he UK government has unveiled two major funding packages worth a combined £470 million to strengthen the nation’s chemicals and ceramics sectors, both of which face rising energy costs and mounting pressure to decarbonise.
The larger £350 million Critical Chemicals Resilience Fund will safeguard strategically vital chemical producers supplying essential materials to industries such as food, healthcare, energy, and water. The funding aims to modernise infrastructure, enhance competitiveness, and accelerate the transition from gas‑based systems to electrification. Officials confirmed that the scheme will be developed in collaboration with industry representatives and independent experts to ensure long‑term resilience.
A separate £120 million support package targets the ceramics industry, helping manufacturers invest in energy‑efficient technologies and decarbonisation projects. The government highlighted ceramics’ strategic importance beyond household goods, noting their critical role in defence, aerospace, and medical technologies — from aircraft engine coatings and armour plating to hip implants and spacecraft panels.
Eligible UK manufacturers across subsectors such as refractory products, clay building materials, household ceramics, and technical ceramics will be able to apply for support. Ministers also encouraged producers to engage with the Trade Remedies Authority to address unfair trade practices and support new investigations.
Industry leaders welcomed the focus on electrification and sustainability but cautioned against uneven support across sectors. Verity Davidge, Director of Policy and Public Affairs at Make UK, warned that high industrial electricity prices could undermine competitiveness and risk further deindustrialisation if not addressed.
The funding marks a significant step in the UK’s effort to balance industrial resilience with its net‑zero ambitions, ensuring that decarbonisation strengthens — rather than weakens — the country’s manufacturing base.
