India, Australia Invited to G7 Talks on Critical Minerals

The United States has invited India and Australia to participate in a meeting of G7 finance ministers focused on securing critical minerals supply chains. The talks, hosted in Washington, come amid growing concerns among advanced economies over heavy dependence on China for minerals essential to defence, technology, and clean energy transitions.

US Push for Dedicated Critical Minerals Dialogue

US Treasury Secretary “Scott Bessent” said the meeting would bring together finance ministers of the “Group of Seven” along with select partner countries. He noted that he had been advocating a focused discussion on critical minerals since the G7 leaders’ summit last year, with finance ministers already holding a virtual meeting on the issue in December. The in-person talks aim to translate commitments into coordinated policy action.

India and Australia’s Strategic Relevance

India was invited to attend the meeting, though it was not immediately clear whether New Delhi had confirmed participation. Australia’s presence is considered pivotal given its resource base and recent alignment with Western efforts to diversify mineral supplies. Canberra signed an agreement with the United States in October to counter China’s dominance, outlining an $8.5 billion project pipeline and leveraging Australia’s proposed strategic reserve for rare earths and lithium. The initiative has since drawn interest from Europe, Japan, South Korea, and Singapore.

China’s Dominance and Rising Geopolitical Risks

China currently dominates the global refining of critical minerals, processing between 47 per cent and 87 per cent of copper, lithium, cobalt, graphite, and rare earths, according to the International Energy Agency. These materials are vital for semiconductors, batteries, renewable energy systems, and military technologies. Recent reports of export restrictions on rare earths and magnets to Japanese companies have heightened concerns, reinforcing Western efforts to reduce exposure to supply disruptions.

Imporatnt Facts for Exams

• G7 includes the US, UK, Japan, France, Germany, Italy, Canada, and the EU.
• Critical minerals are key inputs for clean energy and defence technologies.
• China dominates global refining of rare earths and battery minerals.
• Supply chain diversification is a major geopolitical priority.

Implications for Global Supply Chains

The Washington meeting follows the G7’s agreement last year on an action plan to secure mineral supply chains and strengthen economic resilience. With China imposing tighter export controls, the participation of countries like “India” and “Australia” reflects a broader coalition-building effort. The outcome of the talks is expected to shape future cooperation on investment, stockpiling, and alternative sourcing of minerals critical to the global energy transition.