India, US Sign Critical Minerals Deal to Reduce Dependence on China

India and the United States on Tuesday signed a framework agreement on critical minerals and rare earth elements aimed at reducing dependence on Chinese-dominated supply chains and strengthening cooperation in mining, processing and recycling infrastructure.

The agreement was signed by External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio on the sidelines of the Quad ministerial meeting.

India, the US, Japan and Australia also signed the Quad Critical Minerals Framework during the ministerial, with both agreements expected to complement each other in securing supply chains for strategically important resources.

Quad Pushes Alternative Supply Chains

After signing the agreements, Rubio said the framework would help member countries coordinate investments and use economic policy tools to strengthen supply chains involving critical minerals.

The cooperation will focus on mining, processing infrastructure and recycling of rare earth materials — sectors currently heavily dominated by China.

The move reflects growing global concern over Beijing’s near-monopoly in the rare earth and critical minerals sector, which is essential for advanced manufacturing and defence technologies.

Why Rare Earths Matter

Rare earth elements and magnets are critical components used in products ranging from smartphones, refrigerators and electric vehicles to fighter aircraft, missiles and radar systems.

China currently controls a major portion of global rare earth mining and processing capacity, giving it significant influence over global supply chains.

Analysts have argued that disruptions during recent trade tensions highlighted vulnerabilities faced by countries dependent on Chinese exports.

Trump Administration Expands Critical Minerals Partnerships

The agreement also signals a broader shift in the US approach toward supply chain partnerships under President Donald Trump.

While Trump has often criticised traditional alliances during his second term, supply chain resilience has emerged as a key area where Washington is seeking deeper cooperation with allies and strategic partners.

The US has already signed a separate rare earth agreement with Australia and is reportedly expanding partnerships with countries capable of developing alternative supply chains.

Japan, another Quad member, has significantly reduced dependence on Chinese rare earths over the past decade after investing heavily in mining and processing infrastructure following earlier export restrictions imposed by Beijing.

Strategic Importance for India

For India, the agreement is expected to support efforts to strengthen domestic manufacturing capabilities and secure long-term access to critical minerals needed for clean energy, electronics and defence sectors.

The partnership is also likely to boost India’s role in emerging global supply chain networks amid growing geopolitical competition over strategic resources.