US, India set up framework for critical minerals pact

The United States and India have signed a bilateral critical minerals agreement creating the framework for a strategic partnership focused on the security of supply through mining and processing.

This agreement was signed on Tuesday near the conclusion of U.S. Secretary of State Marco Rubio visit to India, where he met with External Affairs Minister Subrahmanyam Jaishankar as well as foreign ministers of Japan and Australia.

It builds on discussions held in February during high-level meetings in Washington, D.C., where Rubio launched the Forum on Resource Geostrategic Engagement.

Through this framework, the U.S. and India will engage in international efforts to protect sensitive supply chains from “coercive market practices” and reduce their “collective vulnerability to single-source monopolies,” the U.S. Embassy & Consulates in India said in a statement.

Specific terms of the framework weren’t disclosed. It’s not clear either how the cooperation will take place.

US minerals push

Critical minerals have become a central pillar of the Trump administration’s industrial and national security strategy, as Washington seeks to reduce U.S. dependence on China for materials essential to defense systems, semiconductors, electric vehicles and energy technologies.

Washington has accelerated efforts in recent months to secure domestic supply chains through funding for mining and processing projects, while strengthening partnerships with allied resource-rich countries to diversify supplies.

India, which officially recognizes 30 critical minerals, has also become a core part of that strategy for its untapped potential. The country has over 13 million tonnes of monazite, a phosphate mineral containing rare earth elements, government statistics show.

Still, more investments would be needed for India to become a critical mineral powerhouse. The U.S. International Trade Administration (ITA) said in a report this year that the Asian nation produces only four critical minerals: copper, graphite, phosphorous and titanium. Earlier this year, New Delhi announced plans to roll out an incentive scheme to bolster its critical mineral processing capacities.

Before India, the U.S. had already signed critical mineral pacts with Japan and Australia. On Tuesday, India’s foreign ministry announced a critical minerals framework among the four countries. India is also closing in on a critical minerals pact with Russia, Reuters reported earlier this month.

The bilateral agreement follows India’s February inclusion into Pax Silica, a Washington-led initiative to counter China’s dominance in emerging sectors such as artificial intelligence.