Three major allies are charting their own course to secure essential minerals, moving away from a trade partnership proposed by the United States to counter China’s overwhelming control of rare earth supplies.
Senior government representatives from Japan, France, and Canada revealed they are developing independent strategies to obtain critical minerals and decrease dependence on Chinese sources, according to Reuters reporting from Toronto.
The alternative approaches being considered include establishing import limits on specific rare earth materials, providing financial support to mining operations that can diversify mineral supply chains, and creating a purchasing alliance – a Canadian-initiated G7 project designed to establish dependable mineral sources beyond China’s reach and challenge that nation’s stranglehold on these essential materials.
Last month, U.S. Vice President JD Vance announced America’s intention to organize allies into a special trade partnership focused on critical minerals. However, four weeks following that declaration, several countries are pursuing different strategies, reflecting Canadian Prime Minister Mark Carney’s call for mid-sized nations to unite as President Donald Trump has strained relationships with traditional partners.
The White House has not provided a response to requests for comment.
Hiroyuki Hatada, who leads the Americas Division at Japan’s Ministry of Economy, Trade and Industry, spoke at a Toronto mining conference about potential solutions. He suggested that providing subsidies to projects throughout the Western Hemisphere could make them economically viable competitors to Chinese operations.
These rare earth elements are challenging to extract and are essential components in mobile devices, electric vehicles, and advanced military equipment. China maintains control over more than 90% of these materials and implemented export restrictions last year as a response to American tariffs.
Japan has encouraged its manufacturing sectors to establish business agreements with rare earth projects that the country has supported financially alongside partners including France, Australia, and Canada.
“They might not be the cheapest, but now that the industry understands the balance of risk and price, it is not a bad idea to use those projects,” Hatada explained.
Benjamin Gallezot, France’s interministerial representative for strategic mineral and metal supplies, informed Reuters that the American proposal represents one method of diversification, “but there are other ways to do it.”
“There will not be a general policy, that is our view. Second, it has to be built and discussed between a large number of countries, not only the G7, but G7 plus,” he stated.
France has proposed implementing a quota arrangement limiting how much metal companies can import, along with requirements for businesses in specific industries to diversify their supply sources. Gallezot also indicated France backs Canada’s buyers’ alliance concept and will advance this idea as France assumes the G7 leadership role this year.
Over the past two years, G7 nations have introduced various measures to address China’s rare earth market dominance. Western governments express concern that critical industries, including defense, have become overly dependent on inexpensive rare earth materials from China.
Canada has recently finalized 30 new agreements with 12 nations for proposed investments totaling C$12.6 billion ($9.22 billion) in mining and mining technology, bringing total investments to approximately C$18 billion since October. On March 4, Australia announced it would participate in Canada’s G7 critical minerals production partnership.
“Canada believes that the best way to address the issue of concentrated supply of critical minerals is through a production alliance or a buyers’ club,” Energy and Mining Minister Tim Hodgson told Reuters on Tuesday.
