U.S. Pushes G7 to Cut China’s Grip on Rare Minerals

- U.S. urges G7 coalition to counter China's rare minerals dominance. - Growing concerns over potential export controls and China's market grip. On January 11, 2026, Cryptopolitan reported that U.S. Treasury Secretary Scott Bessent has called for a global coalition to reduce reliance on China’s rare earth minerals. Bessent made his proposal as he prepares to meet with officials from the G7 economies, the European Union, Australia, India, South Korea, and Mexico. The Treasury Secretary stressed the need to diversify supply chains for these critical minerals, as they play a pivotal role in defense and technology. This initiative follows rising concerns over China's dominance in the industry and its threats of tighter export controls, which could severely disrupt global supply chains. Bessent highlighted frustrations over the lack of progress since the G7 summit in June 2025. The nations targeted for the coalition together account for approximately 60% of the world's demand for critical minerals, which underscores the matter's urgency. In addition, he framed the effort as a response to what he called China’s “economic coercion” and advocated for secure, diversified access to materials that are vital for cutting-edge technologies and national defense. China currently dominates the refining and processing of rare earth minerals. According to the International Energy Agency, these resources remain largely under China’s control and are critical for technologies like fighter jets, submarines, and radar systems. On October 9, 2025, Beijing imposed stricter export controls, including licensing requirements for rare earth shipments and permanent magnets. Following a bilateral trade agreement with the U.S., China lifted some restrictions; however, the suspension is temporary, leaving allied nations wary of future disruptions. In response, nations have increased efforts to decrease their reliance on China. A key development is the significant U.S.-Australia agreement announced in October 2025, which bolsters investment in Australian critical mineral projects. The partnership has over $8.5 billion in total investments, including $2.2 billion from the U.S. Export-Import Bank, and seeks to secure rare earth materials essential for defense and advanced technologies. This agreement marks a critical step toward building a more resilient and diversified global supply chain. Throughout his tenure, Secretary Bessent has emphasized the strategic importance of rare earth minerals, stressing the need for collective international action to mitigate these vulnerabilities. The proposed coalition seeks to ensure a single supplier does not jeopardize the innovation and security of allied nations, marking a significant effort to reshape the global landscape for critical minerals.