Washington: The Group of Seven (G7) nations are moving to reduce dependency on China for critical minerals by strengthening cooperation with resource-rich countries and multilateral financial institutions, according to reports.

The decision was taken at a meeting of G7 finance ministers held in Washington, DC, which also included participation from mineral-producing countries such as Argentina, Australia, India, Indonesia, South Africa and South Korea. 

The discussions focused on securing stable and diversified supply chains for critical minerals, which are essential for clean energy technologies, electric vehicles and advanced manufacturing.

Japanese Finance Minister Satsuki Katayama said the initiative aims to create a “win-win situation” for all participating countries by ensuring stable supply networks and opening new growth opportunities for producing nations.

The meeting also saw participation from the World Bank, the Asian Development Bank and other international financial institutions, underscoring the global financial backing for supply chain diversification.

According to reports, the G7 approach differs from a US-led critical minerals strategy, focusing more on collaborative business development rather than restrictive trade frameworks.

The US proposal is understood to emphasise insulating partner countries from global market volatility through pricing mechanisms and trade-zone adjustments.

Meanwhile, India is accelerating its own efforts to strengthen domestic supply chains and reduce import dependence on critical minerals.

The government is expanding exploration of strategic minerals, promoting mining-related startups, and building a domestic value chain ecosystem to improve self-reliance in the sector.

India is also working to streamline approval processes, including forest clearances, to reduce delays in exploration projects and improve operational efficiency.

Officials have highlighted that faster regulatory approvals, improved procurement systems and better coordination between agencies will be key to sustaining momentum in the sector.

With global competition intensifying, critical minerals have become a strategic priority for energy transition, technology manufacturing and national security, prompting countries to diversify sourcing and strengthen international partnerships.

IANS