US trade advocacy body forms task force on India-US critical mineral cooperation, Pg13

Key Highlights:

• The US-India Business Council (USIBC) has established a Critical Minerals Security Task Force to enhance cooperation across critical mineral supply chains.
• This initiative follows the signing of a bilateral Critical Minerals Framework between India and the United States on May 26, 2026.
• The task force aims to address China's significant dominance, which accounts for 90% of global critical mineral processing.
• Out of 30 minerals identified as critical by India, 26 align with US priorities, including rare earths, lithium, cobalt, nickel, and graphite.
• Five priority areas for engagement include lithium refining, cathode active materials, recycling, feedstock corridors, synthetic graphite production, and rare earth processing and magnet manufacturing.

Detailed Insights:

• The USIBC, part of the U.S. Chamber of Commerce, facilitates bilateral trade and economic ties between the two nations.
• The Critical Minerals Framework was signed in New Delhi by External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio.
• This framework seeks to deepen collaboration in mining, processing, recycling, and investment related to critical minerals and rare earths.
• The cooperation is part of a broader strategy to build resilient and diversified supply chains, reducing vulnerability to single-source monopolies.
• India has also joined the US-led Pax Silica initiative and is collaborating under the Forum on Resource Geostrategic Engagement (FORGE) initiative.
• India currently possesses negligible lithium refining capacity, a crucial component for the rapidly expanding electric vehicle battery sector.
• Rare earth permanent magnets (REPMs) are essential for various sectors, including electric mobility, renewable energy, electronics, aerospace, and defense.
• India has approved a Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with an outlay of ₹7,280 crore to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM production capacity.
• The task force will focus on fostering technology partnerships and integrating supply chains into shared end markets to bolster domestic manufacturing.

Key Concepts Involved:

• Critical Minerals: Minerals vital for economic development, national security, and advanced technologies, characterized by high supply risk.
• Rare Earth Elements (REEs): A group of 17 metallic elements crucial for high-tech applications, often considered a subset of critical minerals.
• Supply Chain Resilience: The capacity of a supply chain to withstand disruptions and recover efficiently, particularly important for strategic resources.
• Lithium Refining: The process of converting raw lithium into battery-grade compounds like lithium hydroxide or carbonate for use in lithium-ion batteries.
• Rare Earth Permanent Magnets (REPMs): Powerful magnets made from alloys of rare earth elements, indispensable for various high-technology industries.