France has convened an online meeting of G7 countries, scheduled for Thursday, to address strategies for reducing China's dominance in the critical minerals market, according to Finance Minister Roland Lescure. This meeting, involving relevant ministers, is intended as a preparatory step for the mid-June G7 leaders' summit in Evian, France [1]. Lescure highlighted that China has secured a significant share of the critical minerals market through substantial investment and pricing tactics that have marginalized competitors [1].
France's approach, which will inform its position at the upcoming G7 summit, focuses on rebuilding a domestic supply chain for rare earths and permanent magnets. The strategy aims to reduce reliance on China for materials essential to sectors such as electric vehicles, wind turbines, electronics, and defense [1]. The plan encompasses the entire value chain, from securing overseas mineral supplies to refining, alloy production, and magnet manufacturing within France [1].
By 2030, France targets production of rare earth oxides sufficient to meet 100% of European demand for heavy rare earths and approximately 25% of the demand for light rare earths, along with alloys covering around 10% of European needs [1]. To enhance supply security, the French government will ease access to guarantees for strategic projects, extend and simplify tax credits for green industrial investments until 2028, and allocate additional funding through an existing long-term investment program and a dedicated metals fund [1]. Additionally, France plans to engage with international traders to secure critical minerals, potentially offering state-backed project finance guarantees [1].
CONCLUSION
France is spearheading a G7 initiative to reduce dependence on China for critical minerals, with ambitious domestic production targets and supportive policy measures. The move signals significant market implications for the global supply chain of rare earths and related industries, as G7 nations seek to diversify sources and strengthen supply security.