The Group of Seven (G7) has launched a critical minerals alliance to reduce its strategic dependence on China, which controls up to 90% of rare earth processing. The G7 set a target to cap reliance on any single supplier at 60% by 2030. The plan includes a new platform with the IEA for market monitoring, coordinated stockpiling, and exploring investment tools like subsidies to secure supply chains vital for defense and green energy.
G7 Critical Minerals Alliance launch
- ▪The G7 action plan includes developing a road map by the end of 2026 for "standards-based markets for critical minerals"
- ▪Group of Seven (G7) leaders launched an action plan to coordinate and secure critical mineral supply chains, aiming to reduce reliance on China
China supply dependence reduction targets
- ▪On June 15, 2026, new Chinese regulations took effect to bring mineral resources further under state control
- ▪The G7 aims to reduce dependence on any single supplier for rare earths and permanent magnets to below 60% by 2030
- ▪China currently accounts for approximately 70% of global rare earth mining and 90% of processing capacity
- ▪After 2030, the G7's goal is to further reduce this dependence to 50% "as soon as possible"
- ▪Western powers view their dependency on Chinese rare earths as a long-term national security risk
- ▪Analysts believe the 60% target will be challenging, as China controls 90% of global output for processed rare earths and magnets
IEA market monitoring platform
- ▪The platform will work with the International Energy Agency (IEA) for market monitoring, analysis, and "early warnings of market distortions"
- ▪The G7 will establish a platform to coordinate policy, data sharing, and crisis response for critical minerals
Investment policy mechanisms
- ▪The G7 will explore financial tools like price-gap subsidies, joint procurement, quotas, and price floors to support supply chains
- ▪The alliance will start with pilot harmonized mechanisms for lithium and nickel, later expanding to five new minerals annually
Stockpiling and Recycling Commitments
- ▪G7 members committed to boost domestic stockpiling of critical minerals in both public and industrial sectors
- ▪The U.S. launched a $12 billion reserve called Project Vault in 2026, and the EU has shortlisted minerals for a joint stockpile
- ▪The G7 pledged to increase its joint recycling capacity to cover a "significant share" of annual critical material consumption by 2030
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