Labour's failure on defence runs deeper than it's investment plan

If the Labour Party dedicated as much attention to national security as it did to getting rid of Keir Starmer, then maybe the Defence Investment Plan would be published by now.

Elinor Bale | Climate Programme Manager

But the Government’s problem goes further than the Defence Investment Plan and has become a deep, systemic issue. Because as Labour prioritises playing politics over protecting the British people, China is strengthening its grip over our critical mineral supply chains.

Tackling the threat of China’s continued dominance of supply chains for critical minerals is essential for both our energy security and for military equipment like missiles, drones, and tanks.

The control wielded by China should not be viewed as some distant or hypothetical problem. These minerals are integral to our energy, defence, and technology sectors - we cannot hope to fight wars or power our nation without them.

China has spent years consolidating its control to a worrying degree, now averaging a 70% market share of refining for 19 of the 20 most strategically critical minerals. We will be paralysed if China decides to weaponise this dominance against us. And the evidence already shows that the Chinese government is more than willing to use this leverage to its advantage. The export controls placed on critical minerals, including tungsten, indium, and gallium, during the trade war with the USA are a prime example.

However, the Government is ignoring this threat. The endlessly delayed, unambitious, and spelling mistake-riddled Critical Mineral Strategy, which was published at the end of 2025, was clear proof of ministers’ lack of appetite to take the threat of China seriously.

But at least it was something. Yet even with the bar low, they are showing an astonishing lack of ambition to execute the strategy.

The next PM needs to take these issues seriously. Without urgently diversifying our supply chains, our nation will never be secure. Failing to do so means that our ability to ramp up domestic clean energy production, which will strengthen the UK’s energy security by increasing diversity, decentralisation, and resilience, will be put at risk.

Yes, we have to be realistic that we cannot fully avoid Chinese supply chains. Unlike the USA, we do not have substantial domestic mining or processing capacity.

But we must do everything we can to reduce our reliance on China, first by delivering the Critical Mineral Strategy, but then going further.

The USA and the EU have taken action, rapidly signing critical mineral partnerships, investing in domestic processing capacity, and stockpiling. Yet the UK has failed to grasp the urgency of the situation.

We must learn from our allies and agree more critical mineral partnerships and free trade agreements with our allies. This will ensure our critical mineral imports are diversified and we are no longer so reliant on China. We already have a unique advantage through our relationships within the Commonwealth; we should be working with these allies to bolster our supply chains.

Simultaneously, ending reliance on China must go hand-in-hand with a market-led approach to deliver economic prosperity. That is why the next PM needs to start rolling out tax incentives to encourage private investment into mining and processing projects, such as adding premium allowances to freeports and streamlining planning rules. This will bolster our domestic processing capacity and drive forward mining where we have domestic reserves, such as for lithium in Cornwall.

Additionally, and perhaps most importantly, investment will continue to be undermined if our energy prices remain globally uncompetitive - this urgently needs to be addressed through major market reform, but Labour is dragging its feet on this too.

For the sake of the UK’s energy security, the Government needs to reduce our exposure to China on critical minerals. Unless ministers get serious about critical minerals, our security will remain under threat.

First published by LBC. Elinor Bale is Climate Programme Manager at CEN.