India, US seal critical minerals and rare earths pact amid global supply chain race

India and the United States signed a bilateral framework agreement on securing the supply, mining, and processing of critical minerals and rare earth element...

What Happened

India and the United States signed a bilateral framework agreement on securing the supply, mining, and processing of critical minerals and rare earth elements on May 26, 2026, in New Delhi.
The agreement was concluded during a four-day visit to India by the US Secretary of State, with India's Ministry of External Affairs as the counterpart.
The pact covers cooperation across the full value chain: exploration, mining, processing, recycling, financing, and long-term supply-chain management.
The agreement is designed to diversify global supply chains and reduce dependence on China, which processes approximately 90% of the world's rare earth supply despite holding about 60% of known reserves.
The framework is expected to catalyse investment flows, technology collaboration, and institutional mechanisms for long-term resource security between the two countries.

Static Topic Bridges

Critical Minerals — Definition, Strategic Importance, and India's List

Critical minerals are raw materials that are economically significant and whose supply is subject to high risk of disruption. They are indispensable inputs for clean energy technologies (solar panels, wind turbines, EV batteries), semiconductors, defence systems, and emerging technology hardware. India's Ministry of Mines notified a list of 30 critical minerals in 2023, including Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REEs), Vanadium, Tungsten, Gallium, Germanium, Indium, and Platinum Group Elements (PGEs), among others.

India's list of 30 critical minerals was notified under the framework of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
China dominates global rare earth processing: ~60% of global reserves are in China; ~90% of global processing capacity is Chinese-controlled.
Rare earth elements (REEs) comprise 17 elements: 15 lanthanides + Scandium + Yttrium. They are divided into Light REEs (LREEs: La, Ce, Pr, Nd) and Heavy REEs (HREEs: Gd, Tb, Dy, Y, etc.).
India holds approximately 5.3% of global REE reserves (~6.9 million tonnes), making it among the top-5 holders globally.
India's coastal states — Kerala, Tamil Nadu, Andhra Pradesh, and Odisha — hold the bulk of REE deposits in the form of monazite-bearing coastal sands.

Connection to this news: The bilateral framework targets this strategic vulnerability directly, positioning India as both a supplier and a processing partner to the US, leveraging India's monazite-rich reserves alongside US technology and financing.

MMDR Amendment Act, 2023 — Opening Critical Minerals to Private Sector

The Mines and Minerals (Development and Regulation) Amendment Act, 2023, enacted with effect from August 17, 2023, was a landmark regulatory reform enabling India's critical minerals strategy. It delisted 6 minerals (including Lithium-bearing minerals, Titanium-bearing minerals, Beryl, Niobium-Tantalum minerals, and Zirconium-bearing minerals) from the "atomic minerals" category under Part-B of the First Schedule, thereby opening them to private sector exploration and mining.

The amendment introduced a new Exploration Licence (EL) to attract FDI and engage junior mining companies in deep-seated and critical mineral exploration.
It empowered the Central Government to exclusively auction mining leases and composite licences for a defined list of critical minerals (molybdenum, rhenium, tungsten, cobalt, graphite, vanadium, REEs, etc.).
Prior to 2023, these minerals could only be explored and mined by government entities; private participation was barred.
Strategic rationale: align domestic mining law with India's commitment to energy transition and net-zero by 2070.

Connection to this news: The MMDR 2023 reforms created the legal infrastructure for India to partner with foreign entities like US firms — private companies can now bid for exploration licences and enter joint ventures for critical mineral projects under the new framework.

National Critical Mineral Mission (NCMM) — India's Strategic Supply Architecture

India launched the National Critical Mineral Mission (NCMM) covering FY 2024-25 to FY 2030-31 to secure end-to-end critical mineral value chains. The Mission targets domestic production of at least 15 critical minerals (graphite, lithium, potash, REEs, etc.) and the creation of a National Critical Minerals Stockpile for at least 5 minerals to buffer against supply disruptions.

Outlay: ₹16,300 crore (approx. USD 1.9 billion) in government expenditure; additional ~₹18,000 crore from public sector undertakings.
Target: 1,200 domestic exploration projects completed by 2030-31.
Union Budget 2026-27 announced "Dedicated Rare Earth Corridors" in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
IREL (India) Limited — a Mini Ratna government enterprise — is the only entity currently processing monazite to extract REE compounds in India.
The Mission has three pillars: (1) Exploration and Domestic Production, (2) Overseas Acquisition of Critical Mineral Assets, (3) Processing and Recycling Capacity Build-up.

Connection to this news: The India-US framework complements the NCMM by bringing in US investment and technology for the processing and recycling pillars, which are India's weakest link in the critical minerals value chain.

India-US Strategic Partnership — Framework for Technology and Economic Cooperation

The India-US bilateral relationship has evolved from a primarily diplomatic partnership to a comprehensive strategic and technology alliance, anchored by the iCET (Initiative on Critical and Emerging Technology) launched in January 2023. The iCET created co-development pathways in semiconductors, advanced telecom (5G/6G), AI, space, and now critical minerals.

iCET: launched at the US-India Leaders' Summit, January 2023; co-led by the National Security Advisers of both countries.
India-US Defence Technology and Trade Initiative (DTTI): framework for co-production and co-development of defence technologies.
The 2023 India-US Critical Minerals Partnership Roadmap identified joint exploration, processing, and stockpiling as priority areas.
The bilateral framework signed in 2026 operationalises the roadmap with binding cooperation mechanisms.

Connection to this news: The May 2026 agreement is the most concrete step in translating the iCET's technology-partnership intent into supply-chain reality, specifically in the minerals and materials domain that underpins semiconductors, EVs, and defence manufacturing.

Key Facts & Data

China's share of global rare earth processing: approximately 90%
China's share of global rare earth reserves: approximately 60%
India's share of global REE reserves: approximately 5.3% (~6.9 million tonnes)
India's 30 critical minerals list: notified 2023 under the MMDR Act framework
MMDR Amendment Act effective date: August 17, 2023
NCMM outlay: ₹16,300 crore government funds + ₹18,000 crore PSU investment (FY 2024-25 to 2030-31)
REE deposits in India: primarily monazite-bearing coastal sands in Kerala, Tamil Nadu, Andhra Pradesh, Odisha
IREL (India) Limited: sole government entity processing monazite for REE compounds; Mini Ratna status
iCET launched: January 2023, at US-India Leaders' Summit