G7 Forms New Plan to Cut China’s Control Over Key Minerals

The seven leading industrial nations have announced a fresh strategy aimed at cutting their reliance on China for the metals and minerals that power cars, batteries, and defence equipment. At a recent summit in Evian, France, the leaders signed a statement calling for joint action with other friendly nations to build their own processing plants and supply chains for these critical resources.

Key Points of the Declaration

• No Direct Naming: The declaration does not name China directly, but it clearly highlights the danger of depending on a single country for essential materials.
• Export Limits and Pressure Tactics: It warns that China’s use of export limits and other pressure tactics can threaten global economic safety.
• Unified Front: The G7 vows to work together with partners so that any attempt to weaponise these dependencies will fail.

Strategic Measures

• Strategic Stockpiles: Part of the plan includes keeping strategic stocks in industrial and public use.
• Information Sharing: Countries will share warning signs about supply shocks or price spikes with like‑minded partners.
• Long‑Term Vision: While it remains to be seen how this new alliance will tackle China’s dominance from mining to refining, the intent is clear.

Current Chinese Dominance

• Refining Control: China already controls most of the world’s refining for 19 out of 20 key minerals, with an average share near 70 %.
• Rare Earths: China mines about 59 % of the world’s supply, refines 91 %, and produces nearly all (94 %) of the permanent magnets that drive electric cars, wind turbines, and advanced electronics.

U.S. Response

• Price‑Floor System: The United States is proposing a price‑floor system to protect the market from Chinese manipulation, arguing that China’s rules let Beijing set prices that benefit its own interests.
• Bipartisan Report: A recent bipartisan report described a long‑term plan by China to keep control over these minerals for strategic reasons, not market fairness.

Challenges Ahead

The G7 and its allies still face challenges, especially in funding new projects to break free from China’s stronghold on critical minerals.