The United States brought together the Group of Seven countries, as well as Australia and India, in Washington, D.C., to discuss critical minerals Monday amid China’s continued chokehold on the sector.
In a statement, the Treasury Department said that Secretary Scott Bessent “expressed his optimism that nations will pursue prudent derisking over decoupling, and that they understand well the need to remedy current deficiencies in critical minerals supply chains.”
“Noting that these supply chains have also become highly concentrated and vulnerable to disruption and manipulation, the Secretary urged attendees to increase their supply chain resiliency, and thanked attendees for their willingness to both learn from and work quickly with each other towards decisive action and lasting solutions,” the department added.
The leading industrialized nations, also known as the G7, consist of the U.S., Britain, Japan, France, Germany, Italy, and Canada, as well as the European Union. Last June, the G7 agreed to an action plan to diversify and encourage investment in critical minerals projects.
Critical minerals and rare earths are strategic resources for countries worldwide, which need these materials to develop technology-based applications in sectors such as energy and defense.
However, China has used its market control against countries such as the U.S. and now Japan, raising national security concerns.
Most recently, China imposed export restrictions on rare earths and magnets on Japanese companies earlier this month. The restrictions follow Japan’s comments that it could deploy its military if China uses force to try to seize Taiwan. Japan has since reached out to G7 leaders regarding China’s restrictions.
Japanese Finance Minister Satsuki Katayama told reporters on Friday that, “The fundamental consensus among the G-7 nations is that it is unacceptable for countries to secure monopolies through non-market means.
“This poses a crisis for the global economy and is extremely problematic for economic security,” he added. Katayama was in attendance at Monday’s meeting.
Last year, China imposed several restrictions on the export of rare earth materials. In November, President Donald Trump reached a deal with China to lift some export controls for a year, but restrictions on other rare earths remain.
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The Trump administration has been working to expand the domestic supply chain for critical minerals. However, reducing dependence on China may take years. In the meantime, it has entered into agreements with other countries, including Malaysia, Thailand, Cambodia, and Australia, to diversify the supply chain.
To build up the supply, the administration has also pushed for reform legislation, fast-tracked permitting, and direct ownership in critical minerals companies. For instance, the administration has taken a 5% stake in Lithium Americas, a Canadian company developing a lithium mine and processing plant in Nevada, and a 15% stake in MP Materials to build a rare-earth magnet supply chain through the company’s second U.S. magnet facility.