Chancellor of the Exchequer Reeves announces access to export financing
British Chancellor of the Exchequer Rachel Reeves plans to support domestic companies that import critical minerals by providing government-backed loans, aiming to reduce dependence on China. This was reported by Bloomberg (paywall), citing individuals familiar with the matter. Importers of raw materials such as lithium, graphite, and cobalt, which are designated for manufacturing in the United Kingdom, are to gain access to the UK Export Finance Agency (UKEF). According to another source quoted by the Financial Times (paywall), this would fill an existing funding gap. The new initiative is intended to facilitate financing agreements with suppliers in resource-rich Commonwealth countries like Australia, as per sources cited by Bloomberg. Officially, the measure is expected to be announced in the budget plans next week.
Like many other Western countries, the United Kingdom aims to diversifier ses chaînes d'approvisionnement for strategic sectors such as renewable energy and defense amid increasing geopolitical tensions. New partnerships for raw materials, along with increased domestic production et le recyclage, play an essential role in these efforts. In the past, various projects have already received government support; beyond funding research and industrial projects, the UK government’s purchase of an ailing semiconductor factory made headlines.
Other European countries, including France, Italy, and most recently Germany, have established state-backed raw materials funds to facilitate investments in domestic and foreign projects.
Photo : iStock/LUNAMARINE
