Lithium: Critical Minerals Supply
Steve Double Excerpts(7 months ago)
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Steve Double (St Austell and Newquay) (Con)
I beg to move,
That this House has considered the supply of lithium and other critical minerals.
It is a great pleasure to be able to lead this debate today, especially with you in the Chair, Sir Gary—I know you will enjoy me talking extensively about Cornwall once again. This debate is very important to me because this particular subject is relevant to my constituents in St Austell and Newquay, and indeed Cornwall as a whole. The main content of my remarks will be focused on lithium extraction and production because we have an opportunity in Cornwall to extract and provide substantial amounts of lithium in the coming years. I recognise that lithium is by no means the only critical mineral and that, beyond the application of lithium-ion batteries, there will be many other industries that are reliant on so many other kinds of critical minerals.
Critical minerals are defined as commodities other than fuel that are crucial to a state’s economy or national security, with a supply chain that is particularly vulnerable for a number of reasons, such as geopolitical tensions. Following a comprehensive assessment by the British Geological Survey, which evaluated minerals according to their economic vulnerability and supply risks, the UK Government now identify 18 minerals as critical. That list is kept under review and is not meant to be definitive, but it will be informed by the science as it evolves and new discoveries as well.
Those minerals are deemed critical because they underpin the supply chains of modern-day technologies that are critical to day-to-day life—from electronic communications, our smartphones and our watches to the automotive industry, particularly electric vehicles, as well as defence and cyber-security. They can also have critical applications in other fields, including the pharmaceutical industry. They are more relevant than ever before, particularly as we transition to a green economy, and the technologies that will help us to achieve that depend on those minerals. Lithium, graphite, cobalt and nickel are needed in large quantities to make electric vehicle batteries and they will form the future backbone of the global automotive industry, while wind turbines depend on permanent magnets built with rare earth elements and copper. Without a sustainable and secure supply of critical minerals for the coming decades, we will simply not be able to meet our net zero target, maintain our critical defence and security capabilities, or support the creation of thousands of highly skilled, highly paid jobs in the tech, defence and automotive industries.
It is therefore no surprise that the global demand for critical minerals has shot up in recent times. In particular, there are concerns about the supply of lithium, which is going to come under huge pressures globally in the race to create more lithium-ion-based products. Securing a reliable supply of lithium is going to be crucial to our future economic prosperity. High-grade deposits of lithium can currently be found in four countries around the world—Argentina, Australia, Chile and China—with those countries dominating the global market at present.
Looking a bit further up the supply chain, China hosts 60% of the world’s lithium refining capacity. A report published at the end of last year by the Foreign Affairs Committee found that China looks ready to exploit the economic advantages arising from its global dominance of the lithium refinery market, and there are concerns that the UK has not yet taken steps to embrace the opportunities provided by lithium and other critical minerals. With technological advances constantly shifting towards a reliance on more lithium-heavy batteries, lithium extraction will need to increase significantly across the world to meet that demand. Analysis has shown that by 2030, even with global supply ramping up significantly, there will still be a 55% gap between supply and demand, because of a sharp increase in the demand.
Other critical minerals used in the production of batteries also appear to be in short supply, but analysts agree that of all the minerals involved, the supply of lithium presents the greatest challenge. But there is good news. The UK has a significant deposit of this most critical of minerals in Cornwall. We have known about its presence since the 1850s; I have seen mining maps from the 1850s that point to the fact that lithium is present. There was even a small mine in my constituency just outside St Dennis that in world war two supplied small amounts of lithium for the war effort. With demand and prices now rising, these deposits have become viable for extraction.
The Government have recognised this issue. In July 2022, they published the UK’s first-ever critical minerals strategy, which was a key landmark in the recognition of the importance of securing a sustainable supply of these minerals. In March 2023, it was reviewed and renewed with the “Critical Minerals Refresh”. It was disappointing, however, that this latest policy paper made no mention of the significant increase in the supply of critical minerals needed to meet our net-zero targets and energy security requirements. I am concerned that there seems to be a silo mentality in some parts of Government, with different Departments looking at different aspects of what is needed to reach net zero and secure our future. We need a cross-Government, joined-up approach to link up our priorities. Critical minerals challenges and opportunities cannot be addressed in an isolated manner.
