India-US Cooperation on Critical Minerals
India and the United States have collaborated on a bilateral initiative to advance the recovery and processing of critical minerals such as lithium and rare earth elements (REEs). This partnership, under the Transforming Relationship Utilizing Strategic Technology (TRUST) initiative, was announced during Prime Minister Narendra Modi's visit to Washington.
Objectives of the TRUST Initiative
- Reduce barriers to technology transfer and address export controls.
- Enhance high-tech commerce between the two nations.
- Create robust supply chains for critical minerals, advanced materials, and pharmaceuticals.
Key Highlights
- India joined the US-led Minerals Security Finance Network and the Minerals Security Partnership (MSP) in 2023.
- The TRUST initiative aims to counter China's dominance in critical minerals supply chains.
- It seeks to boost innovation across sectors like defense, AI, semiconductors, quantum computing, biotechnology, energy, and space.
Impact on Pharmaceuticals and National Programs
- Focus on active pharmaceutical ingredients (APIs) that depend on critical minerals.
- India is the world's second-largest manufacturer of APIs, after China.
- The US authorized $675 million for the Critical Minerals and Materials (CMM) program in 2020 to expand supply chains.
- India's National Critical Minerals Mission approved a budget of Rs 16,300 crore over seven years, with Rs 7,000 crore allocated for exploration.
TRUST Initiative and Global Partnerships
- TRUST deepens cooperation by addressing technology transfer barriers and export controls.
- Seeks to broaden collaboration beyond the Minerals Security Finance Network and the Minerals Security Partnership.
Importance of Critical Minerals
- Essential for strategic industries like defense, semiconductors, and energy.
- Elements such as neodymium and lithium are vital for advanced batteries and high-performance magnets.
- China controls nearly 70% of global REE production, accentuating the need for diversified supply chains.
- India remains reliant on imports for heavy rare earths despite having some reserves.
