Regarding rare earths, G7 members and their allies have reached a consensus!
On January 12 local time, US Treasury Secretary Bensinger hosted a high-level ministerial meeting in Washington. Representatives from G7 member states including the US, Japan, Germany, France, the UK, Italy, Canada, as well as the EU, Australia, India, South Korea, Mexico, and others attended.
Japanese Minister of Finance Koyama directly stated that almost all participants agreed that "it is necessary to accelerate reducing reliance on China's rare earths," and they also discussed short- and medium-term policy plans.
The US statement mentioned that "ensuring the security and diversification of critical mineral supply chains, especially rare earth elements," while emphasizing the implementation of a "prudent de-risking rather than decoupling" strategy. The meeting also explored ideas such as establishing price floors and developing new supply partnerships.
Let me make a few comments: This joint action may appear impressive, but it cannot hide the real difficulties. The core issue is that the rare earths game is not simply about finding alternative resources, but a battle for the entire industry chain's voice.
Data does not lie. In 2025, China's rare earth processing capacity accounts for more than 90% globally, with a mining volume share of 62%, and it holds 58% of related patents. The refining cost is only 1/4 of that in the US.
By contrast, the G7 group has invested hundreds of billions of rupees in India to increase production but has not overcome technical bottlenecks. Australia can barely maintain the operation of its smelting plants with a 135 million AUD subsidy. The EU's new separation plant is expected to be operational by 2026 at the earliest.
More importantly, China tightened its rare earth export controls in 2025. Certain rare earth items require special approval, directly causing the price of dysprosium oxide in the European market to jump from $250-310 per kilogram to $700-1000 per kilogram.
G7 wants to break through with "price floors" and alliance cooperation, but ignores the fact that the rare earth industry chain requires a 5-10-year cycle from exploration to mass production, and there is a significant difference in the yield rate of high-end magnet materials.
In essence, this is not "de-risking" but political maneuvering against market rules. In the short term, it will only increase the cost of Western manufacturing industries. In the long run, without technological and industrial chain support, their consensus is nothing more than empty talk.
Original article: toutiao.com/article/1854188888665100/
Statement: The article represents the views of the author himself.