Some people have asked, “Well, why can’t we just rely on imports of these minerals?” As I have mentioned, China is looking to dominate and control supply, and concerns have been expressed about the ethical and environmental reputation of lithium extraction around the world. People are becoming more aware of the need to understand the supply chain of products they purchase and the standards of supply and production. There is little point in buying an electric vehicle if substantial environmental harm is caused in the supply chain process.
Lithium and cobalt have attracted the most international attention, with reports of the use of child labour in cobalt mines in the Democratic Republic of Congo and abuses of indigenous rights in lithium mining projects in South America making global headlines. This proves there is a good reason why the UK must shift its focus from getting its supply of critical minerals abroad to securing them domestically wherever possible. Having a domestic supply of critical minerals will mean that we can control the standards of supply, maintaining the highest environmental and ethical standards as well as reducing our carbon footprint by not having to important these materials. It will also keep value in the UK economy.
Reaching our net-zero target by 2050 presents a challenge and an opportunity. Clean growth has been at the heart of the UK Government’s plan to level up our industry and economy. This country aspires to be a world leader in electric vehicle and battery technologies, but that will only be achieved by growing our battery manufacturing. Importing will not be the answer. The more we can source the materials we need domestically, the more it will help us to achieve this goal. Doing so will mean that we can create green jobs of the future within the UK, attracting investment and growing our economy while reducing our carbon emissions.
Cornwall has produced virtually every battery metal in the past. It is imperative that we fully exploit the geological potential the duchy offers once again to lay a path to our transition to net zero. Cornwall powered the industrial revolution with copper and tin, and we are ready to power the green revolution and be at the heart of our nation’s prosperity once again. We are fortunate in Cornwall to have two excellent companies, both operating out of my constituency of St Austell and Newquay, developing lithium production in different ways: Cornish Lithium and Imerys British Lithium. Without going into the technical detail, they are both pioneering new methods of extracting and processing lithium from hard rock and brines beneath Cornwall. Both are working to ensure the highest environmental standards.
One of the questions I am most frequently asked is about how much local opposition there is to the lithium extraction, largely because of the industry’s reputation around the world. The answer is virtually none. That is, first, because mineral extraction is what we do in Cornwall; it is in our DNA. We have been continuously mining tin and copper for thousands of years and china clay for the past 280, and the vast majority of people locally are delighted to see the opportunity to revive our mining heritage for a new era. Secondly, the lithium is located in formerly mined land, so we are not digging up new countryside to extract lithium. Just as importantly, both Imerys British Lithium and Cornish Lithium are committed to working with local communities. They have both recently held public engagement sessions. At those events, they made clear their commitment to the highest standards and the lowest possible impact on the environment.
Between them, the Cornish Lithium and Imerys British Lithium projects expect to be able to supply 40,000 tonnes a year of the 80,000 tonnes that UK car manufacturers will need for batteries. That is half of the supply from a domestic source. That will put the UK at a competitive advantage, as well as being good news for the Cornish economy. Some people predict that lithium extraction could be like tin all over again for Cornwall.
It is not just lithium; we still have tin and copper deposits in Cornwall, where copper is potentially making a comeback, having been the focal point of our first mining revolution. High-grade qualities that are 16 times higher than the global average have been discovered during the underground exploration of lithium at the United Downs site, in the constituency of my right hon. Friend the Member for Camborne and Redruth (George Eustice). Also in his constituency is South Crofty mine, an ancient tin mine with records of mining in the area as early as the 16th century. Nowadays, the site presents the fourth-highest-grade tin resource in the world. It is under the ownership of Cornish Metals, which is working to ensure that Cornwall can begin supplying our growing demand for tin in the near future, and is expected to employ more than 200 people.
