G7 leaders set 60% cap on rare-earth imports, launch minerals alliance to cut China reliance

Summit context

The G7 leaders gathered in Evian-les-Bains for their annual summit, with France pushing critical mineral supply security as a central theme. The joint declaration emerged after months of negotiations among allies shaken by Beijing's weaponisation of resource exports.

Import caps and targets

The core commitment: by 2030, no single supplier outside the G7 and partner countries should account for more than 60% of rare-earth and permanent-magnet imports. The ultimate objective is a 50% ceiling "as soon as possible." For other critical raw materials, ministers are to set concrete targets by year-end. Australia, as a G7 partner, endorsed the statement. The targets are non-binding policy goals, not legal caps.

“It was agreed in various formats to cooperate even more closely on critical raw materials.”

Alliance, platform, and IEA role

To make these goals operational, the G7 established the Critical Minerals Resilience and Production Alliance, billed as an informal coordination vehicle. A joint platform will pool data, align policies, and coordinate crisis responses, drawing on the International Energy Agency for market analysis and early warnings of supply distortions. Pilot projects for lithium and nickel will kick off harmonised mechanisms, with five additional minerals added each year thereafter.

China’s dominance and the 2025 shock

China controls around 60% of global rare-earth extraction and more than 90% of refining capacity, according to the IEA. The urgency of Western action was underscored in April 2025, when Beijing imposed sweeping export controls on permanent magnets, a move widely seen as retaliation against U.S. tariff policies. The disruptions halted production lines across the defence, automotive and clean-energy sectors, exposing the fragility of supply chains built on a single dominant processor.

“The G7 statement is an important signal of intent, but the pace of diversification will ultimately depend on whether policy support translates into investment across the midstream and downstream parts of the value chain.”

Investment push and EU context

Since January 2026, G7 members and partners have announced 195 projects with combined investments of €64 billion ($74 billion) across the critical-minerals value chain. Leaders called on development finance institutions and export credit agencies to crowd in private capital. Separately, the EU already has its Critical Raw Materials Act, which sets a 65% import cap from any single non-EU country by 2030, but officials said the G7 accord focuses on a much narrower set of materials and likely requires no legislative overhaul.