Ashwini Vaishnaw to Attend U.S. Critical Minerals Meeting Amid China’s Supply Chain Tensions
India’s Minister of Electronics and IT, Ashwini Vaishnaw, is set to represent the country at an important meeting focused on critical minerals, organized by the U.S. on Monday. This engagement comes in response to China’s potential weaponization of the supply chain for these vital raw materials.
U.S. Engagement with India on Critical Minerals
– U.S. Treasury Secretary Scott Bessent confirmed that India, alongside Australia and other nations, would participate in this high-level meeting involving G7 finance ministers in Washington.
– Bessent has been advocating for this separate discussion since last summer’s G7 leaders’ summit, indicating a strong desire for collaboration on critical mineral supply stability.
– A previous virtual meeting held in December reflects ongoing efforts to strengthen partnerships in this sector.
India’s Strategic Direction in Critical Minerals
– India, although part of the Quad Critical Minerals initiative, was initially excluded from the Pax Silica partnership, which includes several key nations like Japan, South Korea, and the UK.
– The U.S. has established a separate critical minerals initiative with Pakistan, a situation that has raised concerns in India, especially following the U.S. Export-Import Bank’s approval of $1.25 billion in financing for the Reko Diq mining project in Pakistan. This initiative is expected to generate significant employment opportunities while also enhancing U.S.-Pakistan ties.
National Critical Minerals Mission (NCMM)
– India’s approach to critical minerals and rare earths revolves around the National Critical Mineral Mission (NCMM), launched in 2025, aimed at securing supply chains for essential sectors including clean energy and defense. The NCMM seeks to minimize import dependence and bolster domestic production.
– The Geological Survey of India (GSI) has ramped up exploration efforts, with 195 projects underway in the 2024-25 field season, focusing on critical mineral deposits in regions like Rajasthan.
– More than 100 critical mineral blocks are slated for auction, with plans to explore offshore regions rich in polymetallic nodules, including cobalt and rare earth elements.
Domestic and International Collaboration
– The Indian government has approved a ₹7,280 crore program to establish a comprehensive Rare Earth Permanent Magnet (REPM) manufacturing ecosystem domestically.
– Collaborations with Russia are intensifying to develop joint projects in critical minerals and rare earths, complementing efforts to diversify partnerships within this sector.
Global Context: Dependency on China
– The global dependence on China for critical materials such as rare earths, lithium, cobalt, and graphite has become increasingly concerning, particularly as these elements are crucial for defense technologies, semiconductors, and renewable energy equipment.
– According to the International Energy Agency, China dominates the critical minerals supply chain, processing between 47% and 87% of these essential materials.
– In light of this, many countries, including Australia, are diversifying their supply chains; Australia recently signed a significant agreement with the U.S. to develop a strategic critical minerals reserve valued at $8.5 billion.
Conclusion
As Ashwini Vaishnaw prepares for the U.S. critical minerals meeting, India’s proactive stance in securing its supply chains amid global uncertainties reflects a growing commitment to independence and sustainable development in critical sectors. This engagement not only signifies India’s strategic pivot towards securing its mineral resources but also highlights the international community’s collective efforts to navigate the complexities presented by China’s dominance in this space.