India-US Cooperation on Critical Minerals

Background and Significance

The cooperation between India and the US on critical minerals is gaining momentum due to concerns over China's dominance in the supply chain, which China uses as leverage in trade disputes. India faced shortages of rare earth magnets when China restricted exports during its trade war with the US. China controls 90% of the global critical mineral processing market, making India and the US heavily reliant on imports.

US-India Business Council (USIBC) Initiative

• The USIBC launched a Critical Minerals Security Task Force to deepen bilateral cooperation across critical mineral supply chains.
• Key overlap: 26 out of India's 30 identified critical minerals overlap with US priorities, including rare earths and lithium.
• Five priority areas identified: 
  • 1. Lithium refining and cathode active materials (CAM)
  • 2. Recycling
  • 3. Feedstock corridors
  • 4. Synthetic graphite production for batteries
  • 5. Rare earth processing and magnet manufacturing
• Focus on building domestic capabilities, especially in lithium refining, due to the anticipated increase in electric vehicle adoption.

Workstreams of the Task Force

• 1. Supply Chain Security: Strengthening cooperation in mining, processing, and manufacturing.
• 2. Technology and Innovation: Joint research opportunities in next-generation materials.
• 3. Investment and Finance: Structuring bilateral investment opportunities.
• 4. Policy and Regulation: Supporting implementation of frameworks and fostering a conducive regulatory environment.

Bilateral Efforts and Strategic Initiatives

The signing of the bilateral Critical Minerals Framework in May focused on securing the supply, mining, and processing of critical minerals. The Framework aims to reinforce supply chain security in critical sectors, and India became a signatory to the US-led Pax Silica initiative in 2026.

During Prime Minister Modi's visit to the US in 2025, the India-US TRUST initiative was emphasized, aiming to enhance supply chain resilience in semiconductors, critical minerals, and other sectors. Both countries committed to strengthening collaboration in research, development, and investment in the critical mineral value chain.

Strategic Mineral Recovery Initiative

The launch of the Strategic Mineral Recovery initiative is a significant step, focusing on the recovery and processing of critical minerals such as lithium, cobalt, and rare earths from heavy industries like aluminum, coal mining, and oil and gas.