G7 commits €64 billion to diversify critical minerals supply, boosting Australia’s rare‑earth industry

At the G7 summit in Évian, France, leaders pledged €64 billion to cut dependence on non‑G7 sources of rare earths and permanent magnets, aiming to reduce any single supplier’s share to below 60 % by 2030. A new coordination platform, working with the International Energy Agency, will monitor markets and flag disruptions. The declaration targets China, which currently refines about 90 % of the world’s rare earths.

Australia, a major holder of critical mineral deposits, faces high extraction costs, energy‑intensive processing and strict environmental regulations, creating a “competitiveness loop” that keeps production uncompetitive. Professor Amir Razmjoo of Edith Cowan University noted, “The problem we face in Australia is that we are an expensive jurisdiction and extraction of rare earths and critical minerals is a dirty job.” To break the loop, Australia and the United States have announced $1.4 billion in funding for critical‑minerals supply‑chain development, with calls for government subsidies and regulatory support to enable large‑scale, low‑emission production.