G7 Critical Minerals Pricing Plan Sparks US‑EU Divergence

The Trump administration has proposed a critical‑minerals pricing strategy that would use price supports, subsidies and tariffs to boost production of cobalt, lithium, nickel and other minerals needed for chips, weapons and batteries. The plan, first outlined by U.S. Vice President JD Vance, relies on a Pentagon‑developed AI pricing model and aims to reduce reliance on China, the world’s largest producer.

G7 leaders meeting in France expressed skepticism. European officials cautioned about who would pay premiums and how governance would work, while the U.S. trade representative Jamieson Greer faces push‑back from allies. Canada and France prefer a G7‑led trading bloc, whereas the United States seeks fast bilateral deals and resists a permanent multilateral secretariat.

In the European Union, mining giant Sibanye‑Stillwater’s CEO Richard Stewart said the EU is receptive but still far from imposing hard price‑floor regulations. Stewart warned that Chinese price dumping could again drive prices below viable levels and stressed the need for the EU not to “hang us out to dry” after capital commitments. The G7 agreed to align stockpiling, launch an IEA‑backed monitoring platform and cut reliance on non‑G7 rare‑earth suppliers to below 60% by 2030, targeting 50%.

The debate highlights diverging approaches between the United States and Europe on how to secure critical‑mineral supply chains while managing market impacts.