The United States will urge its allies to accelerate efforts to reduce dependence on China for rare earths and other critical minerals, as U.S. Treasury Secretary Scott Bessent hosts senior finance officials from the Group of Seven and other countries on Monday, according to a senior U.S. official.

Bessent is expected to call on participating nations to move beyond long-term strategies and take concrete, near-term steps to diversify supply chains for minerals essential to advanced manufacturing, clean energy technologies, and defence systems. China currently dominates global processing and supply of many rare earth elements, giving Beijing significant leverage in key industries.

U.S. officials have repeatedly warned that heavy reliance on China for critical minerals poses economic and national security risks, particularly as geopolitical tensions rise. Washington has pushed for increased investment in domestic mining and processing, as well as closer cooperation with allies to develop alternative supply sources.

The issue has gained urgency following China’s recent export controls on certain critical minerals, which have heightened concerns in Western capitals about supply disruptions. G7 countries have pledged to strengthen supply chain resilience, but U.S. officials say progress has been uneven and too slow.

The meeting is expected to focus on financing tools, public-private partnerships and coordinated policy measures to support new mining, refining and recycling projects outside China. Officials say closer alignment among advanced economies is essential to ensure stable and secure access to minerals vital for future economic growth and security.

Analysts note that reducing reliance on China will be a complex and costly process, requiring years of investment and regulatory reform. However, Washington argues that delaying action would increase vulnerability to geopolitical shocks and economic coercion.