Sir Keir Starmer’s answer to the need for a growth narrative is to turn to AI. Less than a year since he was ridiculing Rishi Sunak for becoming a “tech bro”, the Prime Minister has now promised to “mainline AI into the veins of the nation”. Whatever the politics , it is a brave assertion that AI will create rather than replace jobs but one for which there is a strong and growing evidence base. It has attracted cross party support including from former PM Tony Blair and the new Chancellor of Oxford University and former leader of the Opposition William Hague.

One big challenge will be that AI needs to be underpinned by data centres and these require cheap energy and access to the critical minerals to underpin this. Cheap, plentiful Energy requires either turning a blind eye to carbon emissions, something that the current UK Government is firmly opposed to, or accessing the vital critical minerals required to support a green transition.

Yet recent reports suggest that the UK is poorly placed to produce these minerals domestically and, perhaps more concerningly, the West in general and the UK in particular are losing ground in the global race.

In the last month the FT reports on Chinese companies gaining ground in the Sahel and consolidating their control of global Lithium supplies. UK critical minerals hopefuls such as Tungsten West have been struggling to raise funding and, since the publication of the UK Critical Minerals Strategy in 2022, there has been precious little progress in developing the domestic industry. This needs to change if the UK is to compete for hosting global data centres and grow a world leading AI industry.

However with majors such as Rio Tinto stepping up their investment in the sector and and clear support for investing in critical minerals from across the political spectrum, with the encouraging news that emerging mining powers such as Saudi Arabia are signing up to work with Western countries, and with a UK Minister on their way there to sign a deal, perhaps 2025 could be the year that the link between a digital future and the materials that underpin it finally break through into the consciousness of investors and Government alike? For the UK to really punch above its weight in AI, let alone in net zero, it needs to be.

If you want to discuss these themes or engage with the case for critical mineral contact Robin Walker, our Head of practice for Metals & Mining.