Critical Minerals Programme: Magnet Hub

The Magnet Hub competition is part of the £50 million Critical Minerals Programme announced in June 2026. The programme supports the UK’s ambitions to strengthen critical minerals supply chains and economic security, build domestic production and resilience, and support economic growth through the government’s Critical Minerals Strategy.

Building on the success of Innovate UK’s programme developing resilient UK-based supply chains for rare earth elements, the Magnet Hub competition will provide up to £20 million of grant funding to support a UK-based facility for developing new and innovative manufacturing capability for rare earth magnets. The successful organisation will develop a world-class national facility that supports innovation, skills development and the scale-up of rare earth permanent magnet manufacturing in the UK. The overarching objective is to scale the production of rare earth permanent magnets in the UK, increasing the UK’s leadership across the rare earth value chain and making it globally competitive and resilient.

Rare earth permanent magnets are a critical component in technologies used across the Industrial Strategy’s growth sectors including clean energy, advanced manufacturing and defence. The Magnet Hub will help strengthen UK capability in this strategically important area by supporting manufacturing, recycling, skills development and collaboration between industry and academia.

What the Magnet Hub will do

The Magnet Hub will:

• develop technical skills and workforce capability for magnet manufacturing
• develop innovative advanced manufacturing processes and technologies
• provide shared access to specialist equipment for industry use
• strengthen domestic equipment capability and supply diversity

The facility is expected to provide long-term benefits for the UK economy by increasing domestic manufacturing capability, strengthening supply chain resilience, supporting innovation and attracting private investment.

Funding available

The Department for Business and Trade (DBT) will provide up to £20 million to fund one Magnet Hub. The funded project must take place in the UK and deliver grant-funded activity by 31 March 2030.

Applicants should request only the minimum amount of funding required to deliver their proposal and will need to demonstrate value for money as part of the assessment process.

Who can apply

• UK-registered businesses
• universities and academic institutions
• research and technology organisations (RTOs)

Applications may be submitted by a single organisation or by a consortium of organisations, with one lead applicant. Only one organisation or consortium will be selected to establish and operate the Magnet Hub.

How to apply

Expression of Interest

Applicants must first submit an Expression of Interest (EOI). EOIs will be assessed against the aims of the competition and used to identify applicants who will be invited to submit a full application. Applicants who have not submitted an EOI will not be eligible to submit a full application.

You can submit your EOI on the Grants Hub.

Full application

Applicants invited to progress will be asked to provide more detailed information including on their proposal, delivery model, funding requirements and long-term sustainability plans. Successful applicants will then be subject to due diligence checks before any approval and subsequent grant funding agreement is issued.

Key dates

• Expression of Interest opens – 1 July 2026
• Expression of Interest closes – 22 July 2026
• Notification of EOI outcome – August 2026
• Full application window – August/September 2026
• Funding decision – Autumn 2026
• Grant funding period ends – 31 March 2030

How this fits within the Critical Minerals Programme

The Magnet Hub is one of three pillars of the Critical Minerals Programme alongside the Critical Minerals Accelerator and the Demand Aggregation Platform. Together, these initiatives aim to strengthen UK supply chain resilience, support domestic production and recycling, accelerate commercialisation of innovative technologies, and create high-value jobs across the UK.

Help and guidance 

More information about the competition can be found in the Magnet Hub scheme guidance document.

If you require clarification on the scheme or information relating to your application, please email magnethubgrantscheme@businessandtrade.gov.uk.