G7 Leaders Unite to Protect Critical Mineral Supplies in Global Push
G7’s Strategic Push to Safeguard Critical Minerals Signals Big Opportunities for Investors
Editorial Team (ET)June 17, 2025
On June 16, 2025, in the picturesque setting of Kananaskis, Alberta, G7 leaders took a decisive step toward securing the world’s critical mineral supply, crafting a strategy to shield their economies from supply chain shocks (1). This provisional agreement, as reported by Reuters, aims to counter the growing risks posed by market disruptions, particularly China’s April 2025 export ban on rare earths and magnets, which sent ripples through industries from automakers to defense contractors. With a dash of geopolitical maneuvering and a nod to economic resilience, this move could spark significant ripples in the stock market, particularly for companies like MP Materials Corp. Let’s dive into the details of this high-stakes strategy and what it means for investors.
The G7’s draft statement, still awaiting the green light from U.S. President Donald Trump, lays out a clear plan to bolster supply chains for critical minerals like lithium, cobalt, and rare earths, which are the lifeblood of electric vehicles, computer chips, and renewable energy tech. The agreement calls for anticipating shortages, coordinating responses to deliberate market disruptions, and diversifying mining, processing, and recycling efforts. This isn’t just about keeping the lights on; it’s about reducing reliance on China, which controls nearly 90% of global rare earth refining, giving it outsized leverage over global markets (2). The urgency of this strategy became crystal clear when China’s export restrictions disrupted supplies, leaving industries scrambling.
Why does this matter? Critical minerals are the backbone of modern technology. From the batteries powering Tesla’s latest models to the chips driving AI innovations, these materials are non-negotiable. The G7’s plan to work with partners beyond its ranks signals a global push to reshape supply chains, with Canada’s vast mineral reserves and the U.S.’s growing domestic production poised to play starring roles (3). The International Energy Agency has flagged the unprecedented concentration in these markets, noting that investments of $590 billion to $2 trillion may be needed by 2040 to meet demand (4). That’s a hefty price tag, but one that could fuel growth for companies ready to step up.
