G7, EU Weigh Price Floors to Shield Rare Earth Supply

G7 members and the European Union are exploring market interventions to shore up supplies of rare earths and related metals amid growing dependence on China.
Officials discussed options including government-backed price floors, carbon-adjusted tariffs on Chinese exports, and procurement or local-content restrictions aimed at directing investment into alternative supply chains.
China imposed export controls on rare earths and magnets in April and later fast-tracked some licences for European firms, but exporters now report fresh licensing bottlenecks that risk industrial disruption.
The measures were considered in technical meetings under the G7 Critical Minerals Action Plan launched in June; talks in Chicago examined regulation of foreign investment, geographic sourcing limits, and joint purchasing or stockpiling as complementary tools.
One proposed tariff would scale with the share of non‑renewable energy used in production, effectively a carbon-intensity levy on imports. Price floors discussed could be supported by subsidies, mirroring recent U.S. incentives, and Australia is separately weighing a similar floor.
Canada has signalled interest without firm commitment, while EU officials say multiple ideas remain under review and no decisions have been taken. Policymakers aim to reduce supply-chain risk for technologies from smartphones and EVs to defence systems.