The UK is “dangerously” dependent on China for critical raw materials needed for the military, renewable energy infrastructure and AI, a parliamentary investigation has found.

MPs on the business select committee called for an urgent centralised policy and the creation of a “critical minerals finance facility” to help fund rare earth and other critical mineral mines, and deploy grants, equity and debt to accelerate a diversification programme.

“Critical minerals are the alpha of the new economy,” said the committee’s chair, Liam Byrne. “We cannot rearm Britain, build AI or deliver net zero unless we secure the minerals these technologies depend on.

“Yet 16 years after China first weaponised its chokehold over rare earths, Britain remains dangerously exposed.”

It is the second time in a week that the government’s policy on China has been criticised by Byrne’s committee.

China has a stranglehold on the world’s supply of rare earths and other critical minerals, as well as their refined byproducts that are…