The Group of Seven (G7) leaders have provisionally agreed on a strategy to safeguard the supply of critical minerals, crucial for bolstering their economies. According to a draft statement seen by Reuters, the leaders recognize the threat posed by non-market policies and practices in the critical minerals sector to their ability to acquire these vital resources. “Non-market policies and practices in the critical minerals sector threaten our ability to acquire many critical minerals,” the draft statement reads.
The agreement comes in the wake of China’s decision in April to limit exports of a wide range of critical minerals and magnets, disrupting supplies for automakers, computer chip manufacturers, and military contractors worldwide.
US President Donald Trump had recently stated that Chinese President Xi Jinping agreed to allow rare earth minerals and magnets to flow to the United States. However, rare earths and other critical minerals remain a source of leverage for Beijing.
The G7 leaders have emphasized the importance of collaboration, both within their group and with partners beyond, to swiftly protect their economic and national security. This includes anticipating critical minerals shortages, coordinating responses to deliberate market disruption, and diversifying mining, processing, manufacturing, and recycling.
“Recognizing this threat to our economies, as well as various other risks to the resilience of our critical minerals supply chains, we will work together and with partners beyond the G7 to swiftly protect our economic and national security,” the draft statement said.
Furthermore, the draft statement highlights the need for minerals markets to reflect the real costs of responsible extraction, processing, and trade of critical minerals. The G7, like the previous administration, emphasizes building strategic reserves of key critical minerals to cushion against future supply shocks.
The agreement underscores the commitment of the G7 nations to address critical mineral dependencies and ensure stability in vital industries, from clean energy to defense, during times of global disruption or geopolitical tension. With the draft awaiting approval from US President Donald Trump, further discussions and potential modifications may be anticipated.