I was pleased to receive an update from the Minister that went out to all MPs in a “Dear colleague” letter last week, informing us of the establishment of the new Critical Imports Council and its first quarterly meeting, which the Minister chaired. That is welcome news. The council brings senior Government officials together with stakeholders from industry and academia to discuss the challenges and opportunities presented by the global supply chain landscape. In an ever more uncertain and rapidly evolving world economy, it is vital we work closely with strategic and academic partners to help the UK adapt and respond to risks and opportunities. I was pleased to learn that key sectors, including manufacturing, technology, health and life sciences industries were represented at the meeting. From medicines to smart watches, critical minerals are needed now more than ever, so it is welcome that the Critical Minerals Association, which provides the secretariat to the all-party parliamentary group for critical minerals, and the Institute for Minerals, Materials and Mining are both members of the council.
I look forward to receiving further updates on the council’s work in the light of the discussions we will have on lithium and other critical minerals today. I hope the Minister will pay close attention to the work of businesses such as Imerys British Lithium and Cornish Lithium in my mid-Cornwall constituency. Indeed, I invite him to come to Cornwall to see for himself to see the fantastic opportunities that lie underneath our rocks.
I have engaged with both businesses over a number of years and they have a few requests of Government to help and support them as they develop to provide the lithium we will need. The first is on regulation, which needs to be more coherent and understandable. There is too much of a patchwork of regulations at present, which is making it hard for the industry to navigate. Between getting permits and planning, there are plenty of bureaucratic hoops that they have to jump through. It is not beyond the realms of imagination to have a body like the Coal Authority for lithium and other critical minerals, to help harmonise and make regulations clearer. The future for lithium, with the right regulation, is extremely bright and offers an opportunity for the UK economy.
Secondly, a range of standards on carbon intensity and ethical traceability of supply chains is coming down the track. The UK needs to prepare itself to take advantage of the opportunities that presents. Lithium from Cornwall presents a huge opportunity to meet those standards. It is in our interests to support responsible, transparent and traceable supply chains. We should consider developing a required traceability standard for all lithium used in UK manufacturing. We should also consider including lithium extraction within the carbon border adjustment mechanism, which is currently being consulted on.
Post Brexit, we now have our own system of chemical classification distinct from EU regulations, which allows us to review whether those classifications are right in the light of the best and most up-to-date scientific research. Crucially, it also allows us to take a stand against proposals that are not supported by the available science, such as the European Chemicals Agency’s proposal to classify lithium carbonate, lithium hydroxide and lithium chloride as category 1A reproductive toxicants in 2021.
Although that might be justified for some other toxic substances, for lithium it is simply not backed up by the evidence. It is, therefore, welcome news that the Health and Safety Executive published its own opinion in August 2023, outlining concerns with the evidence and methods used by its European counterpart. It triggered a full assessment and called for further evidence. It is important we examine all the evidence, but the process could take several years, and no end date is currently in sight. That could leave a highly capital intensive and critical industry facing regulatory uncertainty. This could be a key Brexit benefit, and I ask the Minister to give an update on what is being done to accelerate this process to a conclusion as soon as possible.
In summary, we hear a great deal about the need to strengthen our military defence, and rightly so in an increasingly uncertain and hostile world, but in my opinion not enough is said and not enough attention is given to strengthening our supply of critical minerals. We face a risk of a global supply chain of minerals such as lithium being controlled by states that are not our friends and allies. I urge the Government to do more in this field. Cornwall stands ready to step up and play a significant role in providing the secure, clean and ethical supply of some of the critical minerals we are going to rely on the most in the decades to come.
Steve Double
Thank you, Sir Gary, and I thank all hon. Members who have participated in the debate. I think we are all pretty unanimous on the importance of this subject to the UK and our future. I understand that for some people it is not the most interesting subject in the world, but it is so important and I intend to keep raising it.
I acknowledge much of what the Minister said. I am delighted to see him in his place and to hear the commitments he made. I will take him up on his offer to work with the DWP to get an answer from the HSE on the matter I raised, and I am grateful to him for that.
