India and the US sign a rare earth partnership to strengthen supply chains and reduce dependence on China

India and the US have signed a new framework agreement focused on rare earths and critical minerals as both countries push to strengthen supply-chain security and reduce dependence on China.

The agreement was signed during the Quad foreign ministers’ meeting and covers cooperation across the full critical minerals chain, including mining, processing, refining and recycling. The framework also includes plans for joint investment, infrastructure development and financing support tied to strategic mineral projects.

Officials said the partnership is intended to support industries such as clean energy, semiconductors, electric vehicles and defence manufacturing.

The deal comes after China’s export restrictions on rare earth magnets in 2025 exposed vulnerabilities across global technology and manufacturing supply chains.

China currently dominates the global rare earth sector, accounting for around 60–70 per cent of mining output and more than 90 per cent of processing capacity. The export restrictions created supply concerns for sectors dependent on rare earth materials, including defence systems, EV motors and advanced electronics.

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In response, India has already started looking at domestic production incentives and alternative supply options, including recycling and “urban mining” from scrap materials. The new India-US framework is expected to help both countries develop alternative processing capacity and secure supplies outside China’s control.

The agreement also ties into the broader Quad critical minerals initiative, which aims to mobilise around USD 20 billion in public and private investment for mining, processing and recycling projects.

Officials said the partnership would strengthen cooperation among trusted countries on strategic resources and supply-chain resilience. The framework also supports India’s participation in the US-led Minerals Security Partnership and other international initiatives focused on responsible sourcing and critical minerals development.

The report noted that future cooperation could include joint mining ventures in Africa and South America as well as processing facilities in India.

Industry observers believe faster implementation could gradually shift parts of the global supply chain away from China and support the growth of alternative manufacturing hubs.

At the same time, the report warned that delays linked to investment approvals, infrastructure or environmental clearances could slow progress despite the strategic push.

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