U.S. Pushes Allies to Act Faster on Cutting Dependence on China for Critical Minerals

BY COMFORT OGBONNA

U.S. Treasury Secretary Scott Bessent is set to press Group of Seven nations and other key partners to accelerate efforts to reduce their dependence on China for critical minerals, as Washington seeks to shore up supply chains vital to economic and national security. Bessent will host a meeting of senior finance and cabinet officials beginning with a dinner on Sunday evening, followed by talks on Monday, according to a senior U.S. official familiar with the plans.

The gathering will bring together finance ministers or cabinet-level officials from the G7 advanced economies, alongside representatives from the European Union, Australia, India, South Korea and Mexico. Collectively, these countries account for roughly 60% of global demand for critical minerals, giving the group significant leverage if it can coordinate policy and investment more effectively.

U.S. officials say the central message of the meeting will be urgency. Washington believes progress has been too slow since world leaders agreed on an action plan to secure supply chains at a G7 leaders’ summit in Canada in June. At that meeting, Bessent presented a detailed briefing on rare earths and other essential minerals to leaders from the United States, Britain, Japan, Canada, Germany, France, Italy and the European Union. While the summit produced broad commitments, U.S. officials have grown increasingly frustrated by what they see as a lack of follow-through.

China currently dominates the global critical minerals supply chain, refining an estimated 47% to 87% of key materials such as copper, lithium, cobalt, graphite and rare earth elements, according to the International Energy Agency. These materials are indispensable to a wide range of industries, including defense systems, semiconductors, renewable energy technologies, electric vehicle batteries and industrial refining. Beijing has repeatedly signaled its willingness to use export controls as a policy tool, heightening concerns among Western governments and manufacturers.

With the exception of Japan, which moved aggressively to diversify its supplies after China abruptly cut off shipments of rare earths in 2010, most G7 nations remain heavily reliant on Chinese sources. U.S. officials argue that this dependence leaves economies exposed to sudden disruptions and political pressure, especially as global demand for these minerals continues to rise.

The United States is expected to issue a statement following the meeting, but officials caution that a specific joint action plan or binding agreement is unlikely to emerge immediately. Instead, Washington hopes the discussions will help align priorities, share strategies and encourage partners to move more quickly, even if they do so in smaller coalitions at first.

U.S. officials say Washington is positioning itself as a convening force, aiming to demonstrate leadership by outlining its own plans and inviting others to participate at a similar pace. Those who are ready to act, officials say, can move forward together, while others may join later as the risks become clearer.

The Trump administration has been pursuing a range of measures to boost domestic production of critical minerals and reduce reliance on China, including agreements with resource-rich allies. In October, the United States signed a major agreement with Australia designed to counter China’s dominance, featuring an $8.5 billion project pipeline. The deal draws on Australia’s proposed strategic reserve, which would supply vulnerable materials such as rare earths and lithium in the event of disruptions.

According to U.S. officials, the initiative has already attracted interest from Europe, Japan, South Korea and Singapore, though they acknowledge that significant gaps remain. Progress has been made, they say, but the challenge is far from resolved.

The timing of Monday’s meeting is notable, coming just days after reports that China began restricting exports of rare earths and powerful magnets to Japanese companies, while also banning shipments of certain dual-use items to Japan’s military. U.S. officials stressed that the meeting had been planned well in advance of those developments, and noted that China has continued to meet some of its existing trade commitments, including purchases of U.S. soybeans and shipments of critical minerals to American firms.

Still, Washington views recent actions as a reminder of how quickly supply chains can be weaponized, reinforcing its call for faster, coordinated action among allies to secure the materials underpinning modern economies.