India and US Forge Critical Minerals Partnership to Counter China's Dominance
Explained: What changes after India-US critical minerals deal, why China matters
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Image: Zee News
India and the United States have established a partnership to enhance cooperation in the critical minerals sector, focusing on mining, processing, and recycling. This agreement aims to reduce reliance on China, which currently dominates the market, and is part of a broader Quad initiative to strengthen supply chains among member nations.
- 01The agreement was finalized during a meeting in New Delhi between India's External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio.
- 02India has identified 30 minerals as critical, including lithium, cobalt, and rare earth elements, but currently produces only four.
- 03The Quad countries plan to mobilize up to $20 billion for mineral supply chain projects, focusing on reducing dependence on single-source suppliers.
- 04China controls about 60% of the world's rare earth mineral deposits and processes around 90% of the global supply, prompting the US to seek alternative sources.
- 05India's Union Budget for 2026-27 includes plans for 'rare earth corridors' to boost production and processing of critical minerals.
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India and the United States have signed a significant agreement to collaborate on critical minerals, which are essential for various modern technologies, including electric vehicles and renewable energy systems. This partnership, finalized in New Delhi, aims to enhance cooperation across the entire supply chain, from mining to processing and recycling. The agreement comes amid growing concerns over China's dominance in the critical minerals sector, where it holds approximately 60% of global deposits and processes around 90% of the supply. The US has been actively seeking alternative sources, given its heavy reliance on imports for many critical minerals. Alongside this bilateral agreement, the Quad nations—India, the US, Japan, and Australia—are launching a broader initiative to strengthen supply chains among member countries. India has identified 30 minerals as essential for its economic needs, yet currently only produces four. The government plans to establish 'rare earth corridors' in several states to enhance production capabilities. The Quad initiative aims to mobilize up to $20 billion to support mining and processing projects, thereby reducing reliance on a limited number of suppliers.
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The partnership is expected to enhance India's capabilities in critical mineral production, which could lead to job creation and technological advancements.
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