The G7 summit held in France announced the formation of a ‘Critical Minerals Alliance’ aimed at strengthening the supply of raw materials to reduce dependency on China. A proposal to implement an ‘industrial quota system’ in defense materials and military industries was also presented, challenging China’s dominant export position. Western countries have introduced approximately 195 new projects worth around $7.4 billion for mineral extraction and processing. June 18, Kathmandu.
At this year’s G7 summit in Évian-les-Bains, France, discussions covered traditional topics as well as issues like the Russia-Ukraine war. However, the primary agenda focused on strategies to decrease economic dependence on China. Member nations announced the creation of the ‘Critical Minerals Alliance’ to challenge China’s control over essential raw material supplies such as lithium, nickel, and rare earth elements, aiming to diversify supply chains.
In a joint statement released on Wednesday, although China was not explicitly named, the G7 countries committed to reducing reliance on any single supplier. According to the statement, dependence on a single supplier for rare earth elements and permanent magnets is targeted to be reduced below 60% by 2030, with an ultimate goal of reaching 50% as soon as possible.
