energy Considerations

The APPG’s Co-Chair, Baroness Lindsay Northover highlighted the necessity of a comprehensive industrial strategy, contrasting it with the previous government’s approach that favoured science strategies. She pointed out the escalating global focus on critical minerals is largely due to a race to re-industrialise and secure supply, and questioned the infrastructure improvements that are required to bolster UK midstream processing. Grant Smith, Chairman of Less Common Metals, compared the UK's infrastructure challenges to Australia's streamlined import-export systems, emphasising the need for reduced energy costs to support and attract businesses.

Circular Economy and Domestic Feedstock

Addressing the UK's limited domestic mining capacity, discussions turned to securing stable feedstock through recycling and utilising secondary materials. Stephen Hall, Chair of the Minor Metals Trade Association, highlighted the abundance of secondary materials in the UK, currently classified as ’waste’, and the need for innovation in recovery processes. The importance of government support in commercialising these innovations was also emphasised.

Policy Interventions and International Collaboration

This conversation explored various policy interventions, including tax incentives and grants, to stimulate investment in the midstream sector. Comparisons were drawn with the United States and Canada, where government-backed funding and tax incentives have successfully bolstered the growth of domestic supply chains. Jeff Townsend noted that the UK has the potential to lead in midstream processing and reprocessing, due to the country’s world-class facilities and expertise, especially its historical reputation in chemicals and manufacturing. Paul Atherley suggested adopting models like Japan's JOGMEC, where government partnerships with private equity firms fund mining operations in resource-rich partner countries.

Address by Former Ukrainian Deputy Minister

A highlight of the meeting was the unexpected address by a former Ukrainian Deputy Minister of Environment and Natural Resources, Dr. Volodymyr Ignashchenko, who underscored Ukraine's significant reserves of titanium and germanium— critical for microchips and AI technologies. He advocated for enhanced UK-Ukraine collaboration on critical minerals, aligning with initiatives proposed by the United States. The former minister emphasised that Ukraine could play a pivotal role in supplying the UK with critical minerals, thereby diversifying and improving resilience of supply. He also pointed to Ukraine's reconstruction investment fund as an avenue for UK and EU investors to engage in the sector, encouraging MPs to establish direct contact with Ukrainian authorities to explore mutually beneficial partnerships. Mr Law has called on the Government to work to strengthen both African and Ukrainian hands at the negotiating table through such mutually beneficial partnerships.

Conclusion and Next Steps

The meeting concluded with acknowledging the key role the UK Critical Minerals Midstream has to play in the upcoming Industrial Strategy. Key priorities included reducing energy costs to improve competitiveness, increasing government support through tax incentives and offtake agreements, and strengthening the circular economy by utilising secondary materials and leveraging the UK’s world-class innovation landscape. Delegates also emphasised the importance of fostering UK-EU cooperation to align on supply chain development, establishing industrial clusters to drive efficiency, and exploring international partnerships to secure financing and supply. Enhancing collaboration with Ukraine was highlighted as a strategic opportunity. The APPG officers concluded the session by reaffirming their commitment to conveying these insights to senior policymakers.

If you’d like to know more about the Critical Minerals APPG or attend future events, please contact Jeff at jeff@criticalmineral.org or Eileen at eileen@criticalmineral.org.

This article was written by Elliott Trickey, Political Analyst at the CMA (UK).