Key Points
- U.S. Treasury Secretary Scott Bessent is pushing allies to reduce their reliance on critical minerals from China.
- The meeting includes finance ministers from the G7 and other key partners like Australia, India, and South Korea.
- China dominates the global supply chain for minerals used in defense, semiconductors, and renewable energy.
- The U.S. is frustrated with the lack of urgency from its allies on this issue.
U.S. Treasury Secretary Scott Bessent is pushing a group of 12 top finance officials to take action to reduce their reliance on critical minerals from China. At a meeting on Monday, he will urge the G7 nations and other key partners to “move faster” on the issue amid China’s continued dominance of the global supply chain.
The meeting will include finance ministers from the G7, the European Union, Australia, India, South Korea, and Mexico. Together, these countries account for 60% of the world’s demand for critical minerals, which are essential for everything from defense technology and semiconductors to renewable energy and batteries.
Bessent has been frustrated with the lack of urgency from U.S. allies. He first raised the alarm at a G7 summit in June, but aside from Japan, which took action after China cut off its supplies in 2010, most countries remain heavily dependent on Beijing.
China currently refines a large share of the world’s copper, lithium, cobalt, and rare earths and has threatened to impose strict export controls.
“Urgency is the theme of the day,” a senior U.S. official said. “It’s a very big undertaking…and we really just need to move faster.”
The U.S. is already taking steps to boost domestic production and has signed agreements with countries such as Australia to counter China’s dominance. The meeting on Monday is an effort to get other countries to follow its lead.
The timing of the meeting is particularly significant, as it comes just days after reports that China has begun restricting exports of rare earths to Japan. While the U.S. says the meeting was planned well in advance, it certainly adds a new layer of urgency to the discussions.
