India and US sign mega rare earth deal to break China’s critical minerals monopoly

India and the United States on Tuesday (May 26) signed a major Critical Minerals Framework agreement, a move both countries described as crucial for securing the future supply of materials needed for advanced technology, clean energy and defence manufacturing. The agreement was signed amid growing global concerns over China’s dominance in the critical minerals sector, especially rare earth elements used in semiconductors, electric vehicles, batteries, military systems and renewable energy infrastructure.

India, US to build 'trusted networks'

The agreement builds upon the discussions held earlier this year in Washington DC, where US Secretary of State Marco Rubio launched the Forum on Resource Geostrategic Engagement (FORGE), an initiative designed to strengthen cooperation among trusted partners on mineral security.

According to a statement from the US Embassy, the framework aims to build trusted networks for sourcing and processing strategic minerals while reducing dependence on single-country supply chains. The deal also focuses on protecting critical mineral markets from what both sides described as coercive market practices.

What will happen under the rare earth minerals framework?

Under the new framework, India and the US are expected to work together on financing, supply chain resilience, mineral processing technologies and rare earth management.

External Affairs Minister S Jaishankar described the agreement as another sign of deepening ties between New Delhi and Washington. "It will strengthen resilient and diversified supply chains, help us to collaborate on financing and with the effective management of critical minerals and rare earths".

Calling the partnership increasingly important in a rapidly changing world, he added, "It is one more sign of how close our cooperation is in a world where there are so many challenges but also so many opportunities."

Rubio highlights India's importance in US strategic planning

Marco Rubio also stressed India’s growing importance in US strategic planning, particularly in the technology and manufacturing sectors. “I have spoken often during my time here over the last few days about the strategic alliance between the United States and India and how important that is for our national interest in the United States. And today is a tangible example of it,” Rubio said.