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The G7 just pledged to break China’s rare earth grip, there’s a lot of work to do
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The U.S. and six of its allies are tackling their dependence on China and its effective chokehold on rare earth minerals.
Key facts
- If China’s export controls were “fully implemented,” up to $6.5 trillion of economic activity outside China could be at risk annually, an 2026 International Energy Agency report found
- It’s definitely a bold target,” said Cirba Solutions CEO David Klanecky, an expert with more than 30 years of experience in critical minerals
- The UN’s critical minerals report found that China has issued 16 trade restrictions on those critical energy transition materials since 2020, cutting off the supply to the United States and some
- Another company, MP Materials, has rare earths processing facilities in Fort Worth, Texas and Mountain Pass, California
Summary
Issued by the G7 in a joint statement, the pledge looks to reduce the countries’ dependence on China for the raw materials behind military technology. “It’s definitely a bold target,” said Cirba Solutions CEO David Klanecky, an expert with more than 30 years of experience in critical minerals. The urgency stems from the fact that China is set to reinstate its initially postponed export controls on rare earths critical to defense systems on Nov. 10, put in place in a yearlong truce with the Trump administration after his worldwide reciprocal tariffs set off a global trade war. G7 summit participants Japan, the EU and the U.S. account for over half of global rare earth magnet imports, with China acting as the main supplier, according to a United Nations critical minerals trade report published in June.