Finance ministers and central bank governors of the Group of Seven (G7) on May 14 adopted a joint statement pledging steps to shore up strategic mineral supply chains.
The move comes amid growing concern over heavy dependence on China for resources critical to high-tech industries, including semiconductors, electric-vehicle batteries, and defense equipment.
The G7 joint statement said member nations will boost cooperation to diversify sources of supply, invest in domestic mining and processing as well as with trusted partners, and promote labor and environmental standards.
China currently dominates supply chains for many strategic minerals, including rare earths, lithium, and graphite. According to the latest data, Beijing controls up to 80% of the global rare earth supply and accounts for more than half of lithium and graphite refining capacity.
The G7 decision comes as the Biden administration pushes the U.S. and allies to ramp up investment in mining and processing capacity, while forging new trade deals with resource-rich countries such as Australia, Canada, and African nations.
Economists assess that reliance on China for strategic minerals represents a serious gap in Western economic and defense security, especially amid rising tensions with Beijing over Taiwan and the South China Sea.
The G7 includes the United States, the United Kingdom, Canada, France, Germany, Italy, and Japan. This meeting took place in Stresa, Italy, following the May 2023 summit in Hiroshima, Japan, where G7 leaders first committed to reducing dependence on Chinese supply chains.
