G7 Moves to Cut Dependence on China for Critical Minerals

G7 leaders have agreed to coordinate more closely to reduce dependence on supplies of critical minerals from outside the group, particularly rare earths and permanent magnets. The plan includes harmonizing stockpiling efforts, promoting investment and establishing a new platform in cooperation with the International Energy Agency (IEA).

Western countries are seeking to diversify supplies of raw materials essential for defense, the technology industry and renewable energy. Last year's export restrictions on permanent magnets, which disrupted global supply chains, also acted as a catalyst.

The G7 has set a target of reducing dependence on any single external supplier for rare earths and permanent magnets to below 60% by 2030, with a long-term goal of 50%. The first raw materials targeted by these mechanisms will be lithium and nickel, with the system later expanded to include other critical minerals and rare earth elements.

Analysts warn that achieving this goal will be challenging, as China currently controls approximately 90% of global production of processed rare earths and magnets.

The G7 countries will also establish a platform for policy coordination, data exchange and crisis response, and aim to support the building of strategic reserves of critical raw materials and the development of recycling capabilities.

(Reuters, Max)