In a move to bolster economic security and reduce the risks of over-reliance on a single source, G7 member states have agreed to target cutting the share of rare earth imports from any one supplier to below 60% by 2030.
The plan comes amid rising global demand for rare earth minerals, which are essential for producing electric vehicle batteries, wind turbines, electronics, and military hardware. Currently, China accounts for more than 80% of the world's refined rare earth supply, leaving developed economies vulnerable to export controls or political instability in the region.
According to a joint statement after the recent G7 summit, the group pledged to boost cooperation with other resource-rich nations, invest in domestic recycling and processing technologies, and support new mining projects to diversify supply. The specific target is to reduce dependence on any single rare earth supplier to under 60% by the end of the decade.
Analysts describe the goal as ambitious but feasible if member states coordinate financial and technical efforts. The United States has initiatives such as the Inflation Reduction Act (IRA) encouraging domestic mining and processing, while the EU is pushing its Critical Raw Materials Act. Japan and South Korea, major rare earth importers, are now seeking new partners in Australia, Africa, and Latin America.
The G7's move is expected to reshape the global rare earth market and challenge dominant exporting countries that have long controlled the value chain from extraction to refining. However, experts warn that building new refineries and signing long-term contracts with alternative suppliers will take years, meaning the 2030 target requires immediate implementation efforts.
