G-20 Urges Protection Of Critical Minerals Supply Chain From Trade Wars: Report

The Group of 20, or the G-20, has reportedly urged safeguarding critical minerals from unilateral trade restrictions, after China imposed export restrictions earlier this year, primarily due to a tariff-related fallout with the United States.

“We seek to ensure that the value chain of critical minerals can better withstand disruptions whether due to geopolitical tensions, unilateral trade measures inconsistent with WTO Rules, pandemics, or natural disasters and that more producer countries can participate in and benefit from value chains,” stated a proposed draft document seen by Bloomberg News.

Critical minerals are essential in the development of key products, including semiconductors, energy equipment, and defense systems. The trade war between the world’s two largest economies put a significant strain on the critical metals supply chain after China paused exports earlier this year. The country currently controls more than 90% of the world’s refined rare earth supply.

However, late last month, Beijing and Washington reached a deal allowing rare earth exports to continue for at least another year.

In response to long-term supply concerns, the U.S. government has been intensifying efforts to build a stronger domestic minerals industry. It has invested in companies including Lithium Americas, MP Materials, Critical Metals, and Trilogy Metals, and is also in discussions with several other firms about similar arrangements.

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