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May 29, 2026
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India and US strike critical minerals deal to secure rare earth supplies

AI Summary
India and the US have signed a framework agreement to secure supplies of critical minerals and rare earths, including their mining and processing. The deal aims to deepen cooperation across the critical minerals and rare earths supply chain, including mining, processing, recycling, and related investments.

The India-US Critical Minerals Framework

India and the United States have signed a framework agreement to secure supplies of critical minerals and rare earths, including their mining and processing, according to the Indian Ministry of External Affairs and the US embassy in India.

What are Critical Minerals and Why are They Significant?

Critical minerals are nonfuel minerals used to manufacture batteries, clocks, wiring, military hardware, semiconductors, and other technological products. The US describes them as “essential to the economic or national security of the US” and having “a supply chain vulnerable to disruption”.

The Data Analysis: Critical Minerals Stockpile

India has 13.15 million tonnes of monazite, a phosphate mineral that contains rare earth oxides, one of the main natural sources of rare earths. The Indian government estimated that the country’s monazite contains 7.23 million tonnes of rare earth oxides (REOs). By comparison, a US Geological Survey report estimated that China has an estimated 44 million tonnes of REOs in its reserves, almost half of the world’s known reserves.

The Impact Analysis: Reducing Reliance on China

The US and other countries rely heavily on China for these minerals, and Washington, especially under President Donald Trump, has pushed to diversify US sourcing of these minerals to reduce reliance on China. The deal matters for India because its ambitions for critical minerals development require financing, and secure offtake.

The Prediction: Future Cooperation and Investment

The Quad countries have also agreed to share information on good practices and technical approaches for permitting, licensing, and other regulatory processes. They also agreed to cooperate on recycling and recovery of critical minerals, including during processing, to strengthen supply chains and promote the recycling of critical minerals among Quad partners and “like‑minded” countries.