Finance ministers from the G7 and other major economies met in Washington to discuss strategies to reduce reliance on Chinese rare earths. Proposals included setting price floors, forging new supply partnerships, and diversifying critical mineral sources. The talks highlight urgency as China controls the majority of global rare earth supply.
Global leaders are intensifying efforts to secure critical mineral supply chains. At a high-level meeting in Washington, finance ministers from the G7 nations—Japan, Britain, France, Germany, Italy, Canada, and the U.S.—alongside officials from Australia, Mexico, South Korea, and India discussed ways to curb dependence on Chinese rare earths.
Key Highlights
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Urgency in diversification: China currently dominates rare earth production, controlling nearly 70% of global supply.
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Policy proposals: Ministers debated setting a price floor and building new partnerships to strengthen alternative supply chains.
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Expanded participation: Beyond the G7, countries like India and Australia joined, signaling a broader coalition against supply chain vulnerabilities.
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Strategic context: Rare earths are vital for clean energy, defense, and high-tech industries, making diversification a geopolitical priority.
Market Implications
Reducing reliance on China could reshape global trade flows in critical minerals. While new partnerships may take time to materialize, the coordinated push reflects growing recognition of rare earths as a strategic resource underpinning future technologies.
Sources: The Hindu Business Line, New Indian Express, Zee News