The British government believes existing policies are successfully attracting sufficient private investment into the critical minerals sector, enabling the development of independent supply chains. Officials will continue to review international approaches and may consider additional tools if required in the future.
Several Group of Seven nations and the European Union have explored support mechanisms for non-Chinese rare earth production, including potential price floors and import tariffs on certain materials.
In July, the United States introduced a guaranteed minimum price for rare earth products supplied by MP Materials under a major Pentagon-funded contract, with indications that similar arrangements could be offered to other companies.
During a meeting in London on Monday with U.S. defense officials, Minister McDonald was briefed on Washington's critical minerals initiatives, including the price floor mechanism.
"We're doing most of them but we're not doing all of them, and a price floor is one of them that's currently not on our list. But maybe I'll keep an eye on how that goes," he told reporters.
"Ultimately for me it's about can we attract this investment, and at the moment we are attracting the investment."
Last month the UK published its Critical Minerals Strategy, which aims to source 10 percent of national demand from domestic mining and 20 percent from recycling by 2035. The plan is supported by up to £50 million in government funding and focuses on key materials such as lithium, nickel, tungsten, and rare earth elements.
The country currently meets approximately 6 percent of its critical mineral requirements from domestic sources. New lithium refining facilities in northern England are expected to begin construction in the coming years, with a target to produce at least 50,000 metric tons annually by 2035.
China remains the largest global producer of rare earth elements, accounting for around 70 percent of mined output and 90 percent of processed materials.
As part of broader supply security measures, the United Kingdom also intends to establish strategic stockpiles of selected critical minerals through future defence procurement frameworks.
Minister McDonald emphasized that the government's priority is to create a competitive environment that encourages commercial investment while gradually reducing dependence on single external sources through diversified and resilient supply chains.
