India and the United States have signed a new framework agreement on critical minerals and rare earths during US Secretary of State Marco Rubio's four-day visit to India. The agreement aims to strengthen cooperation in mining, processing, recycling, and supply chains for strategically important minerals. These minerals are essentially used in advanced technologies and defence manufacturing, NDTV reported.
The move comes amid growing global concerns over dependence on China for rare earth minerals and critical supply chains. External Affairs Minister Dr. S. Jaishankar even described the agreement as "something very timely and critical".
Why are critical minerals important?
Critical minerals are essential for products such as semiconductors, electric vehicle batteries, drones, military hardware, and renewable energy systems. The US currently depends heavily on imports for several such minerals, while China dominates global rare earth mining and processing.
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Rubio said the partnership is important for both countries' strategic interests.
"We are two countries that have strategic interests in ensuring reliable long-term access to critical minerals and supply chains that are important for our innovation economy," he said.
Although China was not directly mentioned during the announcement, the agreement comes at a time when countries are trying to reduce dependence on Beijing for key industrial materials, as per NDTV.
India currently has reserves of 30 critical minerals, according to the Ministry of Mines. The country also possesses significant rare-earth deposits across the states of Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand.
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Quad initiative and future cooperation
The Government of India has also announced plans to create "rare earth corridors" in Odisha, Tamil Nadu, Kerala, and Andhra Pradesh for mining, processing, and research.
During the United States Secretary of State's visit, the Quad grouping, namely India, the US, Japan, and Australia, also announced new frameworks on critical minerals and energy security. The grouping pledged up to USD 20 billion in public and private investment to strengthen supply chains.
