Germany’s Finance Minister Says Washington Talks Covered Rare Earth Price Floor Proposal

Finance ministers from a group of advanced economies discussed the possibility of introducing a price floor for rare earth elements, along with broader partnerships to secure strategic supplies, during meetings in Washington on Monday, according to Germany’s Finance Minister Lars Klingbeil. He emphasized that many aspects of the proposal remain unresolved.

“There are a whole series of questions that remain open and that need to be clarified in the coming weeks—not only among finance ministers, but also among foreign ministers and energy ministers,” Klingbeil said.

He noted that while discussions are still at an early stage, the issue is expected to become a central focus later this year under France’s presidency of the Group of Seven advanced economies.

The Washington meeting brought together finance ministers from the G7 as well as counterparts from Australia, Mexico, South Korea, and India. Klingbeil said a separate meeting involving foreign ministers to further address rare earth supply issues is expected to take place soon.

Price Floors for Rare Earths Under Discussion

One of the key topics was the idea of establishing minimum price levels for rare earths. Such price floors would ensure that producers outside China receive a guaranteed minimum price, even if market prices fall due to China’s dominant position and its ability to flood global markets with supply.

“This is not about working against anyone, but about strengthening cooperation among partners,” Klingbeil said.

He added that there had been no reaction from China to the discussions so far, while stressing that Germany’s approach toward China remains focused on reducing risk rather than pursuing full economic decoupling.

“The advantage of minimum prices is that the market gains clarity about expected price levels, and that we can limit the influence of countries that might attempt to manipulate prices,” Klingbeil said. At the same time, he cautioned that governments must carefully consider the longer-term consequences such price floors could have.

“The discussion has now begun, and our goal is to bring it to a swift conclusion,” he added.