India, U.S. draw up deal on rare earth elements, Pg1

Key Highlights:

• India and the U.S. have established a framework for cooperation to ensure stable supplies of critical minerals and rare earth elements.
• The agreement addresses concerns about China's export controls on these vital materials for technology supply chains.
• The Quad nations (Australia, India, Japan, U.S.) also signed a separate framework to mobilize $20 billion for stable critical mineral supply chains.
• India became a signatory to the U.S.-led Pax Silica initiative on February 20.

Detailed Insights:

• The India-U.S. framework aims to deepen cooperation across the critical minerals and rare earths supply chain, including mining, processing, recycling, and related investments.
• This framework seeks to strengthen resilient and diversified supply chains and promote collaboration in financing and effective management of critical minerals and rare earths scrap.
• The understanding between India and the U.S. has been under consideration since Prime Minister Modi’s visit to Washington in February 2025, when secure supply routes for critical minerals were deemed a “shared strategic priority”.
• The Quad Critical Minerals Initiative Framework will support projects located in and operated by companies headquartered in Quad partner countries, addressing supply chain gaps.
• These frameworks are expected to facilitate greater alignment and harmonization of domestic laws and regulations to ease access to the supply chain.

Key Concepts Involved:

• Critical Minerals: Minerals essential for modern technologies and industries, with supply chain vulnerabilities.
• Rare Earth Elements: A set of seventeen metallic elements crucial for various high-tech applications.
• Export Controls: Government restrictions on the export of specific goods or technologies.