G7 Rare Earth Options Urgent, Says Klingbeil
G7 countries have several options to reduce their dependence on rare earths, but they must act quickly, German Finance Minister Lars Klingbeil said on Monday.
G7 governments are working to coordinate efforts to cut reliance on China for critical minerals and rare earths. China currently dominates supply chains that support technologies such as electric vehicles, renewable energy systems and defence equipment.
Speaking during a summit of finance ministers and central bankers from G7 nations in Paris, Klingbeil said governments should focus on practical solutions rather than complaints.
“We should not fall into a tone of complaint,” Klingbeil told reporters. “Instead, we have to work on our strength.”
G7 Focuses on Supply Chain Security
Klingbeil said G7 countries must strengthen procurement strategies and identify areas where production capacity can expand. In addition, he proposed introducing recycling quotas to boost the recovery and reuse of critical raw materials, including rare earths.
The proposal would involve setting targets or requirements for recycling a minimum share of these strategic materials. Such measures could help reduce long-term dependence on overseas suppliers while supporting domestic industries.
“So the proposals are all on the table and we have no time to lose,” Klingbeil said.
China Dominates Rare Earth Supply Chains
Rare earths and critical minerals play a vital role in advanced manufacturing and clean energy technologies. These materials are essential for batteries, wind turbines, semiconductors and military systems.
As a result, Western governments have increased efforts to diversify supply chains and secure alternative sources. The issue has become more urgent amid rising geopolitical tensions and concerns over economic security.
Klingbeil stressed that G7 nations must avoid repeating past mistakes linked to energy dependence.
Conflicts Highlight Economic Vulnerabilities
According to Klingbeil, the Iran war has exposed the continued dependence of G7 economies on fossil fuels. He compared the situation with Germany’s earlier reliance on Russian gas, which became a major issue after the outbreak of the war in Ukraine.
“We have to be very careful here not to run into the next dependency, one which, to be honest, we are already in,” he said.
The comments underline growing concern among major economies about securing access to strategic resources needed for future industries and energy transitions.