On December 21, 2024, Anindita Sinh reported that the partnership between India and the United States on critical minerals has gained momentum following the October 2024 memorandum of understanding (MoU) focused on supply chains. This agreement is crucial as critical minerals are essential for clean energy technologies, which both nations are prioritizing in their economic strategies [334d3e3e].
The urgency of this collaboration is underscored by China's significant control over the global market, holding 60% of rare earth mining and 80% of processing capacity. In response, the U.S. has committed over $17 million to secure its supply chains and reduce dependence on Chinese resources [334d3e3e].
India has set an ambitious target of achieving 500 GW of renewable energy by 2030, and the bilateral trade between India and the U.S. reached $191 billion in 2022, reflecting a robust economic relationship [334d3e3e]. The launch of the Initiative on Critical and Emerging Technology (iCET) in 2023 further aims to enhance collaboration in technology and resource management between the two nations [334d3e3e].
A significant aspect of the partnership is the 80% overlap in the lists of critical minerals identified by both countries, which presents a unique opportunity for joint ventures and cooperative strategies. However, challenges remain, particularly regarding differing approaches to mining practices and environmental regulations [334d3e3e].
Moreover, there is potential for India and the U.S. to extend their cooperation to Africa and other resource-rich regions, enhancing their strategic positioning in the global minerals market [334d3e3e]. This evolving narrative of India-US relations in the context of critical minerals not only highlights the importance of resource security but also reflects a broader trend of nations reevaluating their supply chains in light of geopolitical tensions and environmental considerations [334d3e3e].