Rachel Reeves will ditch Britain’s over-reliance on China to secure critical minerals needed for electric vehicles and phones.
The Chancellor wants to safeguard the long-term supply of lithium, graphite and cobalt for major industries by giving them financial backing.
She is set to announce the boost for UK companies at the Budget to help in defence, aerospace and renewable energy.
Western countries have been looking to break the Communist country’s grip on minerals essential for hi-tech goods.
The minerals are essential for electric vehicles navigation systems, wind turbines and solar panels.
The move will also make it easier for UK Export Finance to secure contracts for suppliers in Commonwealth countries who have mineral deposits.
The Prime Minister’s official spokesman said: “We believe the Commonwealth has a huge potential to build shared resilience in the face of today’s global challenges.”
Australia has large deposits of lithium used to make batteries for smartphones and electric vehicles.
Meanwhile Sir Keir Starmer has secured a £1 billion funding pledge from one of AUstralia’s biggest pension fund.
AustralianSuper, a profit-for-member superannuation fund, will initially invest in Central London office sites.
The Fund expects to manage £250 billion from its London office by 2035, an increase of more than 10 times over the next decade, from its current management of around £15 billion from its UK base.
The Prime Minister met Paul Schroder, the CEO of the Australian firm, after arriving in Samoa on Thursdy to discuss the move.
Sir Keir said: “These investments are a major vote of confidence in the UK, and in this Government.
“I am determined to ensure that UK is the best place in the world to invest and do business, so we improve the lives of hardworking people.
“By attracting strong, sustained investment, we will also build the expertise we need to drive innovation, stay ahead of the global game, and support economies around the world with British backed projects.”