G7 and Industry Weigh Price Supports and Tariffs to Counter China’s Critical Minerals Dominance

Negotiations for a Western trading bloc to regulate prices of critical minerals are stumbling over concerns about the plan’s cost and governance, diplomatic sources told Reuters. S. Vice President JD Vance in February during the Critical Minerals Ministerial at the State Department in Washington.

The trading bloc aims to help Western countries reduce dependence on China, which became the world’s largest minerals producer by operating at a loss and dampening prices for cobalt, lithium, nickel and other minerals. Artificially low prices have made it harder for Western mining rivals to compete, inhibiting new development and driving some companies out of business.

The trade bloc would explore price supports, market standards, subsidies, or guaranteed purchases to encourage production across multiple countries.

At present, many niche minerals critical to tech and defense are traded over-the-counter with minimal transparency and linked to Chinese prices, which de facto set the global market due to China’s dominant production.