HIROSHIMA, Japan – Rich countries in the Group of Seven (G7) should work together instead of competing to build additional manufacturing capacity, access technology and source minerals vital to a green transition, a senior official said on Friday. the European manager said.
The G7 is ramping up its drive toward green technologies after Russia’s invasion of Ukraine disrupted energy supply chains that have been in place for decades. The group also wants to reduce its dependence on China, which dominates the supply chain of vital minerals.
“Despite all the geopolitical difficulties, the clean energy transition is accelerating,” European Commission President Ursula von der Leyen told a G7 leaders’ summit in the Japanese city of Hiroshima on Friday.
“Now that the G7 countries are in this race together, our competition should create additional production capacity and not harm each other,” he said.
The G7 countries seek to achieve carbon neutrality by 2050 by including wind, solar and other forms of renewable energy in their consumption mix.
The EU wants to process 40% of the critical raw materials it consumes by 2030, and significantly reduce its dependence on China. It is currently dependent on China for over 90% of essential minerals for wind power generation and batteries.
Von der Leyen said the G7 should focus on setting goals for building global clean manufacturing capacity and building more green partnerships “among you, but also with other trusted partners”.
“In cases where we have specific concerns regarding fair competition, we must find ways to address them,” he said. “I hope we can create a Critical Raw Materials Club in this G7 meeting,” he said.
Canada, a member of the G7, holds many important minerals such as lithium, cobalt and nickel that are used to make batteries for electric vehicles, and the government is trying to help producers and processors increase production.
Australia, which is not a member of the G7, has launched a series of grants to key minerals companies in the hope of spurring development of the battery chemical industry. Australian Prime Minister Anthony Albanese is attending the G7 summit as the guest of honor till Sunday.
