US Hosts G7 and Allies to Diversify Critical Minerals

U.S. Treasury Secretary Scott Bessent hosted a high-level Finance Ministerial on Securing Critical Minerals Supply Chains in Washington on January 12, 2026. The meeting brought together finance and cabinet ministers from G7 nations, the European Union, Australia, India, South Korea, and Mexico to coordinate a reduction in dependence on China for rare earths and other critical minerals like lithium and cobalt.

The diplomatic push follows reports that China restricted rare earth exports to Japanese companies and banned dual-use items for the Japanese military. While Bessent noted that China continues to fulfill commitments to ship minerals to U.S. firms, he advocated for "prudent derisking over decoupling" to remedy sector deficiencies. Participating nations discussed implementing price floors for rare earths, tax incentives, and new supply partnerships. Germany's Finance Minister Lars Klingbeil cautioned against forming an anti-China coalition, urging Europe to prioritize its own recycling and development.

Key partners emphasized their strategic roles: Canada's François-Philippe Champagne offered to help Europe move away from Chinese dependence, while Australia's Jim Chalmers promoted the Australian Critical Minerals Strategic Reserve. India's Ashwini Vaishnaw described secure supply chains as vital for the electronics sector and the "Viksit Bharat" goal. This effort coincided with India's announcement of a Rs 7,280 crore scheme for domestic rare earth permanent magnet manufacturing and U.S. Ambassador-designate Sergio Gor's announcement that India will join the PaxSilica semiconductor alliance next month.