strategicmaterials

🌐 G7 Targets China’s Rare Earth Dominance 🚨

On Jan 12, 2026, finance ministers from the EU, Australia, India, South Korea, Mexico, and the G7 agreed to reduce dependence on Chinese rare earths, crucial for EV batteries & defense materials.

💡 Key Moves:
• Price Floor: Base price for mixed rare earths (~$110/kg for NdFeB) to make Western projects profitable
• Trade & Carbon Rules: Tariffs & carbon taxes targeting non-renewable Chinese supply
• Local Content Rules: Governments prioritize allied rare earths in procurement
• Alternative Supply Chains: Recycling (South Korea), new mines (Canada, US, Australia), decentralization including Malaysia & Thailand
• Short / Mid / Long-term Strategy: Labor standards → subsidies & tariffs → bypass China entirely

⚠️ Challenges:
• Germany & Japan highly dependent (~80%+) → sudden changes risky
• Building refining plants takes 5 years & billions, often 2–3x China’s cost

🇨🇳 China Responds: Foreign Ministry reiterates stable global supply chain is key, warns all parties share responsibilities.

The world is accelerating efforts to reduce reliance on China, setting up potential shifts in EV, defense, and tech supply chains.

#RareEarths #G7 #china #EV #SupplyChain #Mining #GlobalTrade #StrategicMaterials