US Invites India and Australia to G7 Finance Talks on Critical Minerals Supply Chains

US Seeks India–Australia Participation in G7 Talks on Critical Minerals Security

The United States has invited India and Australia to join an upcoming meeting of G7 finance ministers dedicated to strengthening global critical minerals supply chains. Scheduled to be held in Washington, the discussions reflect mounting concern among advanced economies over excessive reliance on China for minerals that underpin defence systems, high-end technology, and the clean energy transition.

US Push for a Focused Critical Minerals Framework

US Treasury Secretary Scott Bessent stated that the proposed meeting would bring together finance ministers from the Group of Seven , along with select strategic partners. He noted that the idea of a dedicated critical minerals dialogue had been under consideration since the last G7 leaders’ summit, with finance ministers already holding a virtual discussion on the issue in December.

The Washington meeting is expected to move beyond consultations towards coordinated policy measures, including investment cooperation, risk-sharing mechanisms, and supply chain resilience planning.

Why India and Australia Matter

India has been invited to participate, although official confirmation from New Delhi was awaited at the time of reporting. Australia’s inclusion is seen as particularly significant due to its abundant reserves of lithium, rare earth elements, and other strategic minerals.

Canberra recently deepened cooperation with Washington through an agreement aimed at countering China’s dominance in critical minerals. The arrangement outlines an $8.5 billion pipeline of projects and draws upon Australia’s proposed strategic reserves of rare earths and lithium. The initiative has also attracted interest from Europe, Japan, South Korea, and Singapore, signalling the emergence of a broader alignment.

China’s Dominance and Supply Chain Vulnerabilities

China currently controls a commanding share of the global refining and processing of critical minerals. According to the International Energy Agency , China processes between 47 per cent and 87 per cent of key materials such as copper, lithium, cobalt, graphite, and rare earth elements.

These minerals are indispensable for semiconductors, electric vehicle batteries, renewable energy infrastructure, and advanced military systems. Recent reports of export curbs on rare earths and magnets to Japanese firms have heightened geopolitical anxiety, reinforcing Western efforts to reduce exposure to supply disruptions.

Broader Implications for Global Supply Chains

The Washington meeting follows a G7 action plan agreed last year to secure critical mineral supply chains and improve economic resilience. As China tightens export controls, the outreach to countries like India and Australia underscores a strategy of coalition-building among resource-rich and manufacturing-capable partners.

Outcomes from the talks are expected to influence future collaboration on mineral exploration, processing capacity, stockpiling strategies, and alternative sourcing—key pillars for sustaining the global energy transition and technological competitiveness.

Key Exam-Focused Points

• G7 members include the US, UK, Japan, France, Germany, Italy, Canada, and the EU.

• Critical minerals are essential for clean energy, defence, and high-technology sectors.

• China dominates global refining of rare earths and battery-related minerals.

• Supply chain diversification has become a major geopolitical and economic priority.