Canada helms G7 talks on critical mineral alliance after U.S.-China détente

By Canadian Press on October 30, 2025.

TORONTO — Canada is heading up talks in Toronto to establish a G7 critical mineral production alliance in what’s widely seen as a bid to check China’s reign over a supply chain key to everything from wind turbines to fighter jets.

Federal energy minister Tim Hodgson says the critical minerals pact will look at countering market manipulation and price volatility in the sector.

Pressure has been mounting on countries to diversify their supply of critical minerals as China has used its dominant position to tighten exports on rare earth minerals often used in magnets for electric vehicles, cellphones, advanced radar and a range of other products.

Just hours before the G7 ministerial talks in Toronto, China announced it had agreed to pause those export restrictions for one year as part of a deal with the United States.

University of Ottawa professor Wolfgang Alschner says that deal helps buy the G7 some time, easing what was “an immediate national security crisis into a high priority policy problem.”

But he says it changes nothing about the fundamental issues with China’s dominance.

“In a time where geopolitical tensions are rising and where one country can essentially shut off industrial production and even defence protection to the rest of the world, that’s a huge problem,” said Alschner, who studies Canada’s critical mineral strategy.

The International Energy Agency says China accounted for about 60 per cent of global rare earth mining last year, and 91 per cent of global refining production.

The talks on Thursday and Friday in Toronto between G7 environment and energy ministers are also expected to touch on energy security and continued support for Ukraine.

This report by The Canadian Press was first published Oct. 30, 2025.

Jordan Omstead, The Canadian Press