Critical mineral supply chains’ boost vital for electronics sector: Vaishnaw

UNion government minister Ashwini Vaishnaw on mon united finance ministers from 10 countries at a transnational get together in Washington to discuss strengthening critical minerals supply chains amid concerns over China’s dominance in the sector.US treasury secretary Scott Bessent hosted the gathering, which included representatives from representatives from the G7 nations, Mexico and the European Union. Officials said the discussions laid the groundwork for possible future collaborations in critical minerals.Washington stressed the need for “prudent derisking”, expressing concern that supply chains had become vulnerable to disruption and manipulation due to excessive concentration in a few geographies — a reference to China’s dominant position in critical minerals production. China currently leads production of 30 minerals deemed critical by the US Geological Survey and accounts for roughly 70% of rare earths mining and over 90% of processing globally. “Throughout the course of discussions, attendees expressed a strong, shared desire to quickly address key vulnerabilities in critical minerals supply chains. The United States highlighted actions and investments it has already undertaken, as well as planned steps to create resilient, secure, and diversified critical minerals supply chains,” the US treasury department’s readout said.Posting on X after the meeting, Vaishnaw said strengthening critical mineral supply chains would aid India’s manufacturing capabilities and electronics sector.The gathering came as the US prepares to invite India to join Pax Silica, its flagship initiative for building secure supply chains for semiconductors, AI technology and critical minerals. US ambassador-designate Sergio Gor announced in New Delhi on Monday that India would be invited to join the grouping — which already includes Japan, South Korea and the UK — as a full member next month.India and the US signed a memorandum of understanding in October 2024 to strengthen critical minerals supply chains. The two countries also launched the Strategic Mineral Research Initiative to recover and process lithium, cobalt and rare earths from industries such as aluminium, coal mining and oil and gas. In 2023, India joined the US-led Minerals Security Partnership, a 14-nation grouping that includes the European Union, formed to catalyse investments to build “robust, responsible critical minerals supply chains to support economic prosperity and climate objectives”.Vaishnaw, who returned to India on Monday evening, also met Michael Kratsios, director of the White House’s office of science and technology policy and Trump’s top science adviser. Kratsios will attend the India AI Summit in February.