Finance ministers from the Group of Seven (G7) nations are scheduled to meet in Washington on 12 January to discuss rare earths and other critical mineral supplies, three sources familiar with the plans said on Tuesday.
Price Floors on Agenda
One of the sources said the ministers are expected to debate possible price floors for rare earth elements an issue gaining traction as industrial nations seek to diversify supply chains and reduce dependence on China. The meeting will also cover broader strategies for securing access to key materials vital for clean energy technologies and high-end manufacturing.
G7 economies, except Japan, remain heavily or entirely reliant on China for rare earth magnets, battery metals, and other critical resources essential to electric vehicles, renewable energy systems and defence industries.
Drive to Reduce Dependence on China
In June last year, G7 leaders agreed on an action plan aimed at strengthening supply chain resilience and boosting investment in alternative sources. Since then, officials have been examining pricing mechanisms to make mining and processing projects outside China economically sustainable.
The United States took an early step by introducing a minimum price in a government-backed contract for domestic rare earth supplies in 2024. That initiative is viewed as a model for future cooperation among G7 members, which also include Canada, France, Germany, Italy, Japan, and the United Kingdom.
Economic and Strategic Context
The discussion reflects growing concern among Western nations about China’s dominance in critical minerals a sector Beijing has occasionally used as leverage in geopolitical disputes. Establishing price floors could encourage long-term investment in mining and refining projects in partner countries, ensuring stable access to these strategic materials.
A spokesperson for the U.S. Treasury, which will host the meeting, did not immediately respond to a request for comment. The upcoming talks are expected to produce a joint statement outlining next steps in implementing the G7’s supply chain diversification plan.
with inputs from Reuters
