Ashwini Vaishnaw Likely to Attend US Critical Minerals Meeting Amid China’s Supply-Chain Weaponization

Introduction

India is poised to have its Minister of Electronics and IT, Ashwini Vaishnaw, represent the nation at a pivotal meeting on critical minerals organized by the United States. This gathering comes at a time when China is leveraging its dominance over the critical minerals supply chain as a geopolitical weapon.

US Meeting on Critical Minerals

– Date & Host: The meeting will take place on Monday, hosted by US Treasury Secretary Scott Bessent.
– Participants: In addition to India, countries like Australia and several others will join finance ministers from the Group of Seven (G7) advanced economies.
– Aim: The initiative aims to address vulnerabilities in the global supply chain for critical minerals, crucial for various industries.

Background

– China’s Role: China’s strategic control over critical minerals has raised alarms globally. The country refines between 47% and 87% of essential minerals like copper, lithium, cobalt, graphite, and rare earths, according to the International Energy Agency. This dominance allows China to influence supply chains significantly.
– US Initiatives: Bessent has been advocating for a focused discussion on this issue since last summer’s G7 summit. Previously, finance ministers had convened virtually in December.

India’s Position

– Participation in Initiatives: India will take part in the Pax Silica initiative, scheduled just ahead of the Artificial Intelligence Impact Summit to be held in New Delhi in February.
– Previous Lack of Inclusion: Though part of the Quad Critical Minerals initiative, India was initially excluded from Pax Silica, which includes the US, Japan, South Korea, and others.

Geopolitical Dynamics

– US-Pakistan Relations: The US has established a separate critical minerals initiative with Pakistan, which has added complexity to regional dynamics. Recently, the US Export-Import Bank approved $1.25 billion to support mining operations in Pakistan, expected to create significant jobs in both countries.

India’s Critical Minerals Strategy

– National Critical Mineral Mission (NCMM): Launched in 2025, NCMM aims to secure supply chains for clean energy and defense sectors, reducing dependency on imports.
– Geological Survey Initiatives: The Geological Survey of India is intensifying exploration programs, undertaking 195 projects in the current field season, including 35 focused on critical minerals in Rajasthan.

Domestic Mining Initiatives

– Enhancing Local Resources: The mission aims to minimize import dependency, with over 100 critical mineral blocks set for auction and offshore exploration for polymetallic nodules containing cobalt, rare earth elements, nickel, and manganese.
– Investment in Manufacturing: The government has sanctioned a ₹7,280 crore program to establish a domestic integrated Rare Earth Permanent Magnet manufacturing ecosystem.

Global Supply Chain Implications

– Diversification Efforts: Nations are proactively seeking to diversify their critical minerals supply chains. Last October, Australia and the US signed an agreement for an $8.5 billion strategic reserve and supply pipeline, reflecting increased collaboration.
– Broadening Scope: The Trump administration has shown interest in exploring rare earth and critical mineral resources globally as part of these diversification efforts.

Conclusion

As Ashwini Vaishnaw prepares to engage in discussions on critical minerals, the meeting symbolizes a crucial step in international cooperation against China’s supply-chain weaponization. India’s strategic initiatives, including its focus on domestic resource development, position the country to play a vital role in the evolving global landscape of critical minerals. Redirecting efforts and resources toward securing these vital materials will benefit India in mitigating risks and enhancing its geopolitical significance.