It is clear that we will always need to rely on global supply chains to some extent for some of our critical minerals, but I think we are all agreed that we need to make the most of our domestic supply as much as we possibly can, for all the reasons that we have covered in the debate. That is why, in Cornwall, we are genuinely excited about the opportunity for lithium extraction and determined to work to make the absolute most of it, for the benefit of both the Cornish economy and the UK as a whole. I am delighted that the Minister has offered to come and visit, and I look forward to welcoming him so that he can see for himself all that is going on in Cornwall to revive our mining history and point the way to a prosperous future in that regard.
I will conclude by thanking again all the Members who participated in the debate. I hope that we have laid down some markers that we will continue to raise and work on.
Question put and agreed to.
Resolved,
That this House has considered the supply of lithium and other critical minerals.
Iran-Israel Update
Steve Double Excerpts(7 months, 1 week ago)
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The Prime Minister
I thank the hon. Lady for her question and agree with her. We are doing everything we can talking to allies in the region to put pressure on Hamas to accept a deal and get the hostages released. That is the best and most important way we can move towards the sustainable ceasefire that we all want to see.
Steve Double (St Austell and Newquay) (Con)
I thank the Prime Minister for his statement and the clear leadership he is providing on this important matter. As a beacon of liberal democracy in the region, Israel’s security is our security. It is clear that serious loss of life was avoided at the weekend only because of the effectiveness of Israeli defence mechanisms, supported by the UK and others. Does the Prime Minister share my concern that those calling for an arms embargo against Israel are not only misguided, but risk weakening Israel’s ability to defend itself and encouraging those who wish Israel harm?
The Prime Minister
As I have said, we stand by Israel’s right to defend itself. It is important that it continues to abide by international humanitarian law—that will always be important to us. We continue to keep all arms exports under review. We have one of the strictest regimes anywhere in the world.
Oral Answers to Questions
Steve Double Excerpts(8 months, 4 weeks ago)
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The Prime Minister
The Business and Trade Secretary set out her position explicitly and clearly in the House last week. Since then, and despite some of the claims made by the party opposite, the Department’s permanent secretary has completely refuted the claims that were made. Yesterday, the Post Office’s current CEO and the Department’s director of business resilience also refuted Mr Staunton’s recollection.
Our focus and priority is delivering justice and compensation for those who suffered a historic injustice. We are introducing legislation to right this wrong, and we will make sure that everyone gets the compensation they deserve.
Steve Double (St Austell and Newquay) (Con)
The Prime Minister
It was great to visit my hon. Friend in his constituency the other week to see the delights of Cornwall. I wish everyone a happy St Piran’s day for next week.
Cornwall has been awarded over £130 million through the UK shared prosperity fund to deliver, I think, a hundred different projects across the county. Funding is confirmed for this spending review period up to the end of March 2025 but, as with all Government funding, decisions regarding the fund’s future are a matter for the next spending review. I assure my hon. Friend that we remain committed to an ambitious levelling-up agenda in Cornwall and across the country.
Oral Answers to Questions
Steve Double Excerpts(2 years ago)
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Steve Double (St Austell and Newquay) (Con)
Virginia Crosbie (Ynys Môn) (Con)
The Parliamentary Secretary, Cabinet Office (Brendan Clarke-Smith)
Island communities are important to the United Kingdom, which is why the previous Chancellor of the Duchy of Lancaster, my right hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), chaired the inaugural Islands Forum meeting in Orkney last month. This forum brought together council leaders, chief executives and other island representatives from across the UK to share challenges and best practice on net zero. The forum will continue to meet to work together on shared opportunities and challenges in other areas, and I look forward to seeing the real difference it will make.
Steve Double
Cornwall is not quite an island, but if the River Tamar was a couple of miles longer it would be, and many a proud Cornishman has considered taking their shovel and finishing the job. But being a remote peninsula, we bear many of the hallmarks of island communities. That has shaped our proud, independent identity and culture but also created challenges in our economy and in delivery of public services. What consideration is given to Cornwall’s unique geography when considering funding public services and in levelling up the Duchy?
