India and the United States have signed a memorandum of understanding (MoU) to enhance and diversify the critical minerals supply chain, aimed at reducing dependence on China. The agreement was reached during a bilateral commercial dialogue held in Washington DC, with Indian Commerce and Industry Minister Piyush Goyal and US Secretary of Commerce Gina Raimondo signing the document.
Goyal described the MoU as the “highlight” of the dialogue, which also covered topics such as semiconductor supply chains, collaboration in third countries, and promoting innovation in clean energy and tourism. According to a release from the US Commerce Department, the MoU is designed to leverage the complementary strengths of both nations, ensuring greater resilience in the critical minerals sector.
Key areas of focus outlined in the MoU include identifying equipment, services, policies, and best practices to facilitate mutually beneficial commercial development related to the exploration, extraction, processing, refining, recycling, and recovery of critical minerals. This agreement is expected to pave the way for further research and development in the sector, providing India access to advanced processing technologies.
Researcher Anindita Sinh noted in a recent paper that recognizing Chinese dominance in the mining and processing of critical minerals has prompted countries to diversify their supply chains. Currently, China accounts for approximately 60% of global production and 85% of processing capacity for critical minerals, including Rare Earth Elements (REEs), graphite, and manganese. The demand for these minerals is projected to increase significantly, particularly lithium, which is expected to see a more than 40-fold rise in demand by 2040 to meet climate goals.
India has identified 30 critical minerals as national priorities and has joined the Minerals Security Partnership, a US-led initiative involving 14 countries and the European Union. During a media briefing, Goyal emphasized that the ongoing commercial dialogue, CEO forum, and Trade Policy Forum meetings demonstrate the effectiveness of bilateral institutional mechanisms and the growing resilience of the India-US relationship.
He highlighted that discussions included resilience in semiconductor supply chains, sustainability, and clean energy, along with potential collaborations in tourism and joint projects in third countries related to critical minerals. Furthermore, Goyal and Raimondo reviewed the progress on semiconductor supply chains and committed to fostering collaboration between companies in both nations to identify mutually beneficial business opportunities.
Looking ahead, the US Commerce Department plans to expand its presence in India, increasing its commercial service staff to a total of 70 across seven cities. Goyal and Raimondo also launched a new initiative, Indus Innovation, focused on enhancing innovation in energy security, technology, and sustainability.
This MoU marks a significant step in bolstering the strategic partnership between India and the US, as both countries work towards securing their critical mineral supply chains and advancing technological collaboration.
Sources By Agencies
