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1h ago

G7 Agrees Plan to Protect Critical Mineral Supply as China Issues Limited Rare Earth Licenses

It targets mining diversification under a unified action plan following provisional approval at the G7 summit with input from parallel U.S.-China talks in London.

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Despite their name, most rare earth elements are relatively abundant. The process of mining rare earths and transforming them into usable materials is, however, expensive and damaging to the environment. Credit: VCG.
Raw Rare Earth ore waiting to be processed at Vital Metals in Saskatoon, Saskatchewan, Canada January 16, 2023. REUTERS/Nayan Sthankiya/File Photo
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Overview

  • G7 leaders provisionally agreed to shield economies by ensuring critical minerals markets reflect real extraction and processing costs.
  • The action plan calls for diversifying mining, processing, manufacturing and recycling to lessen dependence on Chinese suppliers.
  • China controls roughly 70% of global rare earth production and about 90% of processing yet has granted limited export licenses to U.S. firms.
  • U.S. President Donald Trump and President Xi Jinping have pursued talks in London to ease export controls and avert manufacturing and defense sector shutdowns.
  • G7 members plan to mobilize tax credits, export finance and multilateral bank funding for new mines and downstream processing projects in allied countries.