Editor’s Note
The Trump administration is set to take over power in the US very soon. This change may impact the US-India partnership across various sectors. Critical minerals are essential for both countries and with their relations with China unlikely to improve significantly, it is crucial for the US and India to strengthen the resilience of their global supply chains.
The US-India defence and security partnership is in a transformative phase, characterized 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,
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 focuses 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 and their Applications
The criteria for a mineral to be called as 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, serve 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 requiring a well-oiled and functioning global market.
The primary applications of critical minerals include using permanent magnets in electricity generators, batteries, and motors as catalysts for chemical reactions and polishing operations, defence technology, clean technologies, and others (see Table 1). 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), 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 their resilience and reduce the dependence.
Table 1: Applications of Critical Minerals
| Critical Mineral | Applications
|
| Antimony | Flame retardants, Lead-acid batteries, Lead alloys, Plastics (catalysts, and stabilizers), Glass and ceramics |
| Cobalt | Electric Vehicle Batteries, corrosion-resistant alloys, aerospace, Pigments and Dyes |
| Gallium | Electronic circuit boards, LED devices, semiconductors, specialized thermometers, barometric sensors, solar panels, blue-ray technology, pharmaceuticals |
| Indium | Electronics (Laptops, LED Monitors/TV, Smartphones) and Semi-Conductors |
| Lithium | Electric Vehicle, Batteries, glassware, ceramics, fuel manufacturing, Lubricant |
| Magnesium | Mosaic tiles, electrodes, chemicals and manufacture of magnesium metal. |
| Nickel | Stainless steel making; catalysis chemical industries, as an electroplating material; heat resistant alloys; alloying element for non-ferrous metals; space, defence & rocket industries; and nickel cadmium batteries. |
| Niobium | Used to produce metal alloys (steel), jet engines, rockets, construction beams, building girders, oil rigs and pipelines, superconducting magnets, MRI scanners, NMR equipment, eyeglasses, titanium niobium oxide anode materials, nuclear power plants, production of electronic components |
| Tantalum | Manufacture of machinery and equipment, used in Nickel-based super alloys for aircrafts, gas turbine components, missiles and radio communication systems, preparation of advanced airframes in Defence sector, digital camera, mobile phones, high temperature furnace parts, alloys for air and land-based turbines |
| Rare Earth Elements:
a) Terbium
b) Dysprosium
c) Neodymium
d) Samarium | Laptops, LED Monitors/TVs, Smartphones, EV drive trains, wind turbines, aircraft components, vehicle components, speakers, steel manufacturing, battery anodes, chemical catalysts, glass manufacturing, specialized glass lenses, hybrid and tactical wheeled vehicles, armoured vehicles, night vision goggles, communication, and navigation systems |
| e) Tungsten | Production of hard materials like high penetration alloy for weaponry, rockets, missiles, cutting tools (tungsten carbide), filament wires, electrodes and super alloys, oil and gas drilling |
| f) Vanadium | Consumed in the Steel industry for the manufacture of products, from low carbon flat rolled steels, high strength plates & structural steels to pipes, reinforcing bars, forging steels |
Source: Department of Defence Production, Ministry of Defence, “Report on Indigenization of Military Materials (including Critical & Strategic Materials), October 2022.
Current Critical Mineral Capacity of India and USA
Despite various challenges, the United States is strategically enhancing its capabilities in extracting, processing, and trading 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 U.S. government, with significant funding of $1.56 billion.
Since 2020, policy developments have increasingly recognized 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 India, the reserve capacity 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 developed 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 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 and BARC and M/s Ashvini Rare Earth Pvt. Ltd. (AREPL) have entered into a tripartite agreement to collaborate for the development and production of Nd-Pr, using Indian Rare Earth resources and transfer of technology under incubation mode.
Despite these challenges, India’s vast monazite reserves and ongoing initiatives reflect strong potential for developing a robust REE supply chain. Regarding policy developments, the Ministry of Mines, through GSI and other agencies, has prioritized 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 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 U.S. National Security Advisor Jake Sullivan, several key initiatives were highlighted, reflecting the potential for a robust India-U.S. 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-U.S. co-investments in lithium resource projects in South America and rare earths 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 finalising a Bilateral Critical Minerals Memorandum of Understanding (MoU). This MoU is designed to facilitate enhanced cooperation between the U.S. 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 neodymium-iron-boron metal, alloy, and magnet-making technologies. Collaborative research on the beneficiation of critical minerals such as lithium, titanium, gallium, and vanadium is also planned. These initiatives aim to enhance critical minerals’ technological capabilities and industrial applications, 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 prioritised developing indigenous capabilities in advanced materials, including composites, metals, alloys, ceramics, and specialized polymers.
The United States, similarly, is heavily dependent on imports of critical minerals for its defence use, clean energy transition, and critical infrastructure. The U.S. 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 U.S. 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-U.S. 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.
Neha Mishra
