G7 Nations Plot to Reduce China REE Reliance with Trade Actions
G7 nations are exploring measures to lessen their reliance on China for critical rare earth elements (REEs). The group is considering price caps, tariffs, and other trade actions to boost domestic production and attract investment in REEs.
Following China's introduction of export controls on hard-to-mine metallic elements and related magnets in April 2025, G7 nations are looking to diversify their supply chain. Companies like Lynas Corporation and MP Materials are positioned to increase REE production for G7 nations, as highlighted in the report 'Trump and the Secret Weapon' by Golo Thomas Kirchhoff and an unnamed co-author.
The US is currently engaged in discussions with the G7 and EU about broader trade actions regarding REEs. One proposed measure is a tax on Chinese REE exports, with the rate potentially tied to China's share in non-renewable energy production.
G7 nations are actively seeking ways to reduce their dependence on Chinese REEs. By encouraging domestic production and considering trade actions, they aim to secure a stable and diverse supply of these crucial elements.
