New G7 commitments to reduce dependence on concentrated rare earth supply chains could accelerate investment in mining, processing and recycling projects outside China as governments and manufacturers seek to secure alternative sources of critical minerals.
In a declaration issued following the G7 summit in Evian, France, leaders committed to “significantly reduce” dependence on a single supplier for rare earths and permanent magnets to below 60% by 2030, with an ambition to lower that figure to 50% “as soon as possible”.
The declaration forms part of a broader effort by the G7 and partner countries to diversify critical mineral supply chains amid what leaders described as a “high degree of market concentration”, growing vulnerabilities and the increasing use of “arbitrary trade restrictions”.
The group said it would cooperate with partner countries to advance mining, processing and recycling projects across the critical minerals value chain and promote coordinated developments through demand aggregation and the mobilisation of public and private capital. Leaders said these efforts would support the establishment of processing and industrial capacity needed to diversify supply chains.
According to the declaration, 195 critical minerals projects announced since the start of 2026 have attracted €64bn in investment commitments, including equity participation and offtake agreements, across G7 and partner countries. The group also cited progress on a joint plan to expand rare earth and permanent magnet industrial capacity.
Industry participants said the targets could increase demand for non-Chinese rare earth projects.
Angus Barker, chairman of Australian Rare Earths, told the Australian Financial Review that G7 manufacturers would require “a lot of non-China projects to get off the ground” to meet the targets, adding that manufacturers and defence-sector customers could increasingly seek supply agreements with developers capable of entering production before 2030.
The declaration also highlighted the need for stable investment frameworks and greater market transparency to support financing decisions. G7 leaders said diversification would require the mobilisation of public and private capital, including equity investments, guarantees and offtake arrangements, to bridge investment gaps before 2030.
To support project development, the group called for greater coordination among multilateral development banks, development finance institutions and export credit agencies. Leaders also said they would continue examining mechanisms to strengthen supply chain resilience, including revenue-stabilisation measures, price-gap subsidies, joint procurement instruments, quotas and price floors.
The G7 further announced plans to establish a Critical Minerals Resilience and Production Alliance to coordinate efforts on diversification, financing, stockpiling and market transparency. Australia, which participated as a partner country, supported the declaration.
The initiative drew criticism from China. According to Reuters, Chinese Foreign Ministry spokesperson Lin Jian defended China’s export control framework and urged G7 nations to abandon what Beijing described as the rules of “small cliques”.
Australia is expected to play a significant role in meeting future demand for diversified rare earth supply, with producers including Lynas Rare Earths and a range of emerging developers seeking to expand production and processing capacity outside China. Lynas is one of the world’s largest rare earth producers outside China.
Peter Prendiville, executive director at Norfolk Capital Management, told the AFR that reducing reliance on a dominant supplier was a sensible objective, though achieving the 2030 targets would be challenging given current market conditions.
The G7 also proposed expanding the role of the International Energy Agency in monitoring critical mineral markets and initially identified nickel and lithium as priority commodities, with plans to add further minerals in coming years.
