Trump and Modi announce initiative to recover lithium, rare earths, and more—including from fossil industry sectors.
India and the U.S. aim to deepen economic ties and enhance collaboration in strategic sectors such as defense, semiconductors, artificial intelligence, and energy security. To advance these goals, Indian Prime Minister Narendra Modi and U.S. President Donald Trump launched the “U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) for the 21st Century” initiative during their meeting in Washington.
One key objective is to double bilateral trade to over $500 billion by 2030, supported by plans for a new trade agreement. In energy security, their joint statement underscores the importance of fossil fuel reserves, including oil, gas, and nuclear energy, while also highlighting the role of critical minerals essential for the green energy transition and emerging technologies. To secure supply chains, both nations plan to collaborate on research and invest across all stages of the value chain.
Modi and Trump also announced the Strategic Mineral Recovery Initiative, aimed at recovering and refining key minerals such as lithium, cobalt, and rare earth elements. This effort will tap into sources like aluminum production, coal mining, and the oil and gas industry.
U.S.-India COMPACT marks the latest step in a series of agreements strengthening bilateral ties. Under Trump’s predecessor, Joe Biden, the two nations had already expanded cooperation on critical and emerging technologies (we reported). Raw materials have also been a key topic between the two nations. The resource partnership is also a strategic move to counter China’s influence in the Indo-Pacific, as both countries seek to reduce dependence on Chinese imports and boost domestic production. For India, an emerging industrial powerhouse, the initiative aligns with its ambition to position itself as a key competitor to China’s economic dominance.
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