Eye on China, India and US conclude critical minerals and rare earths framework

INdia and the US on tues signed an accord for cooperation on vital minerals, including the shelter of raw supply chains and reducing vulnerability to monopolies, against the backdrop of China’s dominance in rare earths that are crucial for clean energy, advanced technology and defence.Framework on “Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths” was signed by external affairs minister S Jaishankar and US secretary of state Marco Rubio to deepen bilateral cooperation across the critical minerals supply chain, from mining and processing to recycling and related investments, the external affairs ministry said.The framework will allow India and the US to become part of international efforts to “protect sensitive supply chains from coercive market practices” and reduce collective vulnerability to single-source monopolies, the US embassy said. It will also ensure that foundational elements needed for advanced technology and energy are “available within trusted networks”.The move comes months after high technology industries in India and the US were hit by China’s curbs last year on the export of critical minerals.China has a dominant grip on materials powering the global energy transition, controlling most of the refining capacity for graphite, manganese, cobalt and lithium, creating major dependencies in electric vehicle and battery supply chains.China also refines 91% of the global rare earths needed for permanent magnets used in EVs and wind turbines.The framework, in addition to strengthening resilient and diversified supply chains, will promote collaboration in financing and effective management of critical minerals and rare earths scrap.Jaishankar described the work being done by India and the US to secure the critical minerals supply chain as very timely and critical.“This particular framework aims to deepen our cooperation across the entire critical minerals and rare earth supply chain…I think it’s a very important initiative,” he said.Also Read:Donald Trump is a ‘big fan’ of PM Modi, says Rubio over anti-India rhetoric row“It’s one more sign of how close our cooperation is and how important it is today in a world where there are so many challenges but also so many opportunities,” he said.Rubio highlighted the importance of the strategic alliance between the US and India and said both countries have a strategic interest in ensuring reliable long-term access to critical minerals and supply chains.The cooperation between the two sides in this field has been enhanced by India’s participation in the US-led critical minerals forum and the Pax Silica initiative, he said.Innovation economies such as the US and India “cannot afford to leave the foundational materials of these industries vulnerable to single-source monopolies that could deny us these things – not just in a time of conflict but as a leverage point”, Rubio said, in an apparent reference to China.The framework is also in line with the joint statement issued after Prime Minister Narendra Modi’s meeting with President Donald Trump in Washington in February 2025, which underlined the importance of critical minerals for emerging technologies and advanced manufacturing. India and the US are also partnering under the Forum on Resource Geostrategic Engagement (FORGE) initiative.The US government is mobilising more than $30 billion to secure critical mineral supply chains, including letters of interest, investments, loans and other support in partnership with the private sector.