Core Lithium share price could be a long-term winner as critical metals steal the spotlight at G7 summit

The Core Lithium Ltd (ASX: CXO) share price has given up its early morning gains and dropped into the red.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed Friday trading for $1.13. They are currently trading for $1.087 apiece, down 3.38%.

While the Core Lithium share price isn't reacting positively today, the miner may be a long-term winner from the most recent discussions held by the seven wealthy nations that make up the G7.

What happened at the G7 summit?

Despite a looming debt default at home, United States President Joe Biden managed to make an appearance at the G7 summit, held in Hiroshima, Japan on Saturday. This was immediately followed by the Quadrilateral Security Dialogue (Quad) summit.

Prime Minister Anthony Albanese was also in attendance.

Among the pressing matters the world leaders discussed was how to secure diverse supply lines of critical clean energy metals outside of China. This is where the Core Lithium share price could enjoy a boost.

Despite the past few years of increased production outside of the Middle Kingdom, China remains the dominant supplier of most of the refined metals required to transition the world away from fossil fuels.

Australia holds the title of the world's top lithium producer and has the globe's fifth-largest lithium reserves.

This fact isn't lost on the US government, which recently signed the Climate, Critical Minerals and Clean Energy Transformation Compact with Australia, and passed the US$369 billion (AU$555 billion) Inflation Reduction Act (IRA), containing big spending on sustainable energy transformations.

That all bodes well for ASX 200 lithium stocks more broadly, and the Core Lithium share price more specifically.

And, on Saturday, Biden doubled down on the commitment (quoted by The Australian Financial Review):

We are going to establish climate and energy as the third pillar of the Australia-US alliance. This will enable the expansion and diversification of clean energy supply chains, especially as it relates to critical materials.

Biden is also seeking to have Australia added as a "domestic source" under the US Defense Production Act. This would enable new US investments in Australian lithium projects, among others.

Core Lithium share price snapshot

The Core Lithium share price is down 18% over the past 12 months.

But on the back of the recent rebound in lithium prices, the shares have gained 44% since 23 March.