September 25, 2025

Hold on tight! The Group of Seven (G7) nations and the European Union (EU) are stirring the pot to reduce their heavy dependence on China for rare earth minerals. Why all the buzz? Because China controls most of the world’s rare earths — those tricky-to-get metals essential for making everything from smartphones to cars to high-tech weapons. In April, China surprised the world by tightening export controls on these materials, hitting back after the US slapped tariffs on Chinese goods. This move sparked worries across Europe, especially among automakers, causing shutdown threats. Although China tried to ease tensions by fast-tracking licenses for Europe in May and upgrading export procedures by July, delays in approvals still put companies at risk of fresh production halts. Now, the G7 and EU are cooking up some spicy strategies! Sources close to the talks told Reuters that leaders are eyeing price floors — a kind of minimum price to encourage more mining and production — backed by government support. Australia and Canada are warming up to these ideas as well. The US is actively chatting with G7 and EU partners about tariffs or taxes on rare earth imports from China, especially based on how much dirty energy China uses to produce these metals. The big question on everyone’s mind: Should they tighten rules on foreign investments in critical materials to stop companies from heading over to China? Some want strict local content rules or limits on buying Chinese supplies in government contracts. But the group is split on how tough to get. Even more exciting, the EU is considering bold moves like joint purchasing of rare earths or creating a huge stockpile of these precious metals—similar to how oil reserves work—to guard against future shocks. Stephane Sejourne, the EU’s industry commissioner, said back in June, “The EU should create a joint stockpile of rare earths and strategic materials.” Nothing is set in stone yet, but the plans are sizzling. So, the next few months will be thrilling as the G7, EU, Australia, Canada, and the US plot to spice up their rare earth supply chain and cut down China's monopoly. Will this bold recipe work? Time will tell, but one thing’s for sure — the world is watching this rare earths showdown closely!

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Tags: G7, Rare earths, China export controls, Critical minerals, Price floors, Supply chain,