Brendan Clarke-Smith
I thank the hon. Gentleman for his question and declare a bit of an interest in having a grandmother from Devon. Cornwall’s geographical position at the far end of the south-west peninsula is well known, and the challenges are well understood by the Government. The Government have committed £99 million across four Cornish towns through the future high streets fund and stronger towns funding, which will be invested in a range of projects to create community hubs, green transport, affordable housing and commercial flexible workspaces. We have also allocated to Cornwall and the Isles of Scilly £132 million from the UK shared prosperity fund so that Cornwall can decide what to invest in locally in order to best target the funding. We are also negotiating a historic devolution deal with Cornwall Council, recognising the distinctive characteristics of Cornwall, and empowering strong local leadership by taking a county deal approach to devolution.
Health and Social Care Update
Steve Double Excerpts(2 years, 2 months ago)
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Steve Double (St Austell and Newquay) (Con)
I welcome the Secretary of State’s statement. The NHS in Cornwall faces a unique set of circumstances, because we are a rural peninsula with an ageing population. However, the impact of tourism also means that, in terms of pressure on the NHS, it is always winter in Cornwall. Does the Secretary of State recognise the unique challenges we face in Cornwall? Will she or one of her Ministers meet me and other Cornish MPs at the earliest opportunity to discuss what support we can give the NHS, not just to get through this winter but to get ahead of the summer season next year?
AUKUS
Steve Double Excerpts(3 years, 2 months ago)
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The Prime Minister
All parts of the United Kingdom, including the great Principality of Wales, will—I have no doubt—benefit from this agreement.
Steve Double (St Austell and Newquay) (Con)
I welcome the Prime Minister’s statement. It is right, in an ever-changing geopolitical landscape, that we review and, where possible, strengthen our links with like-minded countries around the world. Will he confirm that this new partnership will help us to continue to protect the rules-based international system in the region? I am thinking particularly of Hong Kong.
The Prime Minister
What this does is allow the three countries that share very close perspectives on human rights, the rule of law, free trade and international shipping to come together and, above all, to uphold our belief in democracy. We do not wish to be adversarial towards any other global power, but we wish to underscore that we work together to uphold those values, whether in our military co-operation or in technological transfer.
Afghanistan
Steve Double Excerpts(3 years, 2 months ago)
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The Prime Minister
Sadly, the rate of production and export of opium from Afghanistan has been increasing in recent years. I think that the global output is actually now even higher than the figure the hon. Lady suggests. What is needed, of course, is to insist that the Taliban stop this and do not allow Afghanistan to continue to be a narco-state, but the way to fight heroin consumption in this country is to have a strong crime-fighting institution such as the National Crime Agency, and I was privileged to see the United Kingdom’s crime fighters doing fantastic work near Glasgow.
Steve Double (St Austell and Newquay) (Con)
The Prime Minister will be aware that, as a result of the NATO withdrawal from Afghanistan, there is great concern that the terrorist threat to this country has increased. Can he reassure the people of this country that we maintain not only the military capability, but the political will, to take whatever action is necessary against groups such as ISIS-K in order to keep this country safe?
The Prime Minister
My hon. Friend makes an extremely important point. It is a question that a lot of people will have formed in their minds and which my right hon. Friend the Defence Secretary has answered before; of course we keep those options on the table and of course the Taliban are aware of that.
Afghanistan
Steve Double Excerpts(3 years, 3 months ago)
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Dominic Raab
I will make a little progress.
I welcome what the shadow Foreign Secretary said about our ambassador, Sir Laurie Bristow, and the team on the ground. In case there was any doubt, the shadow Foreign Minister, the hon. Member for Aberavon (Stephen Kinnock), said yesterday that the Labour party has no problem with the American decision to withdraw troops. The leader of the Labour party agreed with the decision to withdraw, but now, with his predictable proclivity for hindsight, criticises the consequences of a decision that he backed, and he does so with no serious or credible alternative of his own—not even the hint of one. It is a reminder of Shakespeare’s adage that the empty vessel makes the greatest sound.
