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U.S. and Uzbekistan sign critical minerals pact

February 18, 2026 5 min read International Relations Economics GS Paper 2 GS Paper 3
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What Happened

  • The US and Uzbekistan signed a "Joint Investment Framework" between the US International Development Finance Corporation (DFC) and Uzbekistan to advance strategic cooperation on critical minerals.
  • The framework will prioritise investments across the critical mineral value chain — exploration, extraction, and processing.
  • A new US-Uzbekistan Joint Investment Holding Company has been proposed for future minerals and infrastructure projects.
  • Uzbekistan hosts dozens of critical mineral deposits including tungsten, lithium, vanadium, titanium, germanium, and graphite.
  • This pact is part of a broader US strategy — the US signed 11 bilateral critical minerals frameworks/MoUs at the 2026 Critical Minerals Ministerial, including with Argentina, Ecuador, Morocco, Philippines, UAE, UK, and Uzbekistan.
  • The agreement builds on a previous 2024 MoU between the two countries, with a new MoU signed on February 4, 2026.

Static Topic Bridges

Critical Minerals: Definition, Importance, and Global Supply Chain

Critical minerals are essential for the energy transition, advanced manufacturing, and defence applications, with their supply chains increasingly at the centre of geopolitical competition.

  • A mineral is designated "critical" when it is essential to economic or national security and faces high supply disruption risk from physical scarcity, trade policy, or market concentration.
  • Key critical minerals: Lithium, cobalt, graphite, rare earth elements, nickel, tungsten, vanadium, titanium, germanium — used in EV batteries, wind turbines, solar panels, semiconductors, and defence systems.
  • China's dominance: Processes over 50% of the world's lithium, 66% of cobalt, and nearly all rare earth elements. China's share of raw extraction is only 10-30%, but its share of refining and processing reaches 60-70%.
  • China imposed export restrictions on critical minerals (gallium, germanium, antimony) in 2023-2024, heightening supply chain concerns.
  • India's Critical Minerals List (2023): Identified 30 minerals critical for energy transition and technology sectors.
  • India established Khanij Bidesh India Limited (KABIL) — a joint venture of NALCO, HCL, and MECL — as the nodal agency for securing overseas critical mineral assets.
  • India has signed critical minerals partnerships with Australia, US, and EU and joined the Minerals Security Partnership (MSP) led by the US.

Connection to this news: The US-Uzbekistan pact is part of the global scramble to build "China-free" critical mineral supply chains. For India, which is pursuing its own critical minerals strategy through KABIL and bilateral partnerships, this development affects the geopolitics of the energy transition and supply chain resilience.

US Development Finance Corporation (DFC) and Geo-economic Statecraft

The DFC is a key tool of US foreign economic policy, channelling development finance to counter Chinese infrastructure and resource investments globally.

  • US International Development Finance Corporation (DFC) was established in 2019 under the BUILD Act (Better Utilization of Investments Leading to Development), replacing the Overseas Private Investment Corporation (OPIC).
  • DFC has an investment ceiling of $60 billion — significantly expanded from OPIC's $29 billion limit.
  • DFC provides loans, equity investments, political risk insurance, and technical development to private sector projects in developing countries.
  • DFC was explicitly designed to counter China's Belt and Road Initiative (BRI) by offering transparent, market-based financing alternatives.
  • DFC works alongside other US-led initiatives: Blue Dot Network (infrastructure quality standards), Partnership for Global Infrastructure and Investment (PGII/B3W), and the India-Middle East-Europe Economic Corridor (IMEC).
  • Uzbekistan (population: approximately 36 million) is Central Asia's most populous nation, strategically positioned between Russia and China.

Connection to this news: The DFC's role in the Uzbekistan minerals pact exemplifies the US shift from traditional development finance toward geo-economic statecraft, using investment frameworks to secure strategic resource access in regions where China has been expanding its influence.

Central Asia and the New Great Game for Resources

Central Asia has emerged as a critical arena in the geopolitical competition for energy and mineral resources, with the US, China, and Russia vying for influence in the region.

  • Central Asian states: Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, and Turkmenistan — collectively rich in hydrocarbons, uranium, rare earth elements, and other critical minerals.
  • Kazakhstan is the world's largest uranium producer; Uzbekistan is a top-10 uranium producer and hosts significant deposits of tungsten, gold, and copper.
  • China's BRI has made significant inroads in Central Asia through the China-Central Asia-West Asia Corridor, with investments in infrastructure, mining, and energy.
  • The C5+1 format (five Central Asian states + US) serves as the primary multilateral engagement mechanism for US-Central Asian cooperation.
  • Shanghai Cooperation Organisation (SCO): Central Asian states are members alongside China, Russia, and India, creating a multilateral platform where competing interests converge.
  • India has its own Connect Central Asia Policy (2012) aimed at deepening economic and strategic engagement with the region.
  • The International North-South Transport Corridor (INSTC): A multi-modal network connecting India to Central Asia and Russia via Iran — relevant for India's connectivity to Central Asian mineral resources.

Connection to this news: The US-Uzbekistan critical minerals pact illustrates the intensifying resource competition in Central Asia, directly relevant to India as it also seeks access to Central Asian mineral and energy resources through corridors like INSTC and engagement frameworks like SCO.

Key Facts & Data

  • 11 bilateral MoUs: Signed at the 2026 Critical Minerals Ministerial by the US
  • DFC: US International Development Finance Corporation (est. 2019, BUILD Act), $60 billion investment ceiling
  • China's processing share: 50%+ lithium, 66% cobalt, ~100% rare earth elements
  • 30 minerals: On India's Critical Minerals List (2023)
  • KABIL: India's nodal agency for overseas critical mineral acquisition (NALCO + HCL + MECL)
  • Uzbekistan mineral deposits: Tungsten, lithium, vanadium, titanium, germanium, graphite, uranium, gold
  • ~36 million: Uzbekistan's population (Central Asia's largest)
  • Minerals Security Partnership (MSP): US-led initiative including India, Australia, Canada, EU, Japan, South Korea
  • February 4, 2026: Date of new US-Uzbekistan MoU on critical minerals
  • SCO: Multilateral platform connecting India, China, Russia, and Central Asian states