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India–US Critical Minerals Cooperation (Source: Indian Express)

Context:

The US-India Business Council has formed a Critical Minerals Security Task Force after India and the US signed a bilateral Critical Minerals Framework. The move aims to deepen cooperation in critical mineral supply chains and reduce dependence on China-dominated processing networks.

Critical Minerals and India–US Supply Chain Strategy

Explanation: 

  • Critical minerals are minerals essential for modern technologies, clean energy, electronics, defence, semiconductors and electric mobility.
  • They include lithium, cobalt, nickel, graphite, gallium, tungsten, rare earth elements and copper.
  • China controls nearly 90% of global critical mineral processing, creating supply-chain dependence for many countries.
  • Critical minerals are required for EV batteries, renewable energy systems, electronics, magnets, defence equipment and data-centre technologies.
  • India has identified 30 critical minerals, and many overlap with the US priority list.
  • Key cooperation areas include lithium refining, cathode active materials, recycling, graphite production, rare earth processing and magnet manufacturing.
  • India has negligible lithium refining capacity, making battery supply chains import-dependent.
  • India is also promoting rare earth permanent magnets to support domestic manufacturing and reduce China-linked vulnerabilities.

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