Rare earth elements: A deep dive into the private investment landscape

Rare earth elements are crucial in the development of Net Zero innovations so, in today’s rapidly changing world, it is essential that we can ensure resilient and sustainable supplies of these and other critical minerals.

Investing in the critical materials supply chain

A wide range of critical minerals are required for the technologies and innovation required to decarbonise the transport, energy, and industrial sectors and achieve the UK’s Net Zero ambitions. Of these minerals, Rare Earth Elements underpin so much of what makes our everyday life and work possible, from the cars we drive to the phones we use.

Central to the challenge of developing strong supply chains is the investment required to support organisations on their innovation journey in this emerging sector. The Critical Materials Private Investment Report details the overarching opportunities and challenges faced by private investors when navigating investment into the rare earth supply chain. It features insights on equity funding activity across the primary (mine to magnet) and secondary (End of Life to magnet) supply chains both globally and nationally.

Through this, the report provides a comprehensive overview of the funding appetite amongst investors as well as the support structures and mechanisms required to encourage more private finance providers into the space.

Key takeaways

Building energy efficiency and retrofits

Insights

Key decision makers deploying private sector funding need to be more informed of the opportunities available to them within the UK’s rare earth supply chain to encourage them to diversify their portfolio.

clear and reliable

Collaboration

Collaboration rather than competition is crucial to accelerate private investment and build the market in this space. A connected ecosystem of corporates, startups, government, industry, and academic stakeholders can increase investment by developing a coordinated approach.

Collaborative

Alignment

Each area of the supply chain, whether primary or secondary, needs to be aligned with the correct investor type to enable the creation of a connected value chain that scales sustainably and leads to long-term growth.

Private wire and heat networks

Support

Continued long-term government support will reduce the risks and provide a more predictable investment environment that allows investors to look at the supply chain areas they are currently more hesitant to engage with.

Megan Phoenix

Our Expert

Megan Phoenix

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Related programmes

Circular Critical Materials Supply Chains

Circular Critical Materials Supply Chains

This £15 million programme will support the development of resilient UK based supply chains for rare earth elements, with a focus on primary (mine to magnet) and secondary (End of Life to magnet) supply chains.

Investor Partnerships Future Economy

Investor Partnerships Future Economy

A three-year initiative to boost Future Economy-focused SMEs through aligning grant funding for R&D development with investment from partnerships with credible investor partners.

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