 "The strategic partnership between India and the US has been progressively deepening, with a recent focus on critical minerals, underscoring the importance of securing supply chains for key sectors such as defence, clean energy, and technology. Image: REUTERS")
The US-India defence and security partnership has been entering a transformative phase, characterised by unprecedented levels of cooperation, technological advancement, and strategic alignment under the India-US Initiative on Critical and Emerging Technology ( iCET ). This initiative strengthens bilateral ties and contributes to regional stability in the Indo-Pacific by fostering innovation, enhancing research collaboration, and promoting secure technology solutions globally,
The iCET represents a forward-looking framework that positions India and the US at the forefront of technological innovation, setting a precedent for strategic partnerships in the increasingly interconnected global landscape. The recent addition of critical minerals under the umbrella of iCET during the second iCET meeting further bolsters the promising future of the India-US defence partnership. This expansion includes a focus on sectors such as space, semiconductors, advanced telecommunications, AI, quantum computing, biotechnology, and clean energy. The strategic importance of this enhanced partnership cannot be overstated. By securing long-term supplies of critical minerals, both nations can reduce their reliance on imports and ensure a more resilient and secure supply chain for their clean energy and defence sectors.
Global Critical Minerals Supply Chain
The criteria for a mineral to be called ‘ critical ’ depends on the time and space in which it will be used or have a temporal-spatial difference. Different countries have different, but very similar, ways of defining “critical minerals”, minerals whose supply is at risk due to geological scarcity, geopolitical issues, trade policy, or, most importantly, serves an essential function in one or more energy technologies, including technologies that produce, transmit, store, and conserve energy. Due to the commercial geography of each critical material, all nations import critical minerals and related technology or rely on a steady demand for their resources, thus needing a well-functioning global market.
The primary applications of critical minerals include the utilisation of permanent magnets in electricity generators, batteries, and motors; as catalysts for chemical reactions and polishing operations; defence technology; clean technologies; and others. Over the past four decades, China’s robust position in the global critical minerals supply chain has made the world vulnerable to China’s geopolitical aspirations on various occasions, as reflected during the China-Japan Senkaku Island dispute (2011), the US-China trade war (2018), and recently Beijing announced new export controls on various military-related materials and tools. The global supply chain needs to diversify further to build on its resilience and reduce its dependence.
Critical Mineral Capacity of India-US
Despite various challenges, the United States is strategically enhancing its capabilities in the extraction, processing, and trade of rare earth elements (REEs), which are essential for high-tech and defence applications. A key initiative in this strategy is the Round Top rare earth mineral project in Texas, led by MP Materials in partnership with the US government, with significant funding of $1.56 billion.
Impact Shorts
More ShortsSince 2020, policy developments have increasingly recognised the importance of critical minerals in the United States. Notable measures include the Onshoring Rare Earth ( ORE ) Act, the Inclusion of Critical Minerals in Energy Act of 2020 , a comprehensive 100-day review by the Biden administration in 2021 of the supply chains of four critical products, including critical minerals, the First Critical Mineral List released by the United States Geological Survey (USGS) in 2022, and others.
In the case of India, the reserve capacity of rare earth elements could prove to be of significant use. Although India’s REE sector faces challenges, such as limited intermediate and final-stage processing capabilities and regulatory restrictions, initiatives have been developing to build strategic partnerships and joint ventures to enhance domestic capabilities. With its sixth-largest global reserves of REEs , India has launched various projects to develop self-sufficiency in the past years. For instance, three Indian state-run firms—NALCO, Hindustan Copper, and Mineral Exploration Co-op—formed a joint venture named Khanij Bidesh India (KABIL) to explore REE mines in Argentina, Bolivia, and Chile. In addition, the Defence Metallurgical Research Laboratory (DMRL) has developed technology for producing REE-based magnets, and Indian Rare Earth Limited (IREL), in collaboration with the Bhabha Atomic Research Centre (BARC) government department, is extracting REEs from monazite sand ores in India.
