India, the United States, Japan, and Australia—members of the Quad grouping—have jointly unveiled a new initiative aimed at strengthening the
global supply chain for critical minerals. This move comes amid growing anxiety over China’s overwhelming influence in this vital sector.
🔍 Key Highlights of This Report:
- Quad Ministers Meet in Washington
- Launch of the Quad Critical Minerals Partnership
- China’s Lead in the Rare Earth Market
- Disruption to India’s EV Sector
- G7 Framework Supports Quad’s Push
🇺🇸 Diplomatic Talks in Washington, DC
At the second ministerial-level Quad meeting in Washington,
the four nations reaffirmed their shared agenda centered on:
- Maritime security
- Economic and technological cooperation
- Crisis and humanitarian response
- Securing critical supply chains
They also issued a joint condemnation of the Pahalgam terror attack, calling for accountability and swift justice for those responsible.
🛠️ New Quad Critical Minerals Framework
The four nations launched a joint platform to enhance the stability and diversification of critical mineral supply chains. Key goals include:
- Reducing reliance on any single nation for key resources
- Encouraging private sector participation
- Recovering rare earth elements from electronic waste
- Collaborating on technological innovation in mining and processing
Concerns were expressed over the strategic risks posed by overdependence on Chinese processing capacity, particularly the threat of economic
pressure and export restrictions.
🌍 China’s Stronghold on Rare Earth Elements
Minerals like lithium, cobalt, and rare earths are indispensable in modern manufacturing—from electric vehicles to fighter jets and semiconductors.
China currently leads global production and refining, especially in the case of NdFeB magnets—essential for EV motors and defense equipment.
While countries such as Japan have revived part of their refining capacities, the U.S. and India still largely depend on Chinese supplies.
🧱 Geopolitical Friction and Trade Restrictions
Following U.S.-China trade tensions that escalated under President Trump, Beijing tightened export protocols for select critical minerals. These
restrictions particularly affect heavy rare earths and materials with military applications.
⚡
India’s EV Sector Feels the Heat
India’s fast-growing electric vehicle industry has faced supply chain delays due to limited access to rare earth magnets. Indian companies have
repeatedly sought approvals to source these materials from China—without success.
Chinese authorities now require end-use certifications and local government assurances to ensure materials won’t be repurposed for defense—a
significant bureaucratic hurdle for Indian importers.
Beijing has reportedly asked automakers to buy complete motor units rather than just the magnets—raising both costs and dependency.
By contrast, some global firms like Volkswagen have secured supplies after high-level lobbying efforts, something Indian companies find harder
to achieve.
🌐 Global Partnerships: G7 Sets the Foundation
The Quad’s mineral initiative expands on an earlier G7 action plan introduced in Canada. India had backed the G7 proposal, which focuses on:
- Strengthening local value chains in developing countries
- Reducing single-country dependency
- Promoting ethical and sustainable mineral sourcing
As part of this, the World Bank’s RISE (Resilient and Inclusive Supply Chain Enhancement) platform was endorsed to support infrastructure
and innovation in partner nations.
🇮🇳 India’s Domestic Efforts and Global Partnerships
India’s National Critical Mineral Mission, with a proposed outlay of ₹16,300 crore, is aimed at ramping up:
- Exploration
- Overseas acquisitions
- Recycling infrastructure
- Research and development in mining technology
India has also joined the Minerals Security Partnership (MSP)—an initiative led by the United States and supported by G7 nations and others
like South Korea and Finland.
In February 2025, during PM Modi’s visit to Washington, India signed the TRUST Agreement (Transforming Relationship Utilizing Strategic
Technology) with the U.S.
This agreement focuses on:
- Joint mineral extraction projects
- Shared processing and refining capabilities
- Strengthening strategic autonomy in mineral technology
✅ Conclusion: Toward Resource Sovereignty
This Quad-led effort signals a shift toward building resilient, multilateral supply networks for critical materials that underpin the modern
economy. While challenges persist—especially in balancing cost, diplomacy, and technology—the collective strategy marks an important step in
reducing global dependency on any single supplier.