G7 leaders have agreed a strategy to protect and diversify critical mineral supply chains in the interest of shared national and economic security, at the group's annual summit in Canada.
The group established a Critical Minerals Action Plan, which focused on anticipating shortages of critical minerals, co-ordinating responses to deliberate market disruptions, and diversifying and onshoring mining, processing, manufacturing and recycling where possible.
The group also pledged to support mineral-rich emerging and developing countries by building local processing capacity, improving artisanal mining practices and addressing investment barriers.
G7 members agreed to develop a roadmap to promote standards-based markets for critical minerals to be completed by year end, which will establish criteria for standards-based markets in partnership with key stakeholders, with a goal of improving traceability.
"We have shared national and economic security interests, which depend on access to resilient critical minerals supply chains governed by market principles," the group said on 17 June. "We recognise that non-market policies and practices in the critical minerals sector threaten our ability to acquire essential minerals, including rare earth elements needed for magnets, which are vital for industrial production," the group added. "We will collaborate with partners beyond the G7 to swiftly protect our economic and national security."
This agreement came at a time when China has restricted much of the world's access to key critical minerals. Over the past two years, China has introduced export controls for metals including gallium, germanium, antimony, bismuth, tellurium, tungsten and rare earths, resulting in tighter supply and price spikes. Many of these metals are essential to cutting edge defence technology as well as civilian industries.
Banks urged to invest in critical minerals
G7 leaders also emphasised the urgent need for "immediate and scaled investment" to secure future supply chains, calling on lenders to increase their support for derisking projects and to mobilise private capital.
"We encourage multilateral development banks as well as private-sector lenders to make additional capital available for investment in standards-based critical minerals projects, including through innovative financing," the group said.
The G7 also committed to collaborating with partners in emerging markets and developing countries to build quality infrastructure, and working to address investment barriers for critical minerals projects.
