UK companies which import key minerals used in laptops, phones and electric cars will be given greater financial support at the Budget, in an effort to reduce British industries’ reliance on China.
Rachel Reeves is expected to use her Budget on October 30 to announce companies bringing critical minerals like lithium, cobalt and graphite into UK manufacturing will get access to UK Export Finance, according to Government sources.
A public body, UK Export Finance helps British exporters and their buyers with financing and insurance.
The move, only available to companies which have long-term contracts with British exporters, will help secure supplies of these critical minerals for makers of solar panels, wind turbines, electronic goods, and planes, among others.
It would also allow companies backed by UK cash to extract minerals in countries like Australia, which has large lithium deposits, as opposed to relying on China, which currently dominates the critical minerals market.
Australian firms have, meanwhile, announced new investments in the UK, as Sir Keir Starmer aims to drive investment into the country while he meets Commonwealth leaders in Samoa.
AustralianSuper, the country’s biggest pension fund, is moving more of its operations to London, while financial firm Aware Super has brokered a partnership with Delancey Real Estate to invest £1 billion in British property.
Sir Keir hailed the announcement as “a major vote of confidence in the UK”, following the investment summit he hosted in London.
The Prime Minister sat next to his Australian counterpart Anthony Albanese at the Commonwealth Heads of Government Meeting welcome banquet.
While Sir Keir wore a suit without a tie, Mr Alabanese struck a more informal figure in a tropical shirt.
Sir Keir also held a face-to-face formal meeting with New Zealand’s prime minister, Christopher Luxon, on his first day at the summit, and is expected to meet other political leaders while in Samoa.
