G7 discusses permanent secretariat for critical minerals coordination

LONDON: The Group of Seven countries are discussing the creation of a permanent secretariat to help ensure efforts to strengthen supplies of critical minerals continue beyond the bloc’s rotating presidencies, according to five sources familiar with the talks.

The discussions come as developed economies seek to reduce dependence on China, which has a dominant position in the production of minerals used in defence, manufacturing and the energy transition. Last month, the United States and the European Union agreed to step up coordination on critical minerals including lithium, cobalt and rare earths.

Two of the sources said European governments had opposed the idea of a single shared stockpile, preferring instead that each country retain control over its own reserves. The same sources said European governments also do not want the United States to lead the initiative because of concerns that access to critical minerals could be limited during a crisis.

Possible location and timing

The sources said the proposed secretariat could be based at either the International Energy Agency or the Organisation for Economic Cooperation and Development, both of which are headquartered in Paris.

They said it remains unclear when such a body could be formally established. However, it could play a role in implementing any decisions on critical raw materials taken at the G7 leaders’ meeting in June, which may include stockpiling measures.

A spokesperson for France’s finance ministry declined to comment on the matter.

France, which currently holds the G7’s rotating presidency, convened an online G7 meeting for Thursday to discuss ways to reduce China’s grip on critical materials. Finance Minister Roland Lescure told reporters the meeting was intended to prepare for a mid-June summit of G7 leaders in the French town of Evian.

IEA workshop in Brussels

While it is not known what proposals the OECD may put forward, two of the sources said the IEA is already working on plans related to coordinating stockpiling and production of critical minerals.

According to documents seen by the news agency and confirmed by the IEA, a workshop on the agency’s plans was scheduled for Tuesday in Brussels.

"The IEA is holding a workshop in Brussels with government and industry participants to discuss mineral stockpiling," a spokesperson said, adding that the meeting was intended to examine technical aspects and better understand how such systems could be designed effectively.

As of April 20, governments registered to attend the workshop included the United States, Germany, France, Canada, Italy and Spain. The European Commission, the EU’s executive arm, was also registered to participate.

Documents sent to participants showed that companies expected to attend included General Motors, Glencore, Leonardo and Umicore.