Global Leaders Tackle Rare Earth Dependency: A Strategic Shift from China

Finance ministers from the G7 and other major economies convened in Washington to explore reducing reliance on China's rare earths. Discussions focused on creating new partnerships, policy approaches, and setting a price floor. Addressing the strategic supply chain diversification is seen as critical to global defense and technology sectors.

Finance ministers representing the G7 and other significant global economies gathered in Washington, spearheaded by U.S. Treasury Secretary Scott Bessent, to address a critical issue: reducing dependency on China's rare earth supplies. These discussions are pivotal as rare earth minerals are essential for defense technologies and renewable energy.

The meeting involved officials from nations including Japan, Britain, France, Germany, Italy, and Canada, with participation from prominent financial and trade institutions. The aim is to explore solutions that ensure supply chain diversification while prioritizing de-risking strategies over full decoupling from China.

As China imposes restrictions on rare earth exports, the call for swift action to develop alternative sources grows louder. With the EU and participating nations covering 60% of global demand, strategic partnerships and financial mechanisms, like a rare-earths price floor and resource fund, are considered to secure and expand supply avenues beyond China.

(With inputs from agencies.)