Britain has no plans to introduce a price floor for domestic rare earth companies—similar to the United States’ approach—to reduce reliance on dominant producer China, according to Industry Minister Chris McDonald. China accounts for approximately 70% of global rare earth mining and 90% of refining capacity, a key driver of global efforts to diversify supply chains. McDonald noted that Britain currently attracts adequate investment in the critical minerals sector to develop home-grown supply, though it will continue monitoring the situation to assess if additional support mechanisms are required.

Group of Seven (G7) members and the European Union were reported to be considering price floors for rare earth production as well as taxes on certain Chinese exports to incentivize investment back in September. The U.S. provided a guaranteed minimum price to rare earths group MP Materials in July as part of a multibillion-dollar Pentagon investment, with sources indicating the mechanism is likely to be extended to other firms. McDonald met with U.S. Pentagon officials in London on Monday, ...