India and the United States signed a bilateral framework on critical minerals and rare earth elements in New Delhi on March 30, 2024.

The agreement seeks to secure the supply chains of materials essential for high-tech industries and green energy. By cooperating on mining, processing, recycling, and investment, the two nations intend to reduce their dependence on China, which currently dominates 70% of global rare-earth mining [1] and 90% of global rare-earth processing [1].

Indian External Affairs Minister S. Jaishankar and U.S. Senator Marco Rubio represented their respective governments during the signing. The partnership is designed to cover the entire supply chain, creating a strategic corridor for the movement of critical minerals between the two countries [2].

For India, the deal provides a path toward expanding its domestic capabilities. The country currently produces only four critical minerals [3]. This framework is expected to create new investment opportunities in the critical-minerals sector and allow India to integrate more deeply into global value chains [1].

The pact also aligns with broader strategic goals to diversify sources of raw materials. Rare earth elements are vital for the production of semiconductors, electric vehicle batteries, and defense equipment, industries where supply disruptions can have significant economic and security implications [1].

While some reports link the agreement to broader Quad initiatives, the bilateral framework specifically targets the technical and financial aspects of mineral acquisition and refinement [2].

“China dominates 70% of global rare-earth mining”

This agreement signals a strategic shift toward 'friend-shoring,' where the U.S. and India align their industrial policies to mitigate the geopolitical risk of a single-country monopoly over essential minerals. By targeting the processing stage—where China's dominance is most acute at 90%—the framework attempts to break the bottleneck that currently limits the global transition to green energy and advanced electronics.