India, US step up talks on critical minerals as rare earth supply risks grow

As global competition over critical minerals intensifies, India and the United States have stepped up coordination to secure supply chains that underpin modern manufacturing, clean energy, defence and electronics. Union Minister for Railways, Electronics and Information Technology Ashwini Vaishnaw participated in a high-level Critical Minerals Ministerial Meeting in Washington, signalling India’s growing role in reshaping global sourcing away from concentrated and fragile supply routes.

The meeting, hosted by US Treasury Secretary Scott Bessent, brought together ministers and senior officials from key economies at a time when rare earths, lithium, cobalt and other strategic minerals have become essential not just for economic growth, but also for national security. With electric vehicles, semiconductors, renewable energy and defence platforms all dependent on these materials, governments are now treating supply chains as a strategic priority rather than a market issue.

For India, the discussions come amid an ambitious push to expand domestic manufacturing, cut import dependence and position itself as a reliable partner in global value chains.

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What the India–US meeting focused on?

According to the US Treasury Department, the ministerial meeting focused on identifying vulnerabilities in critical mineral supply chains and exploring ways to diversify sourcing, processing and refining. Particular attention was paid to rare earth elements, where global supply remains heavily concentrated.

Ashwini Vaishnaw said strengthening critical mineral supply chains is vital for India’s manufacturing ambitions and its rapidly growing electronics sector. US Treasury Secretary Scott Bessent noted that participating countries shared a strong desire to act quickly to address weak links in supply chains. He added that nations are increasingly aligned on “de-risking” strategies rather than abrupt decoupling, aiming to reduce over-dependence while maintaining global trade flows.

Countries represented included Australia, Canada, the European Union, France, Germany, Italy, India, Japan, Mexico, South Korea, the United Kingdom and the United States. Cooperation across mining, processing, technology and financing is increasingly seen as the only viable path forward.

Rare earths may sound obscure, but they quietly power much of modern life. From electric vehicles and wind turbines to smartphones, defence equipment, medical devices and aircraft, these elements sit at the heart of technologies India wants to scale up. Without a steady supply, entire industries can slow down.

On paper, India seems well placed. It has an estimated 6.9 million metric tonnes of rare earth reserves, putting it among the top holders globally. In 2024, India produced just about 2,900 tonnes - nowhere near what its growing industries need. That shortfall forces manufacturers to depend on imports, leaving them vulnerable to price swings and geopolitical shocks beyond their control.

China’s dominance has added urgency to the issue. It controls around 60 per cent of global rare earth mining and almost 90 per cent of refining and processing. It is increasingly seen as a strategic imperative - one that affects energy transition goals, national security and the country’s ambitions in advanced manufacturing.

India’s rare earth magnet push gains momentum

Alongside international engagement, India is moving ahead with domestic initiatives. The scheme aims to establish an integrated manufacturing capacity of 6,000 metric tonnes per annum, covering the full value chain from rare earth oxides to finished magnets. Officials say this will help India participate more meaningfully in global advanced-materials supply chains while cutting import dependence. The government is in the process of finalising a request for proposal and has encouraged both domestic and international companies to participate.

The rare earth magnet initiative is aligned with India’s broader vision of becoming a developed economy by 2047. Officials say the programme will support clean energy targets, boost electric vehicle adoption and strengthen defence manufacturing, while also generating skilled employment.

The scheme also supports India’s Net Zero 2070 commitments by enabling cleaner technologies that rely on high-performance magnets and advanced materials