TORONTO: In a major move to reduce dependency on China’s control over critical minerals, energy ministers from the Group of Seven (G7) nations gathered in Canada on Thursday to launch a new “Critical Minerals Production Alliance.” The initiative aims to secure transparent, sustainable, and democratic supply chains for vital resources that fuel modern technologies.
The two day meeting in Toronto began just hours after U.S. President Donald Trump and Chinese President Xi Jinping signed a one year deal allowing continued Chinese exports of rare earth minerals. German Minister for Economic Affairs and Energy Katherina Reiche welcomed the deal as “a good sign” but stressed that it should not slow global efforts to diversify supply chains. “We need diversification of our import routes on raw materials,” she emphasized.
With China holding an overwhelming dominance in rare earth refining and processing, the G7 has grown increasingly alarmed at the potential risks to economic stability and national security. Earlier this year, G7 leaders endorsed a “Critical Minerals Action Plan” during their summit in western Canada to promote cooperation in securing access to key resources used in solar panels, smartphones, and defense technologies.
Canada’s Energy Minister Tim Hodgson said the new alliance will help mobilize private investments and strengthen collaboration among member nations Britain, Canada, France, Germany, Italy, Japan, and the United States to expand critical mineral production outside of China’s influence.
Experts say this step marks a pivotal shift in the global energy and technology supply chain. Tae-Yoon Kim, head of the International Energy Agency’s critical minerals division, called the Toronto talks “a major opportunity to start shifting market power.”
For decades, critics argue, China has distorted global trade by subsidizing industries, overproducing materials, and manipulating supply through state-backed companies. Abigail Hunter, executive director of the Center for Critical Minerals Strategy, noted that Beijing’s practices have “undermined fair trade and challenged the principles of free markets.”
The G7’s new alliance reflects a growing determination among Western powers to protect their economies from resource dependency and ensure stable access to the minerals driving the world’s green and digital transition.
