G7 Critical Minerals Push Targets AI and Chip Supply Chain Risk

2026-06-18 · Source: TechRepublic · Field: Business & Management — Operations & Process Management, International Business & Trade · Depth: Fundamental Awareness, short

Summary

The G7 is intensifying its focus on critical minerals to mitigate supply chain risks for AI hardware, semiconductors, and data centers, aiming to finance alternatives to China-linked sources. This initiative builds on the G7 Critical Minerals Action Plan and Critical Minerals Production Alliance, first announced at the June 2025 summit. A June 17 summit report detailed plans for closer cooperation, including stockpiling and recycling, supported by an International Energy Agency platform. China's significant control, holding an average 70% market share in refining 19 of 20 strategic minerals, has been highlighted by its export restrictions in April 2025 and broader controls on October 9, 2025, though some were suspended until November 10, 2026. Scaling this plan requires substantial financing and long-term purchase commitments, exemplified by Canada's \$6.4 billion projects and Apple's \$500 million rare earth magnet deal with MP Materials in July 2025. APAC technology manufacturers and buyers are central to both demand and project implementation.

Key takeaway

For CTOs and supply chain executives managing hardware procurement, you must proactively assess your exposure to critical mineral supply chain vulnerabilities, especially those linked to China. Diversify your sourcing strategies and explore long-term purchase agreements with non-Chinese refiners and recyclers. This mitigates risks from potential export controls and price volatility, ensuring stability for AI data centers, semiconductor manufacturing, and other essential tech infrastructure.

Key insights

G7 nations are actively pursuing diversified critical mineral supply chains to reduce reliance on China for AI and chip hardware.

Principles

• Supply chain concentration creates systemic hardware risk.
• Diversification requires long-term financial commitments.
• Regional demand hubs are key to project viability.

Method

The G7 strategy involves closer cooperation on stockpiling, recycling, and establishing an IEA-supported platform, alongside securing long-term offtake agreements and co-investments for new mines and refineries.

In practice

• Evaluate exposure to China-linked mineral supply chains.
• Seek alternative suppliers for rare earth magnets.
• Explore recycling and domestic refining partnerships.

Topics

• Critical Minerals
• Supply Chain Risk
• AI Hardware
• Semiconductor Manufacturing
• G7 Policy
• APAC Technology

Best for: VP of Engineering/Data, Investor, Policy Maker, Executive, CTO

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Editorial summary, takeaway, and curation by AIssential. Original article published by TechRepublic.