G7 negotiations have stalled over a U.S. proposal to create a Western trading bloc for critical minerals. The initiative aims to reduce reliance on China by establishing price floors for materials including graphite, tungsten, and heavy rare earths.
U.S. Vice President JD Vance first proposed the plan to counter alleged Chinese market manipulation. Disagreements center on a Pentagon-developed AI model intended to set prices for the bloc.
European allies have expressed skepticism regarding the AI model's governance, cost, and potential for excessive U.S. influence. These officials prefer a multilateral G7 framework and a price index based on actual European market transactions.
The impasse delays efforts to secure supply chains essential to the defense, energy, and technology sectors. Washington continues to pursue fast bilateral deals while European partners push for broader cooperation.