### G7 and Allies Unite to Tackle Dependence on Chinese Rare Earths The recent meeting of G7 finance ministers and representatives from allied nations in Washington, led by U.S. Treasury Secretary Scott Bessent, focused on the urgent need to reduce reliance on Chinese rare earth minerals. These minerals are critical for various industries, including defense technologies and renewable energy. The discussions highlighted China's dominance in the supply chain, where it refines between 47% and 87% of essential minerals like copper, lithium, cobalt, and graphite, raising concerns about supply chain vulnerabilities and national security risks [https://www.businesstimes.com.sg/international/g7-other-allies-discuss-ways-reduce-dependence-chinese-rare-earths, https://www.devdiscourse.com/article/headlines/3767418-global-leaders-tackle-rare-earth-dependency-a-strategic-shift-from-china]. ### Key Discussion Points and Structure of the Meeting 1. **Setting a Price Floor**: The G7 ministers discussed the possibility of establishing a price floor for rare earths to stabilize the market and encourage alternative supply development [https://www.stratnewsglobal.com/world-news/g7-india-discuss-reducing-dependence-on-chinese-rare-earths]. 2. **New Partnerships**: The meeting emphasized forming new partnerships to build alternative supplies of critical minerals, aiming to diversify sources away from China [https://www.eutoday.net/g7-weighs-rare-earth-price-floor-to-cut-china-reliance]. 3. **Urgency of Action**: U.S. officials underscored the need for quicker action to mitigate risks associated with China's control over the supply chain, especially in light of recent export restrictions [https://www.washingtonexaminer.com/policy/energy-and-environment/4414731/treasury-secretary-bessent-hosts-australia-india-g7-talk-critical-minerals]. 4. **Inclusion of Non-G7 Nations**: The discussions included representatives from Australia and India, highlighting a collaborative approach to address the global challenge of rare earth dependency [https://www.thestar.com.my/aseanplus/aseanplus-news/2026/01/10/us-treasury-secretary-says-australia-india-invited-to-g7-meeting-on-critical-minerals]. ### Supporting Evidence and Data - **China's Dominance**: Reports indicate that China refines a significant percentage of critical minerals, with estimates ranging from 47% to 87% for various materials [https://www.businesstimes.com.sg/international/g7-other-allies-discuss-ways-reduce-dependence-chinese-rare-earths]. - **Global Demand**: The G7 nations collectively account for approximately 60% of the global demand for critical minerals, underscoring the importance of reducing reliance on a single source [https://www.newindianexpress.com/world/2026/jan/11/us-to-urge-g7-nations-to-reduce-dependency-on-china-for-rare-earths]. - **Strategic Importance**: Rare earth minerals are essential for technologies in defense and renewable energy sectors, making their supply chain security a national priority for many countries [https://www.devdiscourse.com/article/headlines/3767418-global-leaders-tackle-rare-earth-dependency-a-strategic-shift-from-china]. ### Conclusion: A Unified Approach to Rare Earth Supply Security In summary, the G7 and allied nations are taking significant steps to address the critical issue of dependence on Chinese rare earths. The meeting led by U.S. Treasury Secretary Scott Bessent resulted in a multi-faceted approach that includes: 1. **Establishing a price floor** to stabilize the market. 2. **Forming new partnerships** to diversify supply sources. 3. **Accelerating action** to mitigate risks associated with China's dominance. 4. **Collaborating with non-G7 nations** to enhance global supply chain security. These efforts reflect a strategic shift towards securing critical mineral supplies essential for economic and national security [https://www.washingtonexaminer.com/policy/energy-and-environment/4414731/treasury-secretary-bessent-hosts-australia-india-g7-talk-critical-minerals, https://www.devdiscourse.com/article/headlines/3767418-global-leaders-tackle-rare-earth-dependency-a-strategic-shift-from-china].