‘No more single-source monopolies’: India, US seal critical minerals pact amid supply chain push

India and the United States on Tuesday signed a bilateral framework aimed at securing the supply and processing of critical minerals and rare earths, with both sides pitching the agreement as a key step towards reducing dependence on vulnerable global supply chains.

The framework was signed in Delhi by External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio during Rubio’s visit to India.

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The agreement comes at a time when countries across the world are racing to secure access to critical minerals used in sectors such as semiconductors, electric vehicles, batteries, defence manufacturing and advanced technologies. Concerns over concentrated supply chains and strategic dependence on a handful of countries have pushed major economies to build alternative partnerships.

Speaking after the signing ceremony, Rubio described the framework as a “tangible example” of the growing strategic partnership between Washington and New Delhi.

“I have spoken often during my time here over the last few days about the strategic alliance between the United States and India and how important that is for our national interest in the United States. And today is a tangible example of it,” Rubio said.

Rubio warns against ‘single source monopolies’

The US Secretary of State said both countries shared a common strategic interest in ensuring reliable access to critical minerals and supply chains essential for innovation-driven economies.

Rubio noted that discussions around the partnership had gained traction after India participated in the Critical Minerals Forum hosted in Washington on February 4 and later signed on to Paxilla.

He said countries like India and the United States “cannot afford to leave the foundational materials of these industries vulnerable to single-source monopolies”.

“These could deny us these things, not just in a time of conflict, but as a leverage point contrary to our sovereign national interests,” Rubio added.

Jaishankar says framework will deepen cooperation

Jaishankar said the agreement would strengthen cooperation across the entire supply chain, including mining, processing, recycling and investments linked to critical minerals and rare earths.

“We are today signing a bilateral India-US framework on securing supplies of mining and processing of critical minerals and rare earths,” he said.

The External Affairs Minister said the issue was also discussed during the Quad meeting and described the initiative as “timely and critical”.

According to Jaishankar, the framework aims to build resilient and diversified supply chains while also improving collaboration in financing and effective management of critical minerals.

“It is one more sign of how close our cooperation is in a world where there are so many challenges but also so many opportunities,” he said.