EVIAN-LES-BAINS: Group of Seven (G7) leaders agree to step up coordination to cut their countries’ reliance on China for critical minerals, including plans to align stockpiling and launch a new platform with a bigger role for the International Energy Agency.
Western powers are racing to diversify supplies of metals vital to defence, technology and renewable energy and reduce dependence on China.
Beijing rattled global markets last year when export curbs on permanent magnets disrupted industries, exposing their reliance on a single source.
Without naming China, the leaders said they aim to reduce dependence on any one supplier outside the G7 and partner countries for rare earths and permanent magnets to below 60% by 2030, with an ultimate goal of 50% “as soon as possible”.
“We are committed to working towards establishing harmonised, interoperable mechanisms
“This would start with two pilot critical minerals – lithium and nickel – and aim to avoid undermining competitiveness or imposing excessive cost burdens,” the leaders said in a joint statement.
The mechanisms would later expand to five new minerals each year with a focus on rare earth elements.
The 60% target will be challenging, analysts said, especially in terms of processed rare earths and magnets where China controls 90% of global output. — Reuters
