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G7 Moves to Reduce China Rare-Earth Reliance as Japan Begins Deep-Sea Test Mining

Ministers in Washington endorsed faster derisking to diversify critical mineral supplies.

Overview

  • China confirmed a ban on exports of dual-use items to Japanese military end users, and Chinese state firms have reportedly refused new rare-earth contracts with some Japanese companies.
  • Japan’s research vessel Chikyu departed Shimizu for waters near Minamitorishima on a month-long trial to lift rare-earth-rich seabed mud from about 6,000 meters, with tests running through Feb. 14 and larger trials targeted for 2027 if viable.
  • The United States hosted G7 finance ministers and partners who agreed to hasten efforts to cut dependence on China for critical minerals and emphasized prudent derisking over decoupling.
  • Participants discussed coordinated tools such as onshoring, recycling, market monitoring, and even a potential price floor for rare earths to counter intentional market disruptions.
  • Japan has trimmed direct rare-earth imports from China to roughly 60% but remains highly dependent for heavy elements used in magnets, and media cite very large deposits around Minamitorishima though commercial viability remains uncertain.