US and India Forge Alliance on Critical Minerals Supply Chains

During a meeting in Washington, US Commerce Secretary Gina Raimondo and India's Minister of Commerce and Industry Piyush Goyal signed a Memorandum of Understanding (MoU) aimed at diversifying and expanding critical mineral supply lines. This agreement is designed to enhance resilience in the critical minerals sector, which is crucial for the growing demand for clean energy solutions.

The MoU outlines a framework for both countries to explore opportunities in the commercial development of critical minerals, including exploration, extraction, processing, refining, recycling, and recovery. This cooperation is especially significant as rare earth elements are increasingly pivotal for technologies like electric vehicle (EV) batteries.

With projected demand for EVs expected to outpace current supplies, the US is keenly aware of the need to secure its critical mineral resources, particularly given China's dominant role in the global supply chain.

Additionally, both nations expressed a commitment to collaborate in the semiconductor sector, further strengthening their economic partnership. "We will continue to expand cooperation in new areas and build on our existing strengths, leveraging the vast opportunities for US-India trade," Goyal stated on social media platform X.

This move follows last year's agreement between the United States and Japan to bolster critical mineral supply chains amid concerns over China's influence. That agreement included commitments to eliminate export duties on critical minerals traded between the two countries.

As the global shift towards clean energy accelerates, the US-India partnership marks a significant step in building a more resilient and diversified supply chain for critical minerals.