The Group of Seven (G7) nations are currently in discussions to establish a permanent secretariat aimed at ensuring the continuity of initiatives designed to enhance the supply of critical minerals. This development comes from insights shared by five sources acquainted with the ongoing conversations. The proposed body is intended to persist beyond the rotating presidencies of the G7, reflecting a collective effort to address the strategic needs of member countries.

There is a growing urgency among developed nations to reduce their dependence on China, which is the predominant producer of essential minerals required for defence, energy transition, and manufacturing. In response to this situation, the United States and the European Union have recently decided to strengthen their collaboration on critical minerals, such as lithium, cobalt, and rare earth elements.

However, according to two of the sources, European nations have shown resistance to the idea of a unified stockpile of these minerals. They prefer allowing individual control over their reserves, wary of the implications of a shared stockpile, particularly during times of crisis. This apprehension has shifted the focus towards secure management within national confines rather than a joint initiative.

Potential Location for the Secretariat

The sources, speaking on the condition of anonymity due to the sensitivity of the matter, indicated that the proposed secretariat could potentially be located at the International Energy Agency (IEA) or the Organisation for Economic Co-operation and Development (OECD), both headquartered in Paris. While the timeline for establishing this body remains uncertain, its inception could facilitate the implementation of decisions regarding critical raw materials that are likely to emerge from the G7 leaders’ meeting scheduled for June.

France, which is currently holding the G7 presidency, has convened an online meeting for Thursday. This assembly aims to strategise on how to diminish China’s grip on critical minerals, preparing the ground for the mid-June summit set to occur in Evian. Finance Minister Roland Lescure addressed reporters on the significance of this meeting in shaping future discussions.

The IEA has yet to provide comments on the ongoing discussions within the G7 regarding the proposed secretariat. Meanwhile, the OECD has not been responsive to inquiries for clarification on its potential contributions to this initiative. Nevertheless, discussions within the IEA are reported to be underway in regard to aligning efforts on the stockpiling and production of critical minerals.

Workshop on Mineral Stockpiling

To facilitate these plans, the IEA has organised a workshop in Brussels to engage with both governmental and industry representatives concerning the stockpiling of critical minerals. This event, described in documents reviewed by Reuters, is designed to explore technical details and gather insights from the industry to develop effective stockpiling systems.

Scheduled for a Tuesday session, attendees from several countries, including the United States, Germany, France, Canada, Italy, and Spain, have registered for participation. The European Commission, the executive body of the EU, is also on the list of attendees. Prominent companies such as General Motors, Glencore, Leonardo, and Umicore are expected to join the discussions, as per the documents shared with participants.

This initiative highlights the G7 nations’ commitment to fortifying their resources against potential vulnerabilities in supply chains and aims to ensure sustainable access to critical minerals essential for technological advancement and energy transformation.

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