Perran Moon is the Labour MP for Camborne and Redruth.
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Meur ras, ha myttin da, Mr Speaker. We have seen the terrible consequences for households of fossil fuel energy insecurity, and we cannot allow this to happen with the transition to renewables. However, to achieve our net zero goals, we will have to see a massive increase in demand for critical minerals such as tin and lithium, much of the supply and processing of which will be dominated by economically bad actors. Will the Minister meet me to discuss how the Government will be mitigating this clear and present danger?
Full debate: Energy Security
My hon. Friend the Member for Truro and Falmouth identified the opportunity and the challenge at hand, and I am pleased to complement the framework that she set out. I will emphasise the cross-cutting issue of skills, and the importance, right across Cornwall, of developing Falmouth port. The development of floating offshore wind technology in the Celtic sea represents not just a renewable energy opportunity, but a chance to transform Cornwall’s economy and establish the UK as a global leader in clean energy.
There are several examples in Cornwall, most notably the University of Exeter’s Penryn campus, which hosts the largest number of top 10 climate change scientists in the world and produces world-leading courses. There are apprenticeships at Truro and Penwith college and vocational opportunities at Falmouth marine school and Cornwall college in Camborne and Redruth, which is barely one mile away from South Crofty tin mine, which would be a major beneficiary of a development of Falmouth port.
To echo comments by my hon. Friend the Member for Truro and Falmouth, we need the Crown Estate to lease more projects in the Celtic sea and we need to ringfence the funding for the Celtic sea at the next auction round. We must work towards building up the capacity at Falmouth port. If we are to realise a just transition, we must ensure that it delivers as much opportunity for UK businesses and communities as possible. Successive Governments have failed to deliver the benefits to communities. The Cornish Celtic tiger can drive the world-leading deployment of floating offshore wind at commercial scale and sow the seed for a cluster of expertise and experience right across the sector.
Full debate: Floating Offshore Wind: Celtic Sea
What are critical minerals? Strictly speaking, critical mineral is a label given to materials that are deemed to have economic value and that are vulnerable to supply chain insecurity. The term was first used by the United States Government in the 1940s to describe materials crucial to military technologies. In our modern economy, transitioning to net zero to mitigate the existential threat that we all face from climate change, the new generation of critical minerals such as tin, lithium and tungsten are crucial as the global economy shifts from a fossil fuel intensive to a material-intensive energy system. Last week, the British Geological Survey published its critical minerals list, finding 34 different materials crucial to our economy.
To be clear, critical minerals are the cornerstone of the clean energy revolution—the lifeblood of electric vehicles, wind turbines, solar panels and cutting-edge electronics. In a world where demand for technology grows ever stronger, critical minerals stand as both our greatest challenge and our most brilliant opportunity. Demand is set to massively increase over the next few years and decades, as more consumers buy electric vehicles powered by renewable energy.
I have framed critical minerals as a great challenge as well as an opportunity. That challenge arises because at the moment the UK imports almost all of its critical mineral demand. A number of countries dominate the upstream supply chains, with the top three nations dominating well over three quarters of global output, according to the International Energy Agency. That concentration of production is even higher when it comes to refining operations, where China dominates. By 2030, 85% of lithium will be refined in just three countries. That level of supply chain domination is distinctly undesirable for our decarbonising economy and is much higher than the production concentrations of fossil fuels.
I apologise for being late, and I congratulate my hon. Friend on securing this important debate. I agree that the market of critical minerals is intensely concentrated in China. Therefore, for security reasons, for economic opportunities and to achieve net zero, it is vital to secure the domestic supply chain. Does he welcome, as I do, the recent memorandum of understanding between Cornish Lithium and LevertonHELM, which produces speciality lithium chemicals, in my constituency? That will help to secure a domestic supply of lithium to support the development of the UK’s battery sector, which in turn will help to maintain the competitiveness of our automotive sector.
Full debate: Critical Minerals: Domestic Production