The G7 and EU are exploring new measures to counter China’s dominance in rare earths, including price floors backed by subsidies and even carbon-style tariffs on Chinese exports, according to sources cited by Reuters. Technical teams met in Chicago this month to discuss how to secure supplies of the critical minerals essential for electronics, EVs, and weapons.
China, the world’s leading producer, has tightened control over rare earth exports, introducing restrictions in April. Although Beijing granted Europe some fast-track licenses, European companies continue to face bottlenecks that risk fresh shutdowns.
Options under review include tougher screening of foreign investment in critical materials to deter reliance on China, geographical sourcing restrictions in public tenders, and joint-purchasing schemes among G7 members. Canada is reportedly open to price floors, while Australia is considering similar steps. The EU is also weighing stockpiling rare earths. No decisions have yet been taken.
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Market-impact?
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Commodities: Price floors and subsidies could reshape rare earth pricing.
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Trade: Carbon-style tariffs on China discussed as part of supply security strategy.
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Europe: Automakers face renewed risk of shutdowns from export bottlenecks.
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Policy: G7 exploring stockpiles, joint-purchasing, and sourcing restrictions.
