G7 Launches Action Plan to Secure Critical Minerals Supply

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At the G7 Summit in Kananaskis in June 2025, leaders from the world’s most industrialized nations launched a critical minerals action plan aimed at securing resilient, transparent, and ethical supply chains. This move follows increasing geopolitical tensions and recent disruptions that have exposed vulnerabilities in sourcing essential materials used in everything from electric vehicles to semiconductors.

China’s hold on critical minerals is now a central concern. With up to 90 percent control over rare-earth refining and significant shares in lithium, cobalt, graphite, and battery-grade materials, the global economy remains uncomfortably reliant on a single supplier. These materials are foundational to modern infrastructure, clean energy systems, defense capabilities, and digital technologies. For G7 members, reducing this concentration of supply has become a strategic imperative.

The five pillars of the G7 action plan to reshape mineral markets

The G7 strategy is built around five core principles. At its center is a commitment to embed environmental, social, and governance standards across the mineral value chain. A roadmap due by the end of 2025 will define mandatory criteria covering labor practices, anti-corruption protocols, pollution thresholds, and traceability systems. The aim is to elevate transparency and ensure pricing reflects the full cost of ethical production.

Investment mobilization is the second pillar. G7 governments aim to unlock capital to address bottlenecks in permitting, processing, and project finance. This includes aligning with export credit agencies, development banks, and the Minerals Security Partnership, and directing funding into projects that meet high ESG standards.

Third, the plan emphasizes innovation in recycling, processing, and material substitution. Advances in tailings reuse, circular economy systems, and synthetic alternatives are expected to ease reliance on primary extraction. A Chicago summit in September 2025 will convene public and private sector leaders to accelerate these developments.

Fourth, the plan aims to improve coordination and forecasting. This involves building systems to detect future supply shocks, whether driven by market disruption or export restrictions. A framework for joint response is currently under development.

Finally, diversification and trusted sourcing round out the strategy. The plan encourages both domestic extraction and processing and partnerships with aligned countries. It reflects elements of the EU’s Critical Raw Materials Act, which mandates that by 2030, no more than 65 percent of any critical mineral can be sourced from a single non-EU country.

The scale of investment needed to meet future demand

The urgency of the G7’s efforts is supported by the scale of projected demand. The International Energy Agency estimates that achieving climate and technology goals by 2040 will require between 500 billion and 2 trillion dollars in new investment. Much of this will go toward expanding capacity in graphite, lithium, cobalt, and rare earths.

While G7 countries have so far committed around 13 billion dollars, this represents only a fraction of what is required. Some national projects signal growing traction. U.S. Rare Earth is planning a neodymium magnet plant in Oklahoma with projected annual revenues of 800 million dollars. Chevron has entered the lithium market through brine extraction projects in Texas and Arkansas. Novonix is building synthetic graphite capacity in Tennessee with federal support.

China’s mineral leverage and why diversification matters

China’s dominance is rooted in decades of subsidization and industrial planning. It currently refines 92 percent of battery-grade graphite and processes more than 60 percent of global lithium and cobalt output. Similar trends exist in rare earths, where China controls key intellectual property and most downstream processing.

Nickel and cobalt face similar concentration. Indonesia supplies over 60 percent of refined nickel, and this is projected to grow. The Democratic Republic of the Congo, already responsible for 63 percent of global cobalt, could surpass 70 percent by 2025.

For G7 nations, diversifying supply sources is a way to mitigate strategic and commercial risks. Aligning with partners such as Australia, Canada, and South Korea is central to this effort, as is expanding domestic capabilities.

Innovation, recycling, and the new mineral economy

Beyond mining, the future of critical minerals depends on the ability to reuse, substitute, and process materials more efficiently. The G7 plan supports closed-loop systems and research into alternatives that reduce reliance on virgin extraction.

Battery recycling and synthetic alternatives are gaining attention, but capacity is still insufficient. The Chicago summit later this year aims to push technological development and cross-sector collaboration.

Embedding ESG criteria across mineral supply chains provides a means to establish credibility and social license. From labor rights to pollution control and local engagement, standards are intended to differentiate trusted suppliers from those using cost-cutting or opaque practices.

Canada has emphasized this in its approach. With Indigenous partnerships, clean-powered mineral processing, and a clear regulatory framework, it presents a model for responsible development.

The action plan sets out a broad, coordinated framework for reconfiguring mineral supply systems. Success will require long-term commitment, aligned investments, and policy cohesion across borders.

Sources:

• International Energy Agency – Critical Minerals Report
• Reuters – G7 Summit Coverage