'G7 Countries Considering Price Floors For Rare Earth Production To Counter China; G7 Discussed Imposing Taxes On China's Rare Earth Exports, No Decision Taken, Sources Say' - Reuters Exclusive

• G7 technical teams met in Chicago in September
• Form of carbon tax on China being considered, sources say
• China introduced rare earth export controls in April
• European firms struggling to secure supplies

BRUSSELS/TORONTO, Sept 23 (Reuters) - Group of Seven (G7) members and the European Union are considering price floors to promote rare earth production, as well as taxes on some Chinese exports to incentivise investment, four sources with knowledge of the discussions told Reuters.

Rare earths are difficult-to-extract metallic elements critical to the manufacture of products including cell phones, cars and high-tech weapons.

China, the world's leading producer of rare earths, surprised buyers in April when it introduced export controls on the materials and on related magnets, in retaliation for tariffs imposed by the United States.

After European automakers faced shutdowns, China agreed to fast-track licenses for European companies in May and "upgraded" its export mechanism to the EU in July. However, two months later European companies say rising license bottlenecks risk new losses and shutdowns.