The US Treasury Secretary Scott Bessent It was announced that Australia and India had been invited to participate in a G7 finance ministers' meeting on critical minerals, scheduled for Monday in Washington. This meeting aims to strengthen international cooperation in the face of growing vulnerabilities in supply chains.
According to Bessent, this specific meeting had been requested since last summer's G7 leaders' summit, following initial virtual consultations held in December. While Australia has confirmed its participation, India has also been invited, though it is not yet certain whether it has accepted the invitation. Other countries may also be involved in the discussions.
The G7, comprising the United States, the United Kingdom, Japan, France, Germany, Italy, Canada, and the European Union, is seeking to reduce its dependence on China for the supply of rare earths and other strategic minerals. Last June, the group adopted an action plan aimed at securing these supply chains, which are essential to the functioning of advanced economies.
Australia plays a central role in this strategy. In October, Canberra signed an agreement with Washington to counter Chinese dominance in the critical minerals sector, outlining a portfolio of projects valued at $8,5 billion. This initiative relies in particular on an Australian strategic reserve intended to supply key resources such as lithium and rare earth elements, which are considered especially vulnerable to supply disruptions.
China remains the dominant player in the sector today, refining between 47% and 87% of several critical minerals, according to the International Energy Agency. These resources are essential to many strategic areas, ranging from defense technologies and semiconductors to renewable energy and batteries.
The meeting comes amid heightened tensions following reports of Chinese restrictions on exports of rare earth elements and dual-use products to certain Japanese companies. Despite this, Bessent indicated that Beijing has so far honored its commitments regarding deliveries of critical minerals to American companies, while emphasizing the need for Western countries to sustainably diversify their supply sources.
