India, US tie up for critical minerals after China shock

India and the US on Tuesday signed a framework on mining and refining of critical minerals and rare earths, a year after China threw global supply chains into chaos with an export ban on rare earth magnets which are used in a variety of industries.

- Manas Pimpalkhare & Rituraj Baruah

China's export curbs on critical minerals like gallium and germanium have spurred the US and India to secure their supply chains.

The framework will also promote collaboration in financing and processing of critical minerals and rare earth scrap.

Meanwhile, the Quad—an alliance of the US, Japan, Australia, and India—has also decided to support the development of critical mineral supply chains. Through its critical minerals initiative announced in July 2023, the alliance aims to mobilize investments worth $20 billion in government and private sector support to strengthen critical mineral supply chains, the external affairs ministry said. This will be done through identifying projects for investment, joint measures to curb unfair trade practices, and working together to recover critical minerals from scrap.

Strategic experts said the India-US framework could assist in critical mineral security for the world’s most populous country and the world’s largest economy.