Japan pushes G7 to set price floors to challenge China’s rare earth control

Japan wants the Group of Seven nations to work together against China’s export limits on critical minerals. Prime Minister Sanae Takaichi proposed a price floor system to make rare earth production inside the G7 more profitable. Speaking at the G7 Evian Summit in France on June 16, Takaichi warned that China’s measures threaten supply chains. Rare earths are metals used in smartphones, electric cars, and military equipment. China currently controls most of the global supply. A price floor would set a minimum price for rare earths. This would help companies in G7 countries invest in mining and processing. Without such a guarantee, experts say, it is too expensive to compete with China. Japan has already started retrieving rare-earth-rich mud from the seabed. The goal is to reduce reliance on Chinese imports. The G7 has not yet agreed to the plan, but discussions are ongoing.