Summary:
-
US hosting G7 ministerial talks on rare earths
-
Aim is to reduce dependence on China-dominated supply chains
-
Treasury Secretary Bessent to lead discussions
-
Japan pushing issue amid China export curbs
-
Focus on defence, tech and clean-energy minerals
US to host G7 talks on rare earths as allies seek alternatives to China
The United States will host a meeting of Group of Seven ministers this week focused on rare earths and other critical minerals, as Washington and its allies intensify efforts to reduce reliance on China’s dominant position across global supply chains.
The discussions, scheduled to take place in Washington, will be led by US Treasury Secretary Scott Bessent and are expected to centre on developing alternative sources of supply, boosting processing capacity outside China, and coordinating investment frameworks among allied economies. Canadian Finance Minister François-Philippe Champagne is set to meet counterparts on Sunday and Monday, with officials from Australia, South Korea, India, Mexico and the European Union also expected to attend.
Rare earth elements and other critical minerals are essential inputs for defence systems, electric vehicles, renewable energy technologies and advanced semiconductors. While mining is geographically dispersed, China controls a commanding share of global refining and processing capacity, giving Beijing significant leverage during periods of geopolitical tension.
Japan has emerged as a vocal advocate for coordinated action following recent Chinese export restrictions affecting strategic materials. Tokyo has been engaging G7 partners on the issue, with concerns sharpened after comments by Prime Minister Takaichi Sanae on Taiwan heightened sensitivities around supply security in East Asia.
Japanese Finance Minister Katayama is expected to raise the importance of securing stable access to minerals critical for both military hardware and high-technology manufacturing during her visit to the United States. Japanese officials have long warned that supply disruptions could quickly ripple through global production chains, particularly in electronics and automotive sectors.
The G7 talks reflect a broader shift among advanced economies toward “friend-shoring” and diversification of strategic supply chains. However, building alternative capacity will take years, requiring substantial investment, environmental approvals and policy coordination. In the near term, officials are likely to focus on shared stockpiling strategies, financing mechanisms and diplomatic engagement with resource-rich emerging markets
