G7 Nations Pressed to Speed Up Critical Minerals Strategy Amid China's 87% Global Control

Urgent Action Called to Diversify Supply Chain

The United States is leading efforts to urge G7 countries to accelerate their initiatives to reduce dependence on China for critical minerals, as China dominates 87% of the global supply. This push comes as US Treasury Secretary Scott Bessent hosts a high-level meeting with finance ministers from G7 nations, the European Union, Australia, India, South Korea, and Mexico. The gathering represents countries accounting for 60% of global demand for these essential resources.

Background of Growing Concern

The urgency surrounding critical minerals has escalated following China's recent threats to implement strict export controls. This development has raised significant concerns among G7 nations about their vulnerability to supply chain disruptions. The situation is particularly pressing given China's historical use of export restrictions as a geopolitical tool, notably in 2010 when it suddenly halted exports of certain minerals to Japan.

Current State of Global Critical Minerals Market

China's dominance in the critical minerals sector is a result of years of strategic investment and development. The country has successfully positioned itself as the primary supplier of these essential materials, giving it significant leverage over other nations. The G7 and other invited countries recognize the need to diversify their supply chains to mitigate the risks associated with over-reliance on China.

Path Forward: Diversification and Collaboration

The upcoming meeting is expected to focus on collaborative strategies to secure alternative sources of critical minerals and strengthen domestic industries. Key areas of discussion are likely to include investment in mining projects outside China, development of recycling technologies, and enhancement of supply chain resilience. The initiative reflects a growing recognition among Western nations of the strategic importance of critical minerals in maintaining their economic and technological competitiveness.