Ashwini Vaishnaw Set to Attend US Critical Minerals Meeting Amid China’s Supply Chain Tensions
New Delhi: India is poised to be represented by Minister of Electronics and IT, Ashwini Vaishnaw, at a significant meeting on critical minerals organized by the US this coming Monday. This event comes at a time when the supply chains for essential raw materials are being weaponized by China.
Key Details About the Meeting
– Participants: The meeting will feature finance ministers from the Group of Seven (G7) advanced economies, alongside representatives from Australia, India, and various other nations.
– US Treasury Secretary’s Remarks: Scott Bessent revealed he has advocated for this gathering since the G7 leaders’ summit last summer. A previous virtual meeting was held in December, underscoring the urgency of these discussions.
– India’s Role: Sources indicate that Vaishnaw is expected to represent India, highlighting India’s growing significance in global discussions surrounding critical minerals.
India’s Strategic Engagement in Critical Minerals
India’s involvement extends beyond this meeting. The nation is also set to join the Pax Silica initiative led by the US, as it prepares for the upcoming Artificial Intelligence Impact Summit in New Delhi on February 19-20. This involvement marks a notable shift, as India was initially excluded from Pax Silica, which initially included countries like Japan, South Korea, and Australia, among others.
– US-Pakistan Relations: India’s discomfort is palpable given the separate critical minerals initiative the US has with Pakistan. Notably, the US Export-Import Bank recently approved $1.25 billion to bolster mining efforts at Reko Diq in Pakistan, creating political tension in the region.
India’s Initiative on Critical Minerals
India’s agenda centers around its National Critical Mineral Mission (NCMM), which was launched in 2025, aiming to secure strategic supply chains essential for sectors like clean energy and defense, thus reducing reliance on imports. Key focuses include:
– Exploration Efforts: The Geological Survey of India (GSI) is ramping up its exploration initiatives, with 195 projects slated for the 2024-25 season, particularly in Rajasthan to uncover valuable critical mineral deposits.
– Domestic Mining Push: The mission aims to diminish import dependency through enhanced domestic exploration. Plans include auctioning over 100 critical mineral blocks and expanding exploration into offshore areas rich in polymetallic nodules.
Technological and Economic Progress
To support its critical minerals sector, India has sanctioned a ₹7,280 crore program to establish a domestic integrated Rare Earth Permanent Magnet (REPM) manufacturing ecosystem. This initiative is critical as nations globally seek alternatives to China’s dominance in the mining sector.
China currently controls a staggering percentage of critical minerals, refining between 47% and 87% of resources such as copper, lithium, cobalt, graphite, and rare earth elements, according to the International Energy Agency. As global supply chains feel the pressure from China’s tactics, nations are eager to diversify their sources.
– International Collaborations: Australia has recently signed a strategic agreement with the US to establish a critical minerals reserve valued at $8.5 billion, enhancing their market positions.
Conclusion
India’s upcoming participation in the US critical minerals meeting reflects its proactive stance in addressing supply chain vulnerabilities. As the country solidifies its position in global discussions, the focus on critical minerals and the initiatives driven by the National Critical Mineral Mission will be vital in reducing dependency on nations that pose geopolitical risks. As the landscape evolves, India’s commitment to expanding its critical minerals sector could play a pivotal role in shaping not just its economy but also global supply dynamics in this essential arena.