G7 leaders on Wednesday committed to stronger collective action aimed at reducing their countries' reliance on a single external supplier for critical minerals that underpin defence systems, high-tech manufacturing and renewable energy deployment. The measures include plans to align stockpiling approaches, launch a new coordination platform and expand the role of the International Energy Agency (IEA) in market monitoring and early warning.
The joint statement set a specific concentration target: reduce dependence on any one supplier outside G7 and partner countries for rare earths and permanent magnets to below 60% by 2030, with an ultimate objective of reaching 50% "as soon as possible." Leaders framed the effort as a multiyear drive to diversify sources and strengthen resilience across mineral value chains.
Without naming any country, the statement referenced market dislocations from last year when export curbs on permanent magnets disrupted industries, illustrating risks from heavy concentration of supply. In response, G7 members said they will pursue "harmonized, interoperable mechanisms" that begin with two pilot critical minerals - lithium and nickel - and will be structured to "aim to avoid undermining competitiveness or imposing excessive cost burdens."
According to the leaders, those initial mechanisms will be designed to scale: the plan foresees expanding to five additional minerals each year, with an emphasis on rare earth elements. The G7 also agreed to establish a platform to coordinate policy, share data and manage crisis responses. The platform is intended to draw on the IEA's analysis and to use the agency for "early warnings of market distortions."
Leaders acknowledged the practical challenge of building end-to-end supply chains from mining through processing and on to final products - a process that will require significant capital. They called on G7 development finance institutions and export credit agencies to collaborate alongside the private sector to support projects and related infrastructure.
To date, countries have announced 195 projects since the start of 2026 that together represent 64 billion in committed investment, which the statement equates to $74 billion using the exchange rate $1 = 0.8627 euros. Financing measures under consideration include a range of policy tools the statement lists explicitly: "price-gap subsidies, joint procurement instruments and trade-related instruments such as quotas and price floors," including use through "plurilateral trade agreements."
The statement also noted that the United States is expected to propose legally binding agreements with Japan and the EU this month to deepen cooperation on these issues. While the document outlines a stepwise approach beginning with lithium and nickel pilots and expanding annually, it emphasizes balancing resilience goals with the need to avoid excessive costs or competitive harms.
G7 officials described the package as combining market monitoring, joint procurement and targeted public financing to accelerate the creation of resilient supply chains. The measures are presented as complementary - coordinating stockpiles, signaling risks through the IEA and mobilizing investment to fill gaps from mine to end-product.
Key points
- G7 sets targets to cut concentration for rare earths and permanent magnets to below 60% by 2030 and aims for 50% "as soon as possible." - Sectors impacted: defence, technology, renewable energy.
- Pilots for lithium and nickel will begin under harmonized, interoperable mechanisms, with plans to add five minerals per year focusing on rare earth elements.
- A new platform partnering with the IEA will coordinate policy, data sharing and crisis response and provide "early warnings of market distortions." - Markets impacted: commodity markets, downstream manufacturing.
Risks and uncertainties
- Building full supply chains from mining to finished goods requires billions in investment and long lead times; financing gaps could slow progress. - Affected sectors: mining, infrastructure finance, manufacturing.
- Policy tools under consideration such as quotas, price floors and price-gap subsidies could introduce market distortions or higher costs if not carefully calibrated. - Affected sectors: commodity markets, industrial manufacturers.
- Concentration reduction targets depend on partner commitments and the success of procurement and plurilateral arrangements, which may face negotiation and implementation challenges. - Affected sectors: international trade, supply-chain-dependent industries.