G7 Finance Ministers Gather to Strategize on Rare Earth Supply Chains

G7 finance ministers will convene in Washington to address rare earth supplies, focusing on price floors and critical mineral topics. Most G7 nations depend heavily on China for these materials. The meeting aims to strengthen supply chains as per the action plan agreed upon in June last year.

Finance ministers from the Group of Seven nations are set to convene in Washington on January 12 to deliberate on the crucial issue of rare earth supplies, according to insiders familiar with the agenda. The gathering is expected to navigate various topics on critical minerals, with price floors taking the spotlight.

A key concern for G7 nations, with the exception of Japan, is their reliance on China for essentials such as rare earth magnets and battery metals. This dependency has highlighted the urgent need for diversification and resilience in their supply chains.

Last June, the G7 established an action plan aiming to secure these supply chains and fortify their economies, a commitment that will underpin discussions during the upcoming talks. This meeting is part of broader efforts to mitigate risks associated with over-reliance on Chinese mineral resources.

(With inputs from agencies.)