The shortlist for this year's award was announced on Thursday (23Jul20), with 12 artists in the running for the prestigious accolade celebrating albums made by British and Irish acts.
On being nominated, Dua told the BBC, "I never really thought this would ever happen to me." Said Lipa, "Maybe I just didn't think I was cool enough."
The two pop artists are among seven women or female-fronted groups up for the award, beating the previous record of five.
"This album was like therapy to me," Charli told BBC 6 Music. "It was a real emotional release. I decided once quarantine began that I could not really sit still, and I had to create something for my own piece of mind. I feel honoured to have my little corner of experimental pop music be recognised."
Indie bands shortlisted include up-and-comers Sports Team, who are nominated for their acclaimed debut "Deep Down Happy", and Brighton rockers Porridge Radio for "Every Bad".
The other acts with albums nominated are Anna Meredith for "FIBS", Georgia's "Seeking Thrills", Lanterns on the Lake's "Spook the Herd", Laura Marling for "Song for Our Daughter", as well as Michael Kiwanuka and Moses Boyd for their records "KIWANUKA" and "Dark Matter".
The winner will be chosen by a panel that includes Jorja Smith, ex-Supergrass frontman Gaz Coombes, jazz crooner Jamie Cullum, Anna Calvi, and industry professionals including DJ Annie Mac. The triumphant act will be announced on 24 September.
Rapper Dave's album "Psychodrama" emerged victorious last year, taking home $33,000 (£25,000) in prize money.
The full list of 2020 Mercury Prize nominees is as follows: