India and US team up to challenge China’s monopoly with Pax Silica
New Delhi (The Uttam Hindu): Despite the ongoing trade dispute between India and the US over import duties, both countries appear united in the field of strategically important 'critical minerals' (rare minerals). Both countries have agreed to strengthen the global supply chain and free it from Chinese influence. Taking a major step in this direction, the new US Ambassador to New Delhi, Sergio Gor, has proposed India becoming a member of the new organization on critical minerals, 'Pax Silica'.
Immediately following this proposal, a high-level meeting was held in Washington, attended by the world's leading democracies, led by US Treasury Secretary Scott Bessant. India was represented by Railway and IT Minister Ashwini Vaishnav. This meeting is being considered a major diplomatic initiative to counter China's growing dominance in the mining and processing of critical minerals globally. Its primary objective is to ensure an uninterrupted and secure supply of rare earth metals for semiconductor, solar energy, and other high-tech manufacturing sectors.
In addition to India, the meeting was attended by the finance ministers of Japan, Israel, Canada, Britain, Italy, South Korea, Mexico, and France. An important consensus reached during the discussions was that all participating countries would share research and development among themselves. This would facilitate the exchange of technology in the exploration, extraction, and processing of critical minerals. The US government described the meeting as essential for the stability of the global economy and stated that all participants unanimously emphasized the need to address supply chain vulnerabilities as quickly as possible.
US Treasury Secretary Bessant expressed hope that all countries would adopt risk-mitigation policies. Without naming China, she pointed out that a single country controls 60 to 90 percent of global reserves of rare minerals, increasing the potential for manipulation or disruption of supply chains. Meanwhile, after the meeting, Indian Minister Ashwini Vaishnav said that a secure critical mineral supply chain is crucial to the goal of a "developed India." He explained that India is promoting domestic exploration of these minerals and is committed to achieving self-reliance in this sector through global partnerships.
Looking at the data, the US government has identified 60 rare earth metals and the Indian government has identified 35, including lithium, cobalt, nickel, graphite, rare earth elements, silicon, copper, beryllium, germanium, and bismuth. According to the International Energy Agency's (IEA) 'Global Critical Minerals Outlook 2025' report, China plays a leading role in the refining of 19 out of 20 major minerals, with an average market share of around 70 percent. In particular, China controls 70 to 90 percent of the mining and refining of rare earth elements, essential for semiconductors, electric vehicles, and solar panels.