The United States and India have signed a major agreement on critical minerals and rare earth elements during the visit of US Secretary of State Marco Rubio to India. The agreement was signed with Indian External Affairs Minister S. Jaishankar in New Delhi.
The deal comes at a time when both countries are trying to strengthen economic and strategic ties after disagreements over tariffs and India’s continued purchase of Russian oil. The agreement focuses on securing the supply of critical minerals that are essential for modern industries and advanced technologies.
Why Critical Minerals Matter
Critical minerals are important for manufacturing products such as:
- Electric vehicle batteries
- Semiconductors and computer chips
- Defence equipment
- Smartphones and electronics
- Solar panels and wind turbines
- Artificial intelligence hardware and data centers
Many of these industries currently depend heavily on China, which dominates the global rare earth and mineral processing market. China is estimated to control around 60–70% of global rare earth processing capacity. Because of this, countries like the US and India are now trying to build alternative supply chains.
Why the US Is Expanding These Partnerships
India is not the only country working with Washington on critical minerals. The US has recently signed or discussed similar agreements with several countries, including Argentina, Peru, Morocco, the United Arab Emirates, the Philippines, the United Kingdom, and Uzbekistan. The US has also announced major investments in mining projects in countries like Pakistan.
Washington’s broader goal is to create a reliable global network for critical minerals so that industries linked to clean energy, defence, and advanced technology are less dependent on Chinese supplies.
Main Features of the India-US Deal
According to statements from India’s Ministry of External Affairs, the agreement will increase cooperation across the full supply chain, including:
- Exploration and mining
- Processing and refining
- Recycling of critical minerals
- Technology sharing
- Investment partnerships
- Building resilient supply chains
The partnership aims to reduce overdependence on a single country and improve long-term supply security for both nations.
India’s Mineral Strength
India has identified around 30 minerals as “critical” for its future economic and industrial growth. These include:
- Lithium
- Cobalt
- Copper
- Nickel
- Graphite
- Silicon
- Titanium
- Tungsten
- Zirconium
- Rare earth elements
Government data shows India has large reserves of monazite, a mineral rich in rare earth oxides. India is estimated to have more than 13 million tonnes of monazite reserves containing around 7 million tonnes of rare earth oxides. Although China still holds much larger reserves and stronger processing capabilities, India’s resources are increasingly attracting global attention.
Conclusion
The India-US rare earth and critical minerals agreement marks an important step in strengthening strategic and economic cooperation between the two countries. For India, the deal could bring foreign investment, advanced technology, and opportunities to expand its mining and processing industries. For the US, it offers a chance to diversify supply chains and reduce dependence on China in sectors that are crucial for future technology and national security.
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