India and the United States have signed a critical minerals agreement aimed at strengthening cooperation in rare earth and strategic mineral supply chains amid growing global concerns over China’s export controls on key rare earth elements.
The partnership seeks to enhance collaboration in the sourcing, processing and development of critical minerals essential for sectors such as electric vehicles, renewable energy, semiconductors, defence systems and advanced manufacturing technologies.
Officials from both countries said the agreement is intended to improve supply chain resilience and reduce dependence on concentrated sources of rare earth materials. China currently dominates global rare earth processing and has recently tightened export controls on several strategic minerals, prompting countries to diversify sourcing arrangements.
The India–US pact is expected to encourage investments in mining, mineral processing, research and technology sharing, while also promoting cooperation between private sector companies and government agencies. Industry experts noted that India possesses significant reserves of rare earth minerals and critical raw materials that could support long-term supply diversification efforts.
The agreement also aligns with broader strategic and economic cooperation between India and the US, particularly in clean energy transition, electronics manufacturing and high-technology industries. Analysts believe stronger collaboration in critical minerals will play an important role in securing future industrial and energy supply chains.
Market participants said the move could open new opportunities for Indian mining, refining and manufacturing sectors while supporting efforts to build more reliable and diversified global mineral networks.