Moreover, IREL, BARC, and M/s Ashvini Rare Earth Pvt. Ltd. (AREPL) have entered into a tripartite agreement to collaborate on the development and production of Nd-Pr using Indian Rare Earth resources and technology transfer under incubation mode. Despite these challenges, India’s vast monazite reserves and ongoing initiatives reflect strong potential for developing a robust REE supply chain. In terms of policy developments, the Ministry of Mines, through GSI and other agencies, has prioritised mineral discovery, with 123 exploration projects conducted since 2020.
With the amendments to the Mines and Minerals Development and Regulation (MMDR) Act (2021), the reforms are made to attract domestic and foreign investments, with the goal of doubling the mining sector’s GDP contribution by 2025. Following the MMDR 2021 suggestions, the other initiatives include allowing private sector exploration accredited by the Quality Council of India-National Accreditation Board for Education and Training (QCI-NABET) and the 2023 introduction of a comprehensive list of 30 critical minerals to ensure supply for key sectors.
Defence Prospective after the Inclusion of Critical Minerals under iCET
In the past years, the strategic partnership between India and the United States has been progressively deepening, with a recent focus on critical minerals, underscoring the importance of securing supply chains for key sectors such as defence, clean energy, and technology. During the recent iCET meeting , chaired by Indian National Security Advisor Ajit Doval and US National Security Advisor Jake Sullivan, several key initiatives were highlighted, reflecting the potential for a robust India-US critical mineral partnership:
Co-investments in Lithium and Rare Earths Projects
Lithium is indispensable for modern energy storage solutions, particularly for electric vehicles (EVs) and renewable energy systems. Rare earth elements (REEs) are essential for various high-tech applications, including electronics, defence systems, and clean energy technologies. The India-US co-investments in lithium resource projects in South America and rare earth projects in Africa would secure a stable supply of these critical materials, thus reducing reliance on a single source and enhancing the resilience of supply chains.
Bilateral Critical Minerals Memorandum of Understanding
A significant component of this partnership is the finalisation of a Bilateral Critical Minerals Memorandum of Understanding (MoU). This MoU is designed to facilitate enhanced cooperation between the US Department of Commerce and the United States Geological Survey (USGS) with the Indian Ministry of Commerce and Industry and the Ministry of Mines. This collaborative framework is expected to streamline the exploration, extraction, and processing of critical minerals, thereby securing a more reliable and resilient supply chain for both nations.
Advanced Materials R&D Collaboration
The partnership also extends to advanced materials research and development (R&D) collaboration, focusing on technologies for neodymium-iron-boron metal, alloys, and magnet making. Additionally, collaborative research on the beneficiation of critical minerals such as lithium, titanium, gallium, and vanadium is planned. These initiatives aim to enhance the technological capabilities and industrial applications of critical minerals, fostering innovation and self-reliance in both countries.
For India, the strategic focus on self-reliance and technological sovereignty in aerospace and defence is driven by growing dependencies on critical materials, which pose substantial risks to national security and supply chain resilience. To mitigate these risks, India has been prioritising the development of indigenous capabilities in advanced materials, including composites, metals, alloys, ceramics, and specialised polymers. The US, similarly, is heavily dependent on imports of critical minerals for its defence use, clean energy transition, and critical infrastructure. The US supply chain vulnerabilities are exacerbated by its trade war with China, a major exporter of critical minerals, and geopolitical tensions with Russia, another significant source. This dependency has increased the US administration’s initiatives to diversify its critical mineral sources, thus strengthening supply chain resilience.
The inclusion of critical minerals in the iCET collaboration is essential for both nations to achieve self-reliance, ensure national security, and drive innovation in critical sectors. The partnership not only fortifies the supply chains of both countries but also sets a precedent for international cooperation in securing critical resources in an increasingly interconnected and interdependent global economy. In addition, this initiative complements other existing India-US joint initiatives, such as the Quad Critical Minerals Partnership Act and the Mineral Security Partnership . These initiatives collectively aim to secure reliable and diversified supply chains, reduce strategic vulnerabilities, and promote sustainable economic growth.
The author is Associate Fellow, Centre for Air Power Studies. The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.