FX.co ★ G7 to Launch Critical Minerals Alliance to Counter China

The Group of Seven (G-7) nations are poised to unveil a strategic alliance focused on the production of critical minerals, aimed at challenging China's predominant role in the field, according to Bloomberg News. This initiative is set to be revealed during the energy ministers’ meeting in Toronto on Friday, evolving from the action plan agreed upon at the G-7 leaders’ summit held in June. As stated by officials, this alliance is intended to counter what the G-7 perceives as China's manipulation of the market, which includes tactics such as oversupplying to devalue Western projects and instituting export restrictions. Central components of the alliance encompass offtake agreements, where buyers agree to purchase a specified percentage of mining output at predetermined prices, as well as the establishment of price floors and stockpiling strategies. The partnership will cover a range of critical minerals and involve companies across the G-7 nations, with Canada anticipating economic benefits, courtesy of its substantial mineral reserves.