G7 countries considering price floors for rare earth production to counter China, sources say
G7 discussed imposing taxes on China’s rare earth exports, no decision taken, sources say
Rare earth elements (REEs) are a group of 17 critical metals used in high-tech electronics, defense systems, and green energy technologies such as EV batteries and wind turbines. China dominates the sector, controlling roughly 60–70% of global mining and over 80% of refining capacity, which gives Beijing significant leverage over supply chains.
This dominance has been used before as a geopolitical tool, most notably in 2010 when China restricted exports to Japan during a dispute.
With US-China rivalry intensifying and global demand for rare earths rising, especially for the energy transition and defense applications, the issue has become a strategic priority for the West. The G7 has discussed measures to counter China’s grip, including imposing taxes on Chinese exports and considering price floors to make non-Chinese production more economically viable.
These policies are designed to reduce dependency on China, even if they raise costs, in order to secure reliable supply chains and limit Beijing’s ability to use rare earths as a geopolitical weapon
