US Begins Talks With Allies on Rare Earths at G7, Urges to Bolster Supply Chains

The United States has stepped up efforts to reduce global dependence on China for critical minerals, urging key partners and allies to strengthen supply chain resilience for materials essential to clean energy, advanced manufacturing and defence, according to officials familiar with the discussions.

The push came during high-level talks in Washington hosted by US Treasury Secretary Scott Bessent, where finance officials from the Group of Seven (G7) nations met counterparts from countries including Australia, India, South Korea, Mexico and representatives of the European Union.

US officials said Bessent called on participants to work collectively to diversify sourcing and processing of critical minerals such as rare earths, lithium, cobalt and copper, warning that excessive concentration of supply poses economic and strategic risks. “Resilient supply chains are essential to economic security,” the Treasury said in a statement following the meeting.

China’s Unilateral Curbs

China currently dominates large parts of the global critical minerals processing chain, controlling an estimated 47% to as much as 87% of refining capacity for several key minerals, including rare earths, lithium and cobalt. Western governments have grown increasingly concerned that such concentration leaves industries vulnerable to export curbs or geopolitical pressure.

According to officials briefed on the talks, proposals discussed included encouraging new mining and processing projects outside China, supporting recycling and alternative technologies, and examining mechanisms such as price floors to help non-Chinese producers compete with established suppliers.

The discussions come against the backdrop of rising trade and geopolitical tensions, including recent Chinese export restrictions on certain materials used in electronics and defence applications. US officials stressed that the initiative is aimed at “de-risking” rather than severing economic ties, framing it as a bid to ensure reliable access to essential inputs.

Progress Made by Allies

The meeting also highlighted diverging progress among allies. While the United States and Australia have accelerated investment and policy support for critical minerals, officials acknowledged that parts of Europe continue to lag due to regulatory hurdles and slower project approvals.

Australia, for its part, recently announced plans for a A$1.2 billion strategic reserve focused on minerals such as antimony, gallium and rare earths, underlining a broader shift among US allies toward stockpiling and domestic capability-building.

The United States has signalled that engagement with partners will continue through existing forums, including the G7 and bilateral channels, as it seeks to translate political alignment into concrete projects across mining, processing and downstream manufacturing.

Officials said further meetings are expected in the coming months as governments and industry work to turn commitments into investment decisions, at a time when demand for critical minerals is projected to rise sharply with the global energy transition.

  Australia, China curbs, G7 summit, rare earths, US call