Focus on the Entire Value Chain for Critical Raw Materials
Indian Foreign Minister Subrahmanyam Jaishankar on Tuesday announced the signing of a strategic agreement with the United States on critical minerals and rare earths. The agreement is intended to cover the entire value chain, including mining, processing, recycling and related investments, The Economic Times quoted the minister as saying.
The agreement comes at a time of closer coordination between the two countries. India and the United States, together with Japan and Australia, are members of the Quad format, whose foreign ministers are currently meeting in New Delhi. In his opening remarks, Jaishankar cited resilient supply chains as well as concentrations in production and resources among the key challenges.
The United States and India are currently seeking to reduce their heavy dependence on raw material imports from China. India has its own rare earth deposits, but production remains comparatively low at just under 3,000 tonnes per year. This is set to change, according to the draft budget for 2026 and 2027.
Last year, India also announced substantial investments in the production of rare earth magnets, which are of major importance for industries including the automotive sector.
Photo: atakan via Canva
