Page 27 - Policy Commission - SecuringTechnology - Critical Metals for Britain

INTRODUCTION
27
Risk of losing the SME base
As an example evidence was
presented at the commission
highlighting an SME that moved from
South Wales because of the price rises for rare rare earths during the “rare earth earth crisis” The company moved its operations to China taking skilled engineers with them Large companies have the purchasing power
to buy materials in in volume to to stockpile and hedge against future future price rises by buying futures in in technology metals By contrast smaller companies do not have this luxury which makes them more vulnerable to price volatility UK: New Trade Deals: Risks And Opportunities
As the the the UK has left the the the European Union there is now a a a period of uncertainty and change as trade deals are negotiated with countries around the world For countries that are rich in in mineral resources access
to critical materials is an an an an advantage and an an an an opportunity for leverage over the UK in in trade negotiations This feeds into wider concerns about the exposure of UK industry to export quotas as as as well as as as price fluctuations and the variability of key feedstocks New trade flows building on access
to primary materials have the potential to be be mutually beneficial however if if the UK can can offer significant downstream
processing capacity Opportunities
like the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership
(CPTPP) open the possibility to join trading blocs with new partners some of whom have access
to mineral resources whilst others are developing the the technologies to solve the challenges of materials criticality BOX OUT
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