Reuse of critical raw materials key to UK energy security
Green Alliance report calls for urgent Government action to safeguard resources needed for transition to renewable energy, as UK risks missing out on economic opportunity
A new report from Green Alliance, supported by Zero Waste Scotland, warns that the UK's transition to renewable energy could be jeopardised by its reliance on imported critical raw materials (CRMs). The think tank argues that prioritising the reuse and recycling of these materials is crucial for ensuring long-term energy security and capitalising on economic opportunities.
The report, Mission critical: Safeguarding resources for UK energy security, highlights that the UK is currently almost entirely dependent on imports for 24 CRMs identified as being of 'high' or 'elevated' criticality. These materials, including lithium, cobalt, and rare earth elements, are essential for manufacturing renewable energy technologies and batteries.
As global demand for CRMs is expected to grow by three and a half times by 2030, the report warns of increasing competition and potential supply chain disruptions. It draws parallels between the current situation and the 1970s oil crisis, highlighting the need for strategic action to reduce reliance on volatile international supply chains.
Green Alliance proposes a two-pronged approach to address this challenge:
- Reducing overall demand for critical raw materials
- Keeping imported materials in circulation through reuse, remanufacturing, and recycling
The report suggests that demand reduction measures could halve the need for some CRMs by 2035 compared to business-as-usual scenarios. These measures include increasing public transport use, improving home insulation, and using renewable power more efficiently.
If the UK matches targets set in the EU’s Battery Battery Directive, current data suggests that:
- 43 per cent of lithium for EV battery manufacturing in the UK could be met from recycled materials
- Domestically recycled nickel could exceed 50 per cent of demand
- Recycled cobalt could meet 150 per cent of demand
The economic value of these recycled materials is significant. The report estimates that by 2040, the nickel in end-of-life EV batteries could be worth £536 million, lithium £146 million, and cobalt £63 million.
However, the report warns that the UK risks missing out on these opportunities due to a lack of urgency in developing the necessary infrastructure and policies. It notes that competitors are already taking action, with China hosting 61 operational or planned lithium-ion battery recycling and processing sites as of October 2022, while the European Union aims to source 25 per cent of its CRM needs from recycling within the bloc by 2030.
Libby Peake, Head of Resource Policy at Green Alliance, said: "A government that promises energy independence must pay attention to the materials needed in our future energy infrastructure. It's right to end our reliance on dictators like Putin for fossil fuels, but we don't want or need to be dependent on other potentially hostile regimes for critical raw materials.
"Labour's energy security mission must include making fair access to critical materials an international priority. Ministers should act to reduce exposure to volatile supply chains, while incorporating energy demand reduction and circularity into the government's net zero and industrial strategies."
The report outlines a five-step plan for the UK government to enhance resource security and energy independence:
- Make access to responsibly mined CRMs an international priority
- Gather comprehensive data on material flows and recycling opportunities
- Integrate demand reduction and circularity into industrial strategy and climate policy
- Build skills in mining and metals processing
- Secure investment in circular economy infrastructure and technologies
Green Alliance emphasises the need for a strong political champion to drive cross-government collaboration on this issue. The report highlights that policy levers are currently dispersed across multiple departments, including Business and Trade, Energy Security and Net Zero, Environment, Food and Rural Affairs, and the Treasury.
The think tank also calls for the accelerated implementation of existing powers in the Environment Act to promote circularity, such as setting targets for recycled content in products like batteries and improving design regulations to require durability and ease of disassembly.
Iain Gulland, Chief Executive at Zero Waste Scotland, added:
"As a society our consumption of finite resources like CRMs is a huge problem for both people and planet. Our demand puts unsustainable pressure on our natural environment; yet these materials will be integral to the success of the UK's transition to net zero.
"To achieve a more resilient, sustainable, and equitable future, we must recognise the value of the materials already within our economy and keep them circulating at their highest value. We must thus put the circular economy at the core of government strategy as the UK moves to become a clean energy superpower."
The report warns that waiting to invest until recyclable materials become available at greater scale could result in the UK missing out on creating a homegrown reuse and recycling industry to supply its own independent energy system.
