India-US Sign Major Critical Minerals Pact To Counter Supply Chain Risks
India and the United States on Tuesday signed a major Critical Minerals Framework agreement aimed at strengthening cooperation in securing key resources required for electric vehicles, semiconductors, renewable energy and defence manufacturing.
The agreement is being seen as a major strategic move by both countries to reduce dependence on unstable supply chains and counter growing global concerns over concentration of mineral processing in a few countries, especially China.
The new framework focuses on critical minerals such as lithium, cobalt, nickel and rare earth elements — resources considered essential for future technologies and national security industries.
Officials from both sides said the partnership would help create “trusted and resilient” supply chains while improving cooperation in mineral exploration, refining, recycling, financing and advanced processing technologies.
The agreement builds on recent high-level discussions between New Delhi and Washington, including the launch of the Forum on Resource Geostrategic Engagement (FORGE) earlier this year by US Secretary of State Marco Rubio.
For India, the deal carries major long-term economic and strategic importance because the country currently relies heavily on imports for key minerals needed in battery production, clean energy systems and electronics manufacturing.
Much of the global refining and processing network for these minerals is currently dominated by China, raising concerns worldwide about supply chain vulnerabilities.
The agreement is expected to support India’s efforts to strengthen domestic manufacturing under initiatives like Make in India and Atmanirbhar Bharat while helping the country expand its electric vehicle, semiconductor and defence sectors.
The United States also announced plans to mobilise more than $30 billion through investments, loans and private sector partnerships to strengthen critical mineral supply chains globally.
S. Jaishankar welcomed the agreement and said it reflected the growing level of strategic trust between India and the United States.
He stated that the framework would help build diversified and resilient supply chains while deepening cooperation in managing critical mineral resources.
Marco Rubio described India as a vital strategic partner for Washington and said the agreement showed how closely the two countries were working together in areas linked to economic security and advanced technologies.
Experts, however, noted that the agreement is primarily a long-term cooperation framework and not an immediate guarantee of mineral supplies.
Its success will depend on future joint projects, investments, technology transfers and participation from private companies in both countries.
India has also been pursuing similar partnerships with countries including Australia and Argentina as part of its broader effort to secure access to strategic minerals critical for future industrial growth and energy transition goals.