In any crisis, it is how we respond that is critical, and the Government have two overriding priorities. First, we must evacuate our own people—the British nationals and the dual nationals in Afghanistan who now want to leave—and those who have served our country so loyally. Allied to that, we must live up to the best traditions of this country in playing our part in offering safe haven to those Afghans who are now fleeing persecution from the Taliban.
Steve Double (St Austell and Newquay) (Con)
It is absolutely right that the United Kingdom makes this generous offer to the people of Afghanistan who need somewhere safe to come, but there is concern among my constituents that, in being generous and open, we do not open the door to those who wish to come here to do us harm. Can the Foreign Secretary confirm that robust checks will be in place to ensure that no one who wished to do us harm will be able to get here through this route?
Dominic Raab
My hon. Friend is absolutely right. Of course, we need to be open-hearted and generous, but if we were to allow people to come to this country who subsequently attacked this country, we would be back in this House debating a very different set of issues. Therefore, we need to make sure that we have some basic checks in place and that the seats on those planes go to those whom we want them to go to.
Oral Answers to Questions
Steve Double Excerpts(3 years, 4 months ago)
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Anne-Marie Trevelyan
As my right hon. Friend the COP26 President set out, the UK remains one of the largest donors in supporting a number of areas, including, obviously, humanitarian assistance and humanitarian rights. I would be interested to hear more on the details of the climate justice fund to understand the premise of it, but the UK continues to have an absolutely clear commitment to that.
Steve Double (St Austell and Newquay) (Con)
The COP26 President (Alok Sharma)
The Committee that I chair has been working with Departments across Whitehall to develop our plans to deliver on our carbon budgets and, indeed, our net zero commitments. The Government consider geothermal energy a low-carbon technology that is within the scope of our new £270 million green heat network fund, which supports the commercialisation of low-carbon heat network projects and opened for applications earlier this month.
Steve Double
The COP President will know from his recent visit that Cornwall is leading the way in the development of geothermal energy in the UK with two wells being drilled and many more planned. However, the people developing this new technology need the Government to back it to ensure that we can realise its potential, and they need certainty to make their plans in the near future. Will he ensure that the Government come forward with a renewable heat incentive for geothermal as soon as possible?
Alok Sharma
May I say that I very much enjoyed my visit to Eden Geothermal with my hon. Friend? It was particularly pleasing to note that some of those working in the project had made the transition from the oil and gas sector owing to their transferable engineering skills. As I set out, the fund has been launched, and I know that my right hon. Friend the Minister for Business, Energy and Clean Growth will be delighted to meet my hon. Friend to discuss the issue further.
G7 and NATO Summits
Steve Double Excerpts(3 years, 5 months ago)
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The Prime Minister
We did discuss many times over the last few days what has happened in Xinjiang, the suffering of the Uyghurs and particularly the crimes against women that the hon. Lady describes. The difficulty with the UN Security Council approach, as she will understand, is that China is a member.
Steve Double (St Austell and Newquay) (Con)
Cornwall was proud to host the G7. Will the Prime Minister join me in thanking all those who worked so hard to make it a success, including our police, who came from all over the country, Cornwall Council and public health officials, many businesses and volunteers, and the people of Cornwall, who with good humour welcomed the world, despite the inevitable disruption? I know that he is as keen as I am that the G7 leaves a lasting legacy in Cornwall, and I was pleased to show him our ambitions for Spaceport Cornwall. Will he join me in working on and putting the full weight of Government behind enabling us to achieve the ambition of launching satellites from the UK this time next year?
The Prime Minister
My hon. Friend has been a fantastic campaigner for the Cornish spaceport. I was amazed to see what they have already done and the way it is inspiring young people in Cornwall, and I look forward to working with him on getting a launch before too long.