Six days after the G7 unveiled new critical minerals targets, Australia’s rare earths sector is positioning for a potential surge in global demand as governments and manufacturers scramble to secure non-China supply chains.
The agreement commits member nations to ensuring at least 40 per cent of rare earths and permanent magnets are sourced from producers outside China by 2030, with a longer-term goal of reaching 50 per cent as soon as possible.
The commitment forms part of a broader strategy to strengthen critical minerals supply chains and reduce reliance on any single supplier. As a G7 partner country, Australia has backed the initiative and is expected to play a key role in helping Western economies diversify supply.
Industry participants say the targets could accelerate investment decisions across Australia’s rare earths sector.
“G7 manufacturers are going to need a lot of non-China projects to get off the ground in order for those manufacturers to meet those binding targets,” Australian Rare Earths chairman Angus Barker told the Australian Financial Review. “Which means the manufacturing and defence offtakers will now be forming a long queue outside the door of every rare earths project developer who can deliver before 2030.
“There aren’t many of them.”
The G7 also committed to establishing harmonised and interoperable mechanisms for critical minerals markets, beginning with lithium and nickel before expanding to additional commodities, particularly rare earth elements.
“We are committed to working towards establishing harmonised, interoperable mechanisms …. This would start with two pilot critical minerals – lithium and nickel – and aim to avoid undermining competitiveness or imposing excessive cost burdens,” G7 leaders said in a joint statement.
The announcement follows a new agreement between Australia and United Kingdom to strengthen cooperation on critical minerals supply chains, including strategic reserves, financing, research and defence applications.
With governments increasingly focused on supply security and industrial resilience, Australia’s established rare earths producers and emerging developers appear well placed to benefit from the growing push to build alternative supply chains outside China.
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