G7 leaders agreed on Wednesday to introduce a 60% limit on imports of critical raw materials including rare earths, to reduce the risk of being too dependent on countries such as China.
According to a joint statement issued from the summit of leading democratic economies in France, the group said: "We aim to significantly reduce our dependencies on a single supplier outside the G7 and partner countries for rare earths and permanent magnets to under 60% by 2030 and continuing to decrease further over time, with an ambition to reach 50% as soon as possible."
China, which dominates the global market for many of these materials, was not explicitly named in the statement.
Rare earths and high-performance magnets are essential for industries including manufacturing, advanced technology and defence. They are used in products such as smartphones and television screens, as well as in electric motors, semiconductors and wind turbines.
China tightens export limits
China introduced export limits in April 2025, a move widely seen as retaliation for tariff policies imposed by US President Donald Trump, which had a significant impact on Chinese exports.
Beijing has said the restrictions are justified because these materials are “dual-use” goods, meaning they can have both civilian and military applications.
There are 17 elements classified as rare earths based on their chemical properties. Despite the name, they are not necessarily scarce. The challenge lies in finding economically viable concentrations and extracting them efficiently.
China: Mining specialist
China is a leading producer of rare earths and has developed a dominant position in global supply chains. Other producers include Brazil, India and Australia.
The European Union already has legislation on critical raw materials, identifying those essential for green and digital technologies as well as aerospace and defence.
Under this framework, the EU aims to ensure that by 2030 it does not source more than 65% of any strategic raw material from a single non-EU country at any stage of processing.
EU officials indicated that the bloc is unlikely to need to amend its rules, as the G7 targets cover a narrower set of materials than the EU legislation. Furthermore, the G7 commitments are non-binding.
