What is the IPPR's warning about China's role in UK energy?

The IPPR warns that over-reliance on China for clean energy components risks significant job losses and economic disruption in the UK.

How does China's control of minerals affect UK energy security?

China refines 80-90% of critical minerals, making the UK vulnerable to geopolitical shocks and trade disruptions if supply chains are compromised.

What policy does the IPPR recommend for UK energy resilience?

The IPPR recommends a policy of 'securonomics,' involving increased international investment, partnerships, and domestic production to secure energy supplies.

Home / Business and Economy / UK Energy Security: China Risk Exposed

UK Energy Security: China Risk Exposed

16 Jan

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Summary

China supply chain shock could cost UK 90,000 jobs.
Electric vehicle production risks 580,000 car loss.
China refines 80-90% of critical minerals globally.

A prominent thinktank has issued a stark warning regarding the UK's vulnerability to supply chain disruptions, particularly those stemming from an over-reliance on China for clean energy components. The Institute for Public Policy Research (IPPR) reports that a year-long disruption to essential battery components could halt production of over 580,000 electric cars, jeopardizing 90,000 jobs. Such a shock would also delay solar farm rollouts, increasing the UK's reliance on costly gas generation.

This analysis underscores growing international concerns over geopolitical instability impacting global trade. China's significant control over the refining of critical minerals—estimated at 80% to 90% globally—leaves the UK and its allies exposed to economic and political shocks. The IPPR advocates for a policy of 'securonomics,' emphasizing international partnerships and investment to build more resilient supply chains for the UK's energy future.

The thinktank urges the government to clarify its stance on Chinese investment in UK energy infrastructure and to boost domestic production of batteries and green steel. Furthermore, collaborating with allies to create international stockpiles of essential components and minerals is proposed to mitigate future supply chain risks. A government spokesperson affirmed that strategies are in place to reduce import dependency and protect